FLG

Flagstar Financial’s second quarter results disappointed the market, as both revenue and adjusted earnings per share fell short of Wall Street expectations. Management attributed this performance to a mix of strategic commercial real estate (CRE) loan reductions and robust commercial and industrial (C&I) loan growth. CEO Joseph Otting described the period as “an inflection point in our growth trajectory,” emphasizing the company’s efforts to diversify its loan portfolio and reduce balance sheet risk, even as net charge-offs increased and overall profitability improved for the third consecutive quarter. Is now the time to buy FLG? Find out in our full research report (it’s free). Revenue: $512 million vs analyst estimates of $543.6 million (3.2% year-on-year growth, 5.8% miss) Adjusted EPS: $0.05 vs analyst estimates of $0.07 ($0.02 miss) Market Capitalization: $5.94 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. David Chiaverini (Jefferies) asked about balancing excess capital between growth and buybacks. CEO Joseph Otting emphasized monitoring core earnings, credit quality, and CRE payoffs to determine capital allocation. Casey Haire (Autonomous Research) pressed on the outlook for reducing nonaccrual loans and net charge-offs. CFO Lee Smith projected a modest reduction in nonaccruals by year-end, though higher than previously forecasted. Jared Shaw (Barclays) questioned trends in loan yields and the impact of par payoffs. Smith responded that recent asset yield declines should represent a floor, with future yields expected to rise as more loans reset at market rates. Manan Gosalia (Morgan Stanley) inquired about deposit growth composition and potential for fee income. Co-President Richard Raffetto highlighted ongoing C&I-related deposit inflows and anticipated growth in capital markets and treasury management fees. Bernard Von Gizycki (Deutsche Bank) asked about interest rate sensitivity in the 18-month loan outlook. Smith detailed the scenario analysis, noting that higher rates may delay borrower action but reset and maturity dates are fixed. Looking forward, our analysts are monitoring (1) the pace and composition of CRE and multifamily loan runoff, (2) the ability of new C&I lending and deposit growth to offset pressure on net interest margins, and (3) progress in reducing nonaccrual and criticized loans. The effectiveness of expense control and the success of the share buyback program will also be key markers of Flagstar’s execution. Flagstar Financial currently trades at $14.19, down from $14.71 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Shares of Flagstar Bank, National Association FLG plunged 5.9% in Friday’s trading session on lower-than-expected quarterly results. Its second-quarter 2026 adjusted earnings per share of 5 cents missed the Zacks Consensus Estimate of 6 cents. In the year-ago quarter, the company had incurred a loss of 14 cents. Results were primarily affected by lower non-interest income. However, higher net interest income (NII), lower expenses and a decline in provisions for credit losses offered some support. Results excluded certain non-recurring items. After considering this item, net income available to common shareholders on a GAAP basis was $26 million against a net loss of $78 million in the prior-year quarter. Quarterly revenues of $516 million missed the Zacks Consensus Estimate of $545 million by 5.3%. The metric rose 4% from the prior-year quarter. NII was $440 million, up 5% year over year. The net interest margin of 2.13% expanded 32 basis points from the year-ago quarter, driven by lower deposit and borrowing costs, partially offset by lower earning-asset yields. Non-interest income was $76 million, down 1% from the year-ago quarter. The decrease was mainly due to lower gains on loan sales and securitizations and reduced other income, partly offset by higher fee income and bank-owned life insurance income. Non-interest expenses of $450 million decreased 12% year over year. Adjusted operating expenses were $427 million, down 7% from the second quarter of 2025, reflecting lower FDIC insurance, compensation and benefits, professional services, and general and administrative costs. Total loans and leases held for investment increased 1% sequentially to $60.9 billion as of June 30, 2026. The increase was due to solid commercial and industrial loan growth, partly offset by continued reductions in multi-family and commercial real estate portfolios. As of June 30, 2026, total deposits increased 1% sequentially to $67.5 billion. Growth was driven by higher Commercial and Private Bank deposits, along with core deposits. Non-accrual loans held for investment were $2.8 billion, down 12% from $3.2 billion as of June 30, 2025. Net charge-offs were $100 million, down 15% year over year. The company recorded a provision for credit losses of $18 million, down 72% from $64 million in the year-ago quarter. As of June 30, 2026, the common equity tier 1 ratio was 13.16% compared with 12.33% as of June 30, 2025. The total risk-based capital ratio increased to 16.58% from 15.77% in the year-ago quarter. The leverage capital ratio rose to 9.70% from 8.61% a year ago, reflecting improved capital strength. The company also announced a $250-million share repurchase program, citing progress in executing its strategic plan, a strong capital position and a positive long-term outlook. Flagstar Financial’s solid C&I loan and deposit growth, lower funding costs, expense discipline and reduced commercial real estate exposure remain encouraging. The company delivered positive operating leverage, supported by higher NII and substantially lower credit provisions and expenses from the year-ago period. However, lower non-interest income remains a concern. Continued execution on commercial banking expansion, operating efficiency initiatives and revenue diversification will be key to sustaining earnings improvement. Flagstar Bank, National Association price-consensus-eps-surprise-chart | Flagstar Bank, National Association Quote Currently, FLG carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zions Bancorporation’s ZION second-quarter 2026 adjusted earnings of $1.74 per share surpassed the Zacks Consensus Estimate of $1.57. Moreover, the bottom line increased 10.1% from the year-ago quarter. ZION’s results were primarily aided by higher net interest income and growth in non-interest income. Higher sequential loan balance was another positive. However, a rise in non-interest expenses hurt the results to some extent. Commerce Bancshares Inc.’s CBSH second-quarter 2026 earnings of $1.10 per share surpassed the Zacks Consensus Estimate of $1.04. The bottom line reflected a rise of 1% from the prior-year quarter. CBSH’s results primarily benefited from higher NII and a rise in non-interest income. The sequential rise in loan balances acted as a tailwind. However, higher expenses and provisions hurt CBSH’s results to some extent. