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

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

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 FLG stock opened at $13.85 on Friday. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 1.47. The company has a market cap of $5.77 billion, a PE ratio of -62.94 and a beta of 1.01. The company’s fifty day simple moving average is $14.51 and its 200-day simple moving average is $13.80. Flagstar Bank, National Association has a 52 week low of $10.57 and a 52 week high of $15.44.

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 given a $0.01 dividend. The ex-dividend date of this dividend was Friday, June 5th. This represents a $0.04 annualized dividend and a dividend yield of 0.3%. Flagstar Bank, National Association’s dividend payout ratio is presently -18.18%.

Flagstar Bank, National Association declared that its Board of Directors has approved a share buyback plan on Friday, July 24th that allows the company to repurchase $250.00 million in outstanding shares. This repurchase authorization allows the company to reacquire up to 4.1% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Alliancebernstein L.P. boosted its holdings in Flagstar Bank, National Association by 1,130.1% in the 2nd quarter. Alliancebernstein L.P. now owns 6,635,962 shares of the company’s stock worth $70,341,000 after acquiring an additional 6,096,512 shares during the period. Alyeska Investment Group L.P. purchased a new stake in shares of Flagstar Bank, National Association during the fourth quarter worth about $53,216,000. Goldman Sachs Group Inc. purchased a new position in Flagstar Bank, National Association in the first quarter valued at about $21,022,000. Bridgewater Associates LP increased its holdings in Flagstar Bank, National Association by 708.2% during the 4th quarter. Bridgewater Associates LP now owns 1,703,894 shares of the company’s stock worth $21,452,000 after purchasing an additional 1,493,069 shares during the last quarter. Finally, Two Sigma Investments LP boosted its stake in shares of Flagstar Bank, National Association by 132.5% during the 3rd quarter. Two Sigma Investments LP now owns 1,699,958 shares of the company’s stock valued at $19,635,000 after buying an additional 968,854 shares during the last quarter. Institutional investors and hedge funds own 67.88% of the company’s stock.

Analysts Set New Price Targets

FLG has been the topic of several recent research reports. Wall Street Zen upgraded shares of Flagstar Bank, National Association from a “sell” rating to a “hold” rating in a research report on Saturday, July 18th. Morgan Stanley upped their target price on Flagstar Bank, National Association from $14.00 to $15.00 and gave the company an “equal weight” rating in a research note on Monday, June 29th. Cantor Fitzgerald raised their price target on Flagstar Bank, National Association from $16.00 to $17.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 15th. DA Davidson boosted their target price on shares of Flagstar Bank, National Association from $16.00 to $17.00 and gave the company a “buy” rating in a research note on Monday, April 27th. Finally, Citigroup upped their price objective on shares of 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 investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $16.96.

Trending Headlines about Flagstar Bank, National Association

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 value. Flagstar Bank, N.A. Announces $250 Million Share Repurchase Program
• Positive Sentiment: The bank said it posted its third straight quarter of profitability, with pre-provision net revenue improving and expenses down 3% from the prior quarter, showing better operating leverage. Flagstar Bank Reports Second Quarter 2026 Results
• Positive Sentiment: Deposit costs declined and total deposits increased, while C&I loans grew 12% quarter over quarter, suggesting improving core banking momentum. Flagstar Bank Reports Second Quarter 2026 Results
• Neutral Sentiment: On an earnings-call and results basis, Flagstar reported adjusted EPS of $0.05 versus expectations of $0.06, and revenue of $512 million versus estimates of $540.9 million, a modest miss that likely weighed on sentiment. Flagstar Bank (FLG) Q2 2026 Earnings Call Transcript
• Negative Sentiment: Several headlines emphasized that Flagstar lagged consensus EPS and revenue estimates, which is the main reason the stock is reacting lower despite better year-over-year earnings. Flagstar Bank (FLG) Lags Q2 Earnings and Revenue Estimates

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.