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

Flagstar Bank, National Association (NYSE:FLG) announced its quarterly earnings results on Friday. The company reported $0.05 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.01), FiscalAI reports. The business had revenue of $512.00 million for 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 firm’s revenue for the quarter was up 4.0% on a year-over-year basis. During the same quarter in the prior year, the firm 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 Down 4.7%

Shares of NYSE FLG traded down $0.69 on Friday, reaching $14.03. 4,199,169 shares of the company’s stock traded hands, compared to its average volume of 4,991,506. 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 business’s 50 day simple moving average is $14.50 and its two-hundred day simple moving average is $13.80. Flagstar Bank, National Association has a 12 month low of $10.57 and a 12 month high of $15.44. The company has a market cap of $5.85 billion, a price-to-earnings ratio of -63.37 and a beta of 1.01.

Flagstar Bank, National Association Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Sunday, June 7th were paid a dividend of $0.01 per share. The ex-dividend date of this dividend 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 (DPR) is currently -18.18%.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on FLG shares. 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 report on Monday, June 29th. Barclays raised their target price on shares of Flagstar Bank, National Association from $16.00 to $17.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 7th. TD Cowen raised shares of Flagstar Bank, National Association from a “hold” rating to a “buy” rating and lifted their target price for the company from $15.00 to $18.00 in a research note on Monday, July 6th. Citigroup boosted their price target on shares of Flagstar Bank, National Association from $17.00 to $18.00 and gave the company a “buy” rating in a research report on Thursday, June 25th. Finally, Truist Financial raised shares of Flagstar Bank, National Association from a “hold” rating to a “buy” rating and increased their price target for the stock from $13.50 to $17.00 in a research note on Tuesday, April 7th. Nine investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $16.96.

Institutional Investors Weigh In On Flagstar Bank, National Association

A number of institutional investors have recently modified their holdings of the stock. DV Equities LLC bought a new position in shares of Flagstar Bank, National Association during the fourth quarter valued at $25,000. Litman Gregory Wealth Management LLC purchased a new stake in shares of Flagstar Bank, National Association during the fourth quarter valued at approximately $34,000. Advisory Services Network LLC bought a new stake in shares of Flagstar Bank, National Association during the third quarter valued at approximately $35,000. Kemnay Advisory Services Inc. bought a new stake in shares of Flagstar Bank, National Association during the fourth quarter valued at approximately $42,000. Finally, Geneos Wealth Management Inc. purchased a new position in Flagstar Bank, National Association in the 1st quarter worth approximately