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Flagstar Bank, National Association (FLG) : Free Stock Analysis Report Zions Bancorporation, N.A. (ZION) : Free Stock Analysis Report Commerce Bancshares, Inc. (CBSH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a third consecutive quarter of profitability, driven by disciplined expense management and a 51% increase in adjusted pre-provision net revenue. Delivered record C&I loan originations of $2.8 billion, reflecting the successful recruitment of over 75 new-to-bank relationships and expansion into new verticals like energy and healthcare. Systematically reduced Commercial Real Estate (CRE) concentration to 350%, down from over 500% at the start of the transformation, through elevated par payoffs. Improved asset quality by clearing out lower-quality credits, noting that 39% of the quarter's CRE par payoffs were substandard rated loans. Maintained a top-quartile capital position with a 13.16% CET1 ratio, providing the flexibility to support organic growth while initiating a $250 million share buyback. Managed deposit costs down by 5 basis points despite a higher-for-longer interest rate environment by focusing on commercial and private banking relationship growth. Revised 2026 EPS guidance to $0.40-$0.50 and 2027 EPS to $1.60-$1.70, reflecting faster-than-expected CRE runoff and a shift toward interest-bearing deposit growth. Anticipates total balance sheet growth to reach approximately $100 billion by the end of 2027, driven by sustained C&I expansion of over $2 billion per quarter. Expects Net Interest Margin (NIM) expansion to continue as $11 billion in low-coupon multifamily loans reset or mature through 2027. Projects a reduction in nonaccrual loans to approximately $2.3 billion by year-end 2026 through aggressive workout and disposal strategies. Assumes a single interest rate hike in October 2026 within the current financial modeling framework. Completed a comprehensive 100% review of all loans maturing or resetting through 2027 to proactively manage credit risk. Reported net charge-offs increased to $100 million for the quarter., though approximately half were previously fully reserved for. Noted that while New York City rent-regulated multifamily exposure remains a focus, 40% of nonaccrual loans in that portfolio are currently paying. Exited an equity investment in Figure Technologies, resulting in a one-time gain of $3.5 million during the quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management prioritizes three variables: core earnings growth, credit quality trends, and the capital required to support C&I expansion versus CRE payoffs. The $250 million buyback is a signal of confidence in the long-term outlook, with future authorizations dependent on these performance metrics. Expects consistent growth moving forward as 62 new professionals hired in the first half of 2026 continue to build their pipelines. The bank is expanding into new geographies like Texas and new verticals including food and beverage, leisure, and gaming. Internal modeling suggests that buildings with less than 70% rent regulation can offset rent freezes through market-rate units. Management believes they are adequately reserved for potential degradation, supported by $2.1 billion in excess pre-tax capital. NIM expansion is underpinned by replacing 3.9% weighted average coupon multifamily loans with C&I loans at market rates (SOFR + 226 bps). Additional tailwinds include reducing reliance on high-cost wholesale borrowings and increasing fee income from capital markets and treasury services.

This article first appeared on GuruFocus. Release Date: July 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Flagstar Bank NA (NYSE:FLG) reported its third consecutive quarter of profitability, with improved earnings and higher pre-provision net revenue. The bank announced a $250 million share buyback, signaling confidence in its strategic plan and long-term outlook. Flagstar Bank NA (NYSE:FLG) achieved significant growth in its C&I loan portfolio, with $2 billion of net C&I loan growth and record origination volumes. The bank successfully reduced its commercial real estate (CRE) exposure, with a decrease in CRE concentration and a reduction in criticized classified loans. Flagstar Bank NA (NYSE:FLG) demonstrated disciplined expense management, with operating expenses declining by 3% quarter-over-quarter. The bank experienced an increase in net charge-offs to $100 million, although half of these were previously reserved for. Flagstar Bank NA (NYSE:FLG) adjusted its interest income guidance downward due to increased multifamily and CRE payoffs, impacting short-term interest income and net interest margin (NIM). Non-accrual loan balances are expected to be slightly higher than previously forecasted, affecting credit quality. The higher-for-longer interest rate environment is impacting mortgage gain on sale revenues, leading to a reduction in non-interest income. Despite strong deposit growth, the bank's deposit growth was primarily from interest-bearing deposits, affecting interest income and NIM. Warning! GuruFocus has detected 6 Warning Signs with FLG. Is FLG fairly valued? Test your thesis with our free DCF calculator. Q: Can you talk about how you're balancing capital priorities between growth and buybacks given your excess capital level? A: We are observing three variables: growth in core earnings, credit quality trends, and balancing CRE payoffs with capital needed for C&I growth. These factors guide our decisions on capital allocation, including share buybacks. - Joseph Adding, CEO Q: How should we think about C&I loan growth going forward given the strong pipeline? A: We expect consistent loan growth similar to the second quarter. We are onboarding new hires and expanding into new geographies and verticals, which should sustain momentum. - Rich Raffetto, Co-President and Chief Banking Officer Q: Is the June NIM of 2.19% a floor going forward, and what are the drivers for NIM expansion? A: Yes, June's NIM is considered a floor. Drivers for expansion include balance sheet growth, multifamily loan resets, C&I loan growth at market rates, and reducing non-accrual loans. - Lee Smith, Co-President and CFO Q: What is your forecast for net charge-offs and non-accrual loan reductions? A: We expect non-accrual loans to reduce by $450 million to $500 million by year-end. Net charge-offs were $99 million this quarter, with $47 million already reserved. - Lee Smith, Co-President and CFO Q: How are you addressing the impact of the New York City rent-stabilized rent freeze on your portfolio? A: We have modeled potential impacts and adjusted our reserves accordingly. We believe we are adequately covered for any valuation risks associated with the rent freeze. - Joseph Adding, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

