Flagstar Bank, National Association (NYSE:FLG) Releases Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Flagstar Bank, National Association (NYSE:FLG) announced its quarterly earnings data on Friday. The company reported $0.05 EPS for the quarter, missing the consensus estimate of $0.06 by ($0.01), FiscalAI reports. The company had revenue of $512.00 million during the quarter, compared to analysts’ expectations of $540.87 million. Flagstar Bank, National Association had a negative net margin of 1.22% and a negative return on equity of 0.11%. The business’s revenue for the quarter was up 4.0% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.14) earnings per share.

Here are the key takeaways from Flagstar Bank, National Association’s conference call:

• Flagstar reported its third consecutive quarter of profitability, with adjusted EPS improving to $0.05 from a $0.14 loss a year ago and pre-provision net revenue up 51% sequentially.
• The bank announced a $250 million share repurchase program, supported by a strong 13.16% CET1 ratio and about $1.6 billion of excess capital above its target range.
• C&I lending momentum was strong, with record $2.8 billion of originations and $2.0 billion of net loan growth in the quarter, alongside a strong pipeline for continued growth.
• The company continued to shrink CRE and multifamily exposure through elevated payoffs, which helps diversification and asset quality but is also pressuring near-term interest income and NIM guidance.
• Credit trends were mixed: criticized and classified loans declined, but net charge-offs rose to $100 million and nonaccrual loans increased modestly as management performed an 18-month forward review of maturing and resetting credits.

Flagstar Bank, National Association Stock Performance

Shares of NYSE:FLG traded down $0.69 during midday trading on Friday, reaching $14.02. The company’s stock had a trading volume of 4,569,561 shares, compared to its average volume of 4,994,043. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 1.47. The stock has a fifty day moving average of $14.50 and a 200 day moving average of $13.80. Flagstar Bank, National Association has a twelve month low of $10.57 and a twelve month high of $15.44. The firm has a market capitalization of $5.84 billion, a PE ratio of -63.52 and a beta of 1.01.

Flagstar Bank, National Association Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 17th. Stockholders of record on Sunday, June 7th were paid a $0.01 dividend. The ex-dividend date was Friday, June 5th. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.3%. Flagstar Bank, National Association’s dividend payout ratio is presently -18.18%.

Flagstar Bank, National Association News Roundup

Here are the key news stories impacting Flagstar Bank, National Association this week:

• Positive Sentiment: Flagstar announced a $250 million share repurchase program, which signals confidence in its capital position and can support shareholder returns.
• Positive Sentiment: The bank posted its third consecutive quarter of profitability, an improvement from the loss reported a year ago.
• Positive Sentiment: Core business trends improved, with C&I loans up 12% quarter over quarter, deposits rising, and operating expenses down 3%, suggesting better operating discipline.
• Positive Sentiment: Capital remains solid, with a CET1 ratio of 13.16% and excess capital above management’s target range.

Institutional Investors Weigh In On Flagstar Bank, National Association

Hedge funds have recently added to or reduced their stakes in the business. UMB Bank n.a. lifted its stake in shares of Flagstar Bank, National Association by 23.6% in the fourth quarter. UMB Bank n.a. now owns 3,766 shares of the company’s stock worth $47,000 after buying an additional 719 shares in the last quarter. Mercer Global Advisors Inc. ADV raised its holdings in Flagstar Bank, National Association by 6.2% in the 3rd quarter. Mercer Global Advisors Inc. ADV now owns 16,060 shares of the company’s stock valued at $185,000 after acquiring an additional 936 shares during the last quarter. Mendon Capital Advisors Corp raised its holdings in Flagstar Bank, National Association by 0.4% in the 4th quarter. Mendon Capital Advisors Corp now owns 316,332 shares of the company’s stock valued at $3,983,000 after acquiring an additional 1,250 shares during the last quarter. DV Equities LLC purchased a new position in Flagstar Bank, National Association in the 4th quarter worth approximately $25,000. Finally, Corient Private Wealth LLC boosted its holdings in shares of Flagstar Bank, National Association by 4.5% during the 4th quarter. Corient Private Wealth LLC now owns 49,175 shares of the company’s stock worth $593,000 after purchasing an additional 2,136 shares during the last quarter. 67.88% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

FLG has been the subject of a number of research analyst reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Flagstar Bank, National Association in a report on Friday, July 17th. Cantor Fitzgerald boosted their price objective on shares of Flagstar Bank, National Association from $16.00 to $17.00 and gave the company an “overweight” rating in a report on Wednesday, July 15th. Piper Sandler raised their target price on Flagstar Bank, National Association from $16.50 to $17.50 and gave the stock an “overweight” rating in a research note on Friday, June 26th. DA Davidson lifted their price target on Flagstar Bank, National Association from $16.00 to $17.00 and gave the stock a “buy” rating in a research report on Monday, April 27th. Finally, Citigroup boosted their price target on Flagstar Bank, National Association from $17.00 to $18.00 and gave the company a “buy” rating in a research note on Thursday, June 25th. Nine equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Flagstar Bank, National Association presently has a consensus rating of “Moderate Buy” and a consensus price target of $16.96.

Flagstar Bank, National Association Company Profile

Flagstar Financial Corporation (NYSE: FLG) is a bank holding company whose principal subsidiary, Flagstar Bank, provides a range of financial services across the United States. Headquartered in Troy, Michigan, Flagstar combines commercial banking, mortgage lending and servicing, and deposit products to serve individuals, businesses and public entities. As a publicly traded company, Flagstar leverages its banking charter and national mortgage platform to deliver tailored financial solutions through both digital and branch channels.

The company’s mortgage business is one of the largest residential originators and servicers in the nation, offering retail, wholesale and correspondent lending channels.