FLG

Flagstar slashes its 2026 and 2027 NII and EPS outlook, citing higher credit costs and slower balance-sheet growth, while pushing its profitability targets to 2028.

We had previously called Flagstar (FLG) a value trap (twice actually). We review the entire story from the beginning. We go over the Q3-2026 results which solidify our case.

Flagstar Bank, National Association NYSE: FLG said its turnaround plan remains intact but will take longer to reach its targeted profitability metrics as elevated interest rates, inflation and deposit competition pressure credit costs and balance-sheet growth.

While the top- and bottom-line numbers for Flagstar Bank (FLG) give a sense of how the business performed in the quarter ended September 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

Flagstar Bank (FLG) came out with quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.06 per share. This compares to a loss of $0.07 per share a year ago.

NET INTEREST INCOME ROSE $20 MILLION OR 5% WHILE THE NET INTEREST MARGIN INCREASED FOUR BASIS POINTS TO 2.17% TOTAL LOANS INCREASED FOR A SECOND CONSECUTIVE QUARTER UP $958 MILLION OR 6% ANNUALIZED, DRIVEN BY CONTINUED MOMENTUM IN THE COMMERCIAL BANKING BUSINESS AS C&I LOANS INCREASED $2.0 BILLION OR 11% COMMERCIAL BANKING DEPOSITS GREW $0.6 BILLION OR 7% REFLECTING OUR RELATIONSHIP DRIVEN GROWTH STRATEGY TOTAL CRE PAR PAYOFFS TOTALED $1.2 BILLION, OF WHICH 35% WERE SUBSTANDARD; CRE  CONCENTRATION RATIO IMPROVED TO 346% COMPARED TO 350% LAST QUARTER THE PROVISION FOR CREDIT LOSSES INCREASED $58 MILLION, PRIMARILY FROM THE IMPACT OF HIGHER INTEREST RATES INCLUDING ON THE NYC RENT REGULATED MULTI-FAMILY PORTFOLIO CET1 CAPITAL RATIO OF 12.38%; COMPLETED $250 MILLION BUYBACK IN EARLY OCTOBER Third Quarter 2026 Compared to Second Quarter 2026 Profitability Capital PPNR of $66 million was unchanged Adjusted PPNR of $66 million , up $4 million or 6% Net interest income rose $20 million or 5% to $460 million Net interest margin increased 4 basis points to 2.17% Deposit costs increased 1 basis point while overall cost of funds rose 2 basis points Operating expenses of $441 million up 3%   CET1 capital ratio of 12.38%, at or above peer group levels Excess capital of $1.2 billion, using low end of target CET1 range of 10.5% Book value per share of $17.82 Tangible book value per share of $17.05 Tangible book value per share adjusted for warrant exercise is $15.56   Balance Sheet Asset Quality Total C&I loans increased $2.0 billion or  11% to $20.6 billion Total loans increased $958 million to $61.9 billion , up 2% or 6% annualized Strategic C&I loan focus areas grew $1.6 billion or 18% Commercial Bank deposits grew $575 million , up 7% Total MF/CRE loans declined $1.1 billion or 3%   Total NYC multi-family loans declined $531 million or 4% Total ACL of $0.9 billion, unchanged, and was 1.50% of total loans HFI: Total multi-family ACL coverage of 1.63% ACL coverage of 2.97% for multi-family loans with 50% or greater rent-regulated units Non-accrual loans were relatively stable Substandard loans increased $248 million or 4% as overall Criticized/Classified loans increased $670 million or 6% NCOs to average loans was 0.49% vs. 0.66%   NEW YORK, Oct. 23, 2026 /PRNewswire/ -- Flagstar Bank, N.A.

Flagstar Bank (FLG) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

NEW YORK, Oct. 9, 2026 /PRNewswire/ -- Flagstar Bank, N.A., (NYSE: FLG) (the "Bank") today announced that it plans to issue results for the three and nine months ended September 30, 2026 at approximately 6:00 a.m.

Investors need to pay close attention to FLG stock based on the movements in the options market lately.

NEW YORK, N.Y., Sept. 8, 2026 /PRNewswire/ -- Flagstar Bank, N.A.