ANNOUNCES $250 MILLION SHARE REPURCHASE PROGRAM THIRD CONSECUTIVE QUARTER OF PROFITABILITY AS PRE-PROVISION NET REVENUES INCREASED $34 MILLION ON AN UNADJUSTED BASIS AND $21 MILLION ON AN ADJUSTED BASIS COST OF DEPOSITS DECLINED FIVE BASIS POINTS, WHILE TOTAL DEPOSITS INCREASED NEARLY $700 MILLION IN THE SECOND QUARTER AND APPROXIMATELY $1.5 BILLION YEAR-TO-DATE BALANCE SHEET GREW APPROXIMATELY $600 MILLION DRIVEN BY SOLID CORE C&I LOAN AND DEPOSIT GROWTH FROM CONTINUED EXPANSION OF THE COMMERCIAL BANKING PLATFORM C&I LOANS INCREASED $2.0 BILLION OR 12% QUARTER OVER QUARTER DRIVEN BY STRATEGIC FOCUS AREAS CONTINUED EXPENSE DISCIPLINE WITH OPERATING EXPENSES DOWN 3% COMPARED TO PRIOR QUARTER; POSITIVE OPERATING LEVERAGE OF 7% CRE PAR PAYOFFS TOTALED $1.1 BILLION, OF WHICH 39% WERE SUBSTANDARD; CRE CONCENTRATION RATIO IMPROVED TO 350% COMPARED TO 367% LAST QUARTER CET1 CAPITAL RATIO OF 13.16% Hicksville, N.Y., July 24, 2026 /PRNewswire/ -- Flagstar Bank, N.A. (the "Bank") (NYSE: FLG), today reported second quarter 2026 net income of $34 million compared to net income of $21 million for first quarter 2026 and compared to a net loss of $70 million for second quarter 2025. Second quarter 2026 net income attributable to common stockholders was $26 million, or $0.06 per diluted share, compared to net income attributable to common stockholders of $13 million, or $0.03 per diluted share in first quarter 2026 and compared to a net loss attributable to common stockholders of $78 million, or $0.19 per diluted share in second quarter 2025. For the six months ended June 30, 2026, the Bank reported net income of $55 million compared to a net loss of $170 million for the six months ended June 30, 2025. Net income attributable to common stockholders for the six months ended June 30, 2026 was $39 million or $0.08 per diluted share compared to a net loss attributable to common stockholders of $186 million or $0.45 per diluted share for the six months ended June 30, 2025. NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS - AS ADJUSTED On an adjusted basis, which excludes a $4 million gain on sale related to our equity investment in Figure Technology Solutions, Inc., (the "Figure Investment"), second quarter 2026 net income attributable to common stockholders was $23 million or $0.05 per diluted share compared to first quarter 2026 net income attributable to common stockholders of $20 million or $0.04 per diluted share, which excludes a $9 million fair value loss on the Figure Investment, and compared to a net loss attributable to common stockholders of $60 million or $0.14 per diluted share in second quarter 2025, which excludes $14 million of merger related expenses, $2 million of severance expenses, $7 million in lease cost acceleration related to previously disclosed branch closures, and $3 million in trailing costs related to the sale of the Bank's mortgage servicing business. For the six months ended June 30, 2026, net income attributable to common stockholders, on an adjusted basis was $43 million or $0.09 per diluted share which excludes a $5 million loss related to the Figure Investment. This compares to a net loss attributable to common stockholders, as adjusted, for the six months ended June 30, 2025 of $153 million or $0.37 per diluted share, which excludes $22 million of merger-related expenses, $2 million of severance expenses, $12 million in lease cost acceleration, and $8 million in trailing costs related to the sale of the Bank's mortgage servicing business. CEO COMMENTARY Commenting on the Bank's second quarter 2026 performance, Executive Chairman and Chief Executive Officer, Joseph M. Otting stated, "Flagstar's second quarter operating performance reflects our third consecutive quarter of profitability and improved earnings and represents continued progress on our path to transforming into a top-performing regional bank. During the quarter, we made considerable strides diversifying our balance sheet, reaching an important inflection point in asset growth, as total assets increased 3% on an annualized basis compared to the first quarter, driven by overall growth in our loan portfolio. "Total loans increased 4% annualized, driven by record C&I loan production, which more than offset the continued strategic reduction in the commercial real estate portfolio. This marks the first quarter of loan growth since the fourth quarter of 2023. C&I originations in the second quarter totaled $2.8 billion, while commitments were $4.2 billion. This drove a $2.0 billion or 12% increase in C&I loans to $18.6 billion compared to the previous quarter. "We also generated net deposit growth of $689 million, all of which was driven by core deposits. More importantly, $706 million of this quarter's deposit growth was C&I lending-related, as we have broadened our customer relationships in that key business. "The net interest margin was relatively consistent with the prior quarter, while we reduced our cost of deposits by five basis points and our overall cost of funds by seven basis points. Additionally, we continued to pay down our wholesale borrowings, further strengthening our funding base. "Also contributing to our improved operating performance was our continued focus on expense management, as operating expenses declined 3%, driving positive operating leverage of 7%. "Our credit quality trends remained relatively stable during the quarter. While we did see a modest increase in total non-accrual loans, the overall level of criticized and classified loans decreased, driven mainly by a 6% decline in substandard loans. "Importantly, we continue to maintain a strong capital position, with a CET1 capital ratio of 13.16% at the end of the quarter. This level of capital provides meaningful financial flexibility to support balance sheet growth, invest in our franchise, and return capital to shareholders over time. On that note, this morning we also announced the adoption of a $250 million share repurchase program. This reflects the tremendous progress we have made in executing on our strategic plan, the strength of our capital position and the positive long-term outlook for the Bank. We believe that returning capital to our shareholders through a stock buyback represents a compelling and disciplined use of our excess capital at this time. "Overall, we believe the progress we have made over the past several quarters demonstrates the effectiveness of our strategy and positions the Bank well to deliver sustainable long-term shareholder value." BALANCE SHEET SUMMARY Linked-Quarter Comparison Total assets increased $0.6 billion or 1% to $87.7 billion driven by loan growth and an increase in securities, partially offset by a decline in cash balances. Total loans and leases held for investment ("HFI") were $61.0 billion, up $0.6 billion or 1% (up 4% annualized); driven by solid growth in the C&I portfolio, partially offset by a decline in the multi-family and CRE portfolios as a result of our continued strategy of diversifying the loan portfolio. During the second quarter, we delivered broad-based loan growth across our C&I platform, while our CRE portfolio declined as part of our ongoing strategic balance sheet de-risking efforts. The CRE portfolio continued to decline with the combined multi-family and CRE portfolios declining $1.5 billion or 4% to $35.2 billion. Total deposits were $67.5 billion, up $0.7 billion or 1%, driven by increases in interest-bearing checking and money market accounts, which increased 6%, while all other categories each declined 1%. Total borrowed funds declined $0.2 billion or 2% to $10.9 billion. Wholesale borrowings, consisting of Federal Home Loan Bank of New York ("FHLB-NY") advances accounted for all of this decline and totaled $9.9 billion, down $250 million or 2%. EARNINGS SUMMARY FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 Net Interest Income, Net Interest Margin, and Average Balance Sheet Net Interest Income Second quarter 2026 net interest income totaled $440 million compared to $443 million, down $3 million or 1% compared to first quarter 2026 but rose $21 million or 5% compared to second quarter 2025. For the first six months of 2026, net interest income increased $54 million or 7% to $0.9 billion compared to $0.8 billion for the first six months of 2025. Linked-Quarter Comparison Average interest-earnings assets decreased $0.3 billion or 0.3% to $83.1 billion as a result of lower average cash balances, partially offset by growth in average loans and average securities. Average interest-bearing liabilities declined $0.1 billion or 0.2% to $65.4 billion, average borrowed funds declined 10% partially offset by a 2% increase in average interest-bearing deposits. The net interest margin decreased 2 basis points to 2.13% due to a lower average cost of funds, more than offset by a lower average asset yield. Excluding the impact from the extra day in the quarter, the net interest margin would have been 2.16%. Year-Over-Year Comparison Average interest-earning assets decreased 11% to $83.1 billion, driven by lower average cash balances due to balance sheet deleveraging. Average loans and average cash balances both declined, offset by growth in the investment securities portfolio. Average interest-bearing liabilities decreased 12% or $8.8 billion to $65.4 billion with average deposits declining 8% to $55.2 billion as the Bank significantly reduced brokered deposits throughout 2025. Average borrowings declined 27% or $3.8 billion to $10.3 billion as the Bank continued to pay down wholesale borrowings. The net interest margin increased 32 basis points driven by a lower cost of deposits and borrowings, partially offset by lower earning asset yields. Year-to-Date Comparison Average interest-earning assets declined $11.1 billion or 12% to $83.2 billion primarily due to lower average loan balances, down 9%, as we reduced CRE loans and lower average cash balances, down 60%, due to balance sheet deleveraging, partially offset by a 20% increase in average securities balances. Average interest-bearing liabilities decreased $9.7 billion or 13% to $65.5 billion due to reduction in average borrowings, down 24%, and a 10% decrease in average deposits, as we reduced higher cost funding, including brokered CDs and wholesale borrowings. The net interest margin increased 37 basis points to 2.14% due to a 65 basis point improvement in the average cost of funds. Provision for Credit Losses Linked-Quarter Comparison For the second quarter 2026, we reported a provision for credit losses of $18 million compared to no provision in first quarter 2026. The increase was primarily driven by growth in the C&I portfolio, higher charge-offs and updates to assumptions related to recent New York City rent-regulated multi-family developments, partially offset by strategic reductions in the multi-family and CRE portfolios. Net charge-offs for the second quarter 2026 totaled $100 million, up $22 million or 28%. Net charge-offs on an annualized basis represented 0.66% of average loans outstanding, compared to 0.52% for first quarter 2026. Year-Over-Year Comparison The provision for credit losses decreased $46 million or 72% primarily due to the continued decline in multi-family and CRE loan balances. Net charge-offs declined $17 million or 15%. Year-to-Date Comparison For the first six months of 2026, the provision for credit losses totaled $18 million compared to $143 million for the first six months of 2025, down $125 million or 87%. The decrease was primarily due to strategic reductions in the multi-family and CRE portfolios and lower net charge-offs. Net charge-offs totaled $178 million compared to $232 million. Net charge-offs represented 0.59% of average loans outstanding compared to 0.70%. Pre-Provision Net Revenue The table below details the Bank's pre-provision net revenue ("PPNR") and PPNR, as adjusted, which are non-GAAP measures, for the periods noted: For second quarter 2026, PPNR totaled $66 million compared to PPNR of $32 million for first quarter 2026 and a pre-provision net loss of $17 million for second quarter 2025. Linked-Quarter Comparison Second quarter PPNR was $66 million compared to $32 million, up 106%. Excluding the impact from the Figure Investment in both quarters would have resulted in a PPNR of $62 million compared to $41 million up 51%. Majority of the increase was due to a decline in non-interest expenses, down 3%. Year-Over-Year Comparison Second quarter 2026 PPNR increased $83 million compared to a pre-provision net loss of $17 million in the year-ago quarter. Excluding the impact from the Figure Investment and several other one-time items in the year ago quarter, adjusted PPNR was $62 million compared to $9 million in the year-ago quarter. Majority of the increase was due to lower non-interest expense and higher net interest income. Year-to-Date Comparison PPNR was $98 million compared to pre-provision net loss of $59 million. The first six months of 2026 PPNR included a $5 million loss related to the Figure Investment. As adjusted, pre-provision net revenue was $103 million for the first six months of 2026 compared to a pre-provision net loss of $15 million for the first six months of 2025, which excludes $22 million of merger-related expenses, $2 million in severance, $12 million in lease cost acceleration, and $8 million in trailing mortgage sale costs. Non-Interest Income Non-interest income in second quarter 2026 was $76 million, up $21 million or 38% compared to $55 million in first quarter 2026 and down $1 million or 1% compared to second quarter 2025. Linked-Quarter Comparison Second quarter 2026 adjusted non-interest income increased $8 million or 13%, excluding the impact from the Figure Investment. Quarter-over-quarter improvement was driven by increases in fee income, driven by increased treasury management and capital markets income, BOLI, and other income. Year-Over-Year Comparison Second quarter 2026 adjusted non-interest income declined $5 million or 6%, excluding the impact from the Figure Investment. The year-over-year decline was a result of lower net gain on loan sales income and other income. This was due to the sale of the Bank's mortgage servicing and third-party origination business, offset by higher levels of fee income and BOLI. For the first six months of 2026, non-interest income totaled $131 million compared to $157 million for the first six months of 2025. Year-to-Date Comparison For the first six months of 2026, non-interest income includes the aforementioned $5 million net loss on the sale of our Figure Investment. As adjusted, non-interest income for the first six months of 2026 was $136 million compared to $157 million for the first six months of 2025, a $21 million or 13% decline. The year-over-year decline was driven by a decline in the net gain on loan sales and securitizations and a decrease in other income. This was partially offset by an increase in fee income. Non-Interest Expense Second quarter 2026 operating expenses were $427 million compared to $441 million in first quarter 2026, down $14 million or 3%, and they declined $45 million or 10% compared to second quarter 2025. Linked-Quarter Comparison Adjusted operating expenses decreased $14 million or 3%. The main drivers were decreases in compensation and benefits, occupancy and equipment, and professional fees. Year-Over-Year Comparison Adjusted operating expenses decreased $33 million or 7%. Main drivers were decreases in FDIC insurance expense, compensation and benefits, professional services, and general and administrative expense. For the first six months of 2026, operating expenses totaled $868 million, down $100 million or 10% compared to the first six months of 2025. Year-to-Date Comparison The first six months of 2025 results include a number of notable items, including $22 million in merger expenses, $2 million in severance costs, $12 million of lease cost acceleration, and $8 million in trailing mortgage sale costs. As adjusted for these items operating expenses for the first six months of 2026 were $868 million compared to $946 million for first six months of 2025, down $78 million or 8%. On an adjusted basis, the year-over-year improvement was primarily driven by decreases in compensation and benefits expense, FDIC insurance expense, general and administrative expense, and occupancy and equipment expense. Income Taxes Linked-Quarter Comparison For the second quarter 2026, the Bank reported income tax expense of $14 million compared to a tax expense of $11 million for the first quarter 2026. The effective tax rate for the second quarter 2026 was 28.2% compared to 34.9% for the first quarter 2026. Year-Over-Year Comparison For the second quarter 2026, the Bank reported income tax expense of $14 million compared to a tax benefit of $11 million for the second quarter 2025. The effective tax rate for the second quarter 2026 was 28.2% compared to 12.9% for the second quarter 2025. Year-to-Date Comparison For the first six months of 2026, the Bank reported an income tax expense of $25 million compared to an income tax benefit of $32 million for the first six months of 2025. The effective tax rate for the first six months of 2026 was 30.9% compared to 15.9% for the first six months of 2025. CREDIT QUALITY Non-Accrual Loans At June 30, 2026, total non-accrual loans, including held-for-sale, were $2,805 million, up $123 million or 5% compared to $2,682 million at March 31, 2026, but down $379 million or 12% compared to June 30, 2025. Total non-accrual loans HFI to total loans HFI were 4.59% at June 30, 2026 compared to 4.43% at March 31, 2026 and 4.96% at June 30, 2025. Linked-Quarter Comparison Multi-family non-accrual loans increased 5%, while CRE non-accrual loans rose 7%. NPAs to total assets rose 12 basis points to 3.20%. Year-Over-Year Comparison Multi-family non-accrual loans declined 11% and CRE non-accrual loans declined 16%, reflecting ongoing proactive workout and resolution strategies. NPAs to total assets improved 26 basis points. Total Allowance for Credit Losses The total allowance for credit losses including the allowance for unfunded commitments was $925 million at June 30, 2026 compared to $1,007 million at March 31, 2026 and $1,162 million at June 30, 2025. The total allowance for credit losses on loans and leases at June 30, 2026 was $869 million compared to $954 million at March 31, 2026 and $1,106 million at June 30, 2025. The decrease was primarily due to charged-off loans which had specific reserves and pay offs in our multi-family and CRE portfolios, partially offset by growth in our C&I portfolio. The total allowance for credit losses to total loans HFI at June 30, 2026 was 1.52% compared to 1.67% at March 31, 2026 and 1.81% at June 30, 2025. The total allowance for credit losses on loans and leases to total loans HFI was 1.42% at June 30, 2026 compared to 1.58% at March 31, 2026 and 1.72% at June 30, 2025. CAPITAL POSITION The Bank's regulatory capital ratios continue to exceed regulatory minimums to be classified as "Well Capitalized," the highest regulatory classification. The table below depicts the Bank's regulatory capital ratios at those respective periods. Flagstar Bank, N.A. Flagstar Bank, N.A. is one of the largest regional banks in the country and is headquartered in Hicksville, New York. At June 30, 2026, the Bank had $87.7 billion of assets, $61.2 billion of loans, deposits of $67.5 billion, and total stockholders' equity of $8.1 billion. Flagstar Bank, N.A. operates approximately 340 locations across nine states, with strong footholds in the greater New York/New Jersey metropolitan region and in the upper Midwest, along with a significant presence in fast-growing markets in Florida and the West Coast. Post-Earnings Release Conference Call The Bank will host a conference call on July 24, 2026 at 8:00 a.m. (Eastern Time) to discuss its second quarter 2026 performance. The conference call may be accessed by dialing (888) 596-4144 (for domestic calls) or (646) 968-2525 (for international calls) and providing the following conference ID: 5857240. The live webcast will be available at ir.flagstar.com under Events. A replay will be available approximately three hours following completion of the call through 11:59 p.m. on July 28, 2026 and may be accessed by calling (800) 770-2030 (domestic) or (609) 800-9909 (international) and providing the following conference ID: 5857240. In addition, the conference call will be webcast at ir.flagstar.com and archived through 5:00 p.m. on August 21, 2026. Investor Contact: Salvatore J. DiMartino (516) 683-4286 Media Contact: Jessica Torchia (248) 312-6451 Cautionary Statements Regarding Forward-Looking Language This earnings release and the associated conference call may include forward‐looking statements by us and our authorized officers pertaining to such matters as our goals, beliefs, intentions, and expectations regarding, among other things: (a) revenues, earnings, loan production, asset quality, liquidity position, capital levels, risk analysis, divestitures, acquisitions, and other material transactions, among other matters; (b) the future costs and benefits of the actions we may take; (c) our assessments of credit risk and probable losses on loans and associated allowances and reserves; (d) our assessments of interest rate and other market risks; (e) our ability to achieve profitability goals within projected timeframes and to execute on our strategic plan, including the sufficiency of our internal resources, procedures and systems; (f) our ability to execute our capital management strategies, including our ability to complete our current stock repurchase program and to implement future stock repurchase programs; (g) our ability to attract, incentivize, and retain key personnel and the roles of key personnel; (h) our ability to achieve our financial and other strategic goals, including those related to our recent holding company reorganization, which was completed in October 2025 (the "Reorganization"), our merger with Flagstar Bancorp, Inc., which was completed in December 2022, our acquisition of substantial portions of the former Signature Bank through an FDIC-assisted transaction, which was completed in March 2023, and our ability to comply with the heightened regulatory standards with respect to governance and risk management programs to which we are subject as a national bank with assets of $50 billion or more; (i) the impact of the $1.05 billion capital raise we completed in March 2024; (j) the conversion or exchange of shares of our preferred stock; (k) the payment of dividends on shares of our capital stock, including adjustments to the amount of dividends payable on shares of our preferred stock; (l) the dilution of existing equity holders associated with future equity awards and stock issuances; (m) the effects of the reverse stock split we effected in July 2024; and (n) the impact of the 2024 sale of our mortgage servicing operations, third party mortgage loan origination business, and mortgage warehouse business. Forward‐looking statements are typically identified by such words as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "should," "confident," and other similar words and expressions, and are subject to numerous assumptions, risks, and uncertainties, which change over time. Additionally, forward‐looking statements speak only as of the date they are made; we do not assume any duty, and do not undertake, to update our forward‐looking statements. Furthermore, because forward‐looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in our statements, and our future performance could differ materially from our historical results. Our forward‐looking statements are subject to, among others, the following principal risks and uncertainties: general economic conditions and trends, either nationally or locally; conditions in the securities, credit and financial markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of our loan or investment portfolios, including associated allowances and reserves; changes in future allowance for credit losses, including changes required under relevant accounting and regulatory requirements; the ability to pay future dividends; the ability to implement future stock repurchase programs, which are subject to the approval of the Board of Directors and other various factors, including the Bank's liquidity, capital position, and financial performance, accounting, and regulatory considerations as well as general market conditions; changes in our capital management and balance sheet strategies and our ability to successfully implement such strategies; our ability to achieve the anticipated benefits of the Reorganization; changes in our Board of Directors and our executive management team; changes in our strategic plan, including changes in our internal resources, procedures and systems, and our ability to successfully implement such plan; changes in competitive pressures among financial institutions or from non‐financial institutions; changes in legislation, regulations, and policies; changes relating to rent regulation and housing, including recent legislative action in New York City to freeze rents on certain rent-regulated properties; the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; the outcome of federal, state, and local elections and the resulting economic and other impact on the areas in which we conduct business; the impact of changing political conditions or federal government shutdowns; the imposition of restrictions on our operations by bank regulators; the outcome of pending or threatened litigation, or of investigations or any other matters before regulatory agencies, whether currently existing or commencing in the future; our ability to comply with heightened regulatory standards with respect to governance and risk management programs to which we are subject as a national bank with assets of $50 billion or more; the restructuring of our mortgage business; our ability to achieve anticipated cost savings and enhanced efficiencies with respect to our balance sheet and expense reduction s...trategies; the impact of failures or disruptions in or breaches of our operational or security systems, data or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns; the impact of natural disasters, extreme weather events, civil unrest, international military conflict, terrorism or other geopolitical events; and a variety of other matters which, by their nature, are subject to significant uncertainties and/or are beyond our control. Our forward-looking statements are also subject to the following principal risks and uncertainties with respect to our merger with Flagstar Bancorp, which was completed in December 2022, and our acquisition of substantial portions of the former Signature Bank through an FDIC-assisted transaction, which was completed in March 2023: the possibility that the anticipated benefits of the transactions will not be realized when expected or at all; the possibility of increased legal and compliance costs, including with respect to any litigation or regulatory actions related to the business practices of acquired companies or the combined business; diversion of management's attention from ongoing business operations and opportunities; the possibility that we may be unable to achieve expected synergies and operating efficiencies in or as a result of the transactions within the expected timeframes or at all; and revenues following the transactions may be lower than expected. More information regarding some of these factors is provided in the Risk Factors section of our Annual Report on Form 10‐K for the year ended December 31, 2025, and in other reports we file with the Office of the Comptroller of the Currency (the "OCC") and voluntarily file with the Securities and Exchange Commission (the "SEC"), and which are also available on our Investor Relations website. Our forward‐looking statements may also be subject to other risks and uncertainties, including those we may discuss in this news release, on our conference call, during investor presentations, or in our securities disclosure filings. All such files are accessible on our website at ir.flagstar.com, on the OCC's website at www.occ.gov, and on the SEC's website at www.sec.gov. - Financial Statements and Highlights Follow - FLAGSTAR BANK, N.A.RECONCILIATIONS OF CERTAIN GAAP AND NON-GAAP FINANCIAL MEASURES In addition to GAAP measures, management considers various non-GAAP measures when evaluating the performance of the business. We believe that non-interest income, operating expenses, pre-provision net (loss) revenue (which includes both non-interest income and non-interest expense), net income (loss), net income (loss) attributed to common stockholders, diluted earnings (loss) per share, the net interest margin, and our efficiency ratio as adjusted for items that we believe are not indicative of core operating results, such as but not limited to merger and restructuring expenses, litigation settlement expenses related to cases prior to the acquisition of Flagstar Bank, NA, fair value adjustments on non-core equity investments, as well as adjustments for severance and impairment charges and other exit costs resulting from strategic shifts in our operations provide valuable insights to investors by highlighting our underlying performance. These non-GAAP metrics also facilitate meaningful comparisons to other financial institutions, as they are widely used and frequently referenced by investors and analysts. We believe average tangible common stockholders' equity, tangible common stockholders' equity, average tangible assets and tangible book value per share are important measures for evaluating the performance of the business without the impact of our intangible assets. These non-GAAP metrics also provide investors with important indications regarding our ability to grow the business, our ability to pay dividends as well as engage in capital strategies in addition to facilitating meaningful comparisons to other financial institutions, as they are widely used and frequently referenced by investors and analysts. These non-GAAP measures should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. Moreover, the way we calculate these non-GAAP measures may differ from that of other companies reporting non-GAAP measures with similar names. The following tables reconcile the above the non-GAAP financial measures we use to their comparable GAAP financial measures, to the extent not reconciled earlier in this earnings release, for the stated periods: The following table summarizes the Bank's net charge-offs (recoveries) for the respective periods: View original content to download multimedia:https://www.prnewswire.com/news-releases/flagstar-bank-reports-second-quarter-2026-net-income-attributable-to-common-stockholders-of-0-06-per-diluted-share-and-adjusted-net-income-attributable-to-common-stockholders-of-0-05-per-diluted-share-302833845.html

Flagstar Bank (FLG) came out with quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.06 per share. This compares to a loss of $0.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -16.67%. A quarter ago, it was expected that this bank holding company would post earnings of $0.03 per share when it actually produced earnings of $0.04, delivering a surprise of +33.33%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Flagstar Bank, which belongs to the Zacks Banks - Southeast industry, posted revenues of $516 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 5.3%. This compares to year-ago revenues of $496 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Flagstar Bank shares have added about 16.8% since the beginning of the year versus the S&P 500's gain of 8.2%. While Flagstar Bank has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Flagstar Bank was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.13 on $588.31 million in revenues for the coming quarter and $0.43 on $2.27 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, OptimumBank Holdings, Inc. (OPHC), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of -31%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. OptimumBank Holdings, Inc.'s revenues are expected to be $14.2 million, up 17.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Flagstar Bank, National Association (FLG) : Free Stock Analysis Report OptimumBank Holdings, Inc. (OPHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Flagstar Bank, National Association? Here are five stocks we like better. Flagstar posted its third consecutive quarter of profitability, with GAAP earnings of $0.06 per diluted share and adjusted earnings of $0.05, helped by C&I loan growth, deposit growth and lower operating expenses. The bank announced a $250 million share-repurchase program and ended the quarter with a strong 13.16% CET1 capital ratio, leaving about $1.6 billion of excess capital above its target range. Commercial-and-industrial lending drove balance-sheet expansion, with C&I loans up $2 billion, or 12% quarter over quarter, while Flagstar continued to shrink CRE and multifamily exposure and raised its 2026 and 2027 EPS outlook to $0.40-$0.50 and $1.60-$1.70, respectively. Flagstar Bank, National Association (NYSE:FLG) reported its third consecutive quarter of profitability in the second quarter of 2026, as commercial-and-industrial loan growth, deposit growth and lower operating expenses helped offset continued runoff in commercial real estate and multifamily lending. The bank reported GAAP net income attributable to common stockholders of $0.06 per diluted share, while adjusted earnings were $0.05 per diluted share. That compared with an adjusted loss of $0.14 per share in the second quarter of 2025, according to Executive Chairman and Chief Executive Officer Joseph Otting. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Flagstar also announced a $250 million share-repurchase program. Chief Financial Officer Lee Smith said the bank ended the quarter with a common equity tier 1 capital ratio of 13.16%, which he described as among the strongest levels in the regional-bank peer group. The company said it had about $1.6 billion of excess capital after tax relative to the low end of its target CET1 operating range. Total balance-sheet growth resumed during the quarter, rising by roughly $600 million from the prior quarter, the first overall balance-sheet growth since 2023. Smith said the balance sheet would have increased by more than $800 million had the company not paid down $250 million of Federal Home Loan Bank advances. → GE Vernova Just Sent a Mixed AI Signal to Investors Commercial-and-industrial loans increased by $2 billion, or 12% quarter over quarter, to $18.6 billion. The company generated $4.2 billion in new and increased credit commitments, leading to a record $2.8 billion in C&I loan originations. Rich Raffetto, co-president, co-chief operating officer and chief banking officer, said Flagstar added 75 new-to-bank C&I relationships and hired 32 producers and credit underwriters during the quarter. The company’s C&I pipeline entering the third quarter stood at more than $2 billion in commitments. → D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? Specialized Industries Banking and Corporate and Regional Commercial Banking together produced $2.1 billion of end-of-period loan growth. Raffetto cited activity in energy, financial institutions, healthcare, technology, sports and entertainment, large corporate diversified banking, and regional commercial banking in New York and Southern California. The bank also expanded its commercial platform through new team leadership in Dallas, Detroit, Cleveland and Phoenix, launched a Texas regional commercial banking initiative, and added specialized-industry verticals in food and beverage, leisure, hospitality and gaming, and education and nonprofits. Core deposits excluding brokered deposits rose $700 million in the second quarter and were up about $1.8 billion in the first half of 2026. Commercial and private-bank deposits increased approximately $900 million, partly offset by a $290 million decline in retail deposits. Despite the growth in interest-bearing deposits, Flagstar reduced the cost of interest-bearing deposits by five basis points from the prior quarter and by 65 basis points from a year earlier. Smith said the bank retained roughly 85% of $4.8 billion in retail certificates of deposit that matured during the quarter, with retained balances moving into CD products priced about 15 to 25 basis points below the maturing CDs. Another $4.4 billion of retail CDs with a weighted-average cost of 3.87% are scheduled to mature in the third quarter. Smith said Flagstar’s all-in spot cost of deposits, including noninterest-bearing and brokered deposits, was approximately 2.49% at quarter-end. Net interest margin was 2.13% in the second quarter, versus 2.15% in the first quarter. Excluding the effect of an additional day in the quarter, management said NIM would have been 2.16%. June NIM was 2.19%, which Smith said he viewed as a floor as the bank expands its balance sheet, adds market-rate C&I loans and continues reducing lower-yielding multifamily exposure. Flagstar continued to reduce commercial real estate exposure, with multifamily and CRE balances declining $1.5 billion during the quarter. CRE balances are down $14.9 billion, or 28%, since 2023, while the CRE concentration ratio declined to 350% from 367% in the prior quarter and more than 500% when current management joined the company. CRE par payoffs totaled $1.1 billion, with 39% involving substandard-rated loans. Total multifamily and CRE payoffs reached $1.5 billion. Management said these payoffs accelerate the bank’s diversification strategy but also reduce near-term interest income and margin. The allowance for credit losses declined by $81 million, primarily because of lower CRE and multifamily balances, charge-offs and lower qualitative adjustments as more appraisals became available. Criticized and classified loans fell $152 million, or 1%, from the prior quarter and were down $1.1 billion, or 9%, year over year. Substandard loans declined $375 million during the quarter. Nonaccrual loans rose 5% sequentially to $2.8 billion, partly reflecting the company’s review of loans with reset or maturity dates within 18 months. Smith said approximately 40% of nonaccrual loans were current and paying, and Flagstar expects nonaccrual balances to decline to about $2.3 billion by year-end. Net charge-offs were approximately $100 million, though management said $47 million of that amount had previously been fully reserved. The company expects new C&I production to carry reserve coverage of about 1%, while runoff in CRE and multifamily includes loans with higher risk and coverage levels. Flagstar reduced its interest-income outlook for 2026 and 2027, citing faster-than-expected CRE and multifamily payoffs, a greater mix of interest-bearing deposits, somewhat higher anticipated nonaccrual balances and weaker mortgage gain-on-sale revenue in a higher-for-longer rate environment. 2026 earnings per share are forecast at $0.40 to $0.50. 2027 earnings per share are forecast at $1.60 to $1.70. Management expects total assets to end 2026 at roughly $91.5 billion to $92 billion and reach about $100 billion by the end of 2027. Otting said future capital-return decisions would depend on core earnings growth, credit trends and the balance between CRE payoffs and capital needed to support C&I expansion. Smith said the updated earnings guidance does not include the effect of the newly authorized share repurchase program. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Flagstar Bank, National Association Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Flagstar Bank, N.A. (NYSE:FLG) shares edged 1.09% lower in premarket trading after the regional lender reported second-quarter results that fell short of Wall Street expectations on both earnings and revenue, despite returning to profitability and posting higher year-on-year revenue. The latest results reflect continued progress in the bank’s turnaround strategy, although weaker-than-expected financial performance weighed on investor sentiment. Flagstar reported adjusted earnings of $0.05 per share for the second quarter, below analysts’ consensus estimate of $0.07 per share. Revenue totaled $516 million, missing market expectations of $541.97 million, although it represented a 4% increase from the $496 million reported in the same period last year. The bank generated adjusted net income attributable to common shareholders of $23 million, or $0.05 per diluted share, compared with a loss of $0.14 per diluted share a year earlier. On a GAAP basis, net income attributable to common shareholders was $26 million, equivalent to $0.06 per diluted share. Net interest income increased 5% year-on-year to $440 million, although it declined 1% compared with the previous quarter. The bank’s net interest margin narrowed slightly by two basis points from the first quarter to 2.13%. Adjusted pre-provision net revenue rose sharply to $62 million, up 51% from $41 million in the previous quarter, reflecting improving operating performance. “Flagstar’s second quarter operating performance reflects our third consecutive quarter of profitability and improved earnings and represents continued progress on our path to transforming into a top-performing regional bank,” said Executive Chairman and CEO Joseph M. Otting. Total loans increased by $562 million during the quarter to reach $61.0 billion, representing annualised growth of 4%. Commercial and industrial lending remained a key driver, with C&I loans rising $2.0 billion, or 12%, to $18.6 billion. Deposits also continued to expand, increasing by $689 million, or 1%, to $67.5 billion. Meanwhile, operating expenses declined 3% year-on-year to $427 million, supporting the bank’s ongoing efficiency initiatives. Alongside its quarterly results, Flagstar announced a new $250 million share repurchase programme, signalling confidence in its capital position. The bank also maintained a Common Equity Tier 1 (CET1) capital ratio of 13.16%, providing a solid capital buffer as management continues to execute its long-term transformation strategy. Flagstar Financial stock price

For the quarter ended June 2026, Flagstar Bank (FLG) reported revenue of $516 million, up 4% over the same period last year. EPS came in at $0.05, compared to -$0.14 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $544.89 million, representing a surprise of -5.3%. The company delivered an EPS surprise of -16.67%, with the consensus EPS estimate being $0.06. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Flagstar Bank performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Book value per common share (GAAP): $18.31 versus $18.21 estimated by five analysts on average. Net Interest Margin: 2.1% versus 2.3% estimated by five analysts on average. Efficiency Ratio: 87.1% versus the four-analyst average estimate of 81.1%. Net charge-offs to average loans: 0.7% versus the four-analyst average estimate of 0.3%. Average Balances - Interest earning assets: $83.05 billion versus the four-analyst average estimate of $83.26 billion. Total Non-performing loans: $2.8 billion versus the two-analyst average estimate of $2.44 billion. Total risk-based capital ratio: 16.6% versus the two-analyst average estimate of 16.5%. Tier 1 risk-based capital ratio: 14% versus the two-analyst average estimate of 13.9%. Total Nonperforming Assets: $2.81 billion versus $2.45 billion estimated by two analysts on average. Leverage Capital Ratio: 9.7% compared to the 9.6% average estimate based on two analysts. Net Interest Income: $440 million compared to the $471.21 million average estimate based on five analysts. Total non-interest income (loss): $76 million compared to the $75.17 million average estimate based on five analysts. View all Key Company Metrics for Flagstar Bank here>>> Shares of Flagstar Bank have returned -2.9% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Flagstar Bank, National Association (FLG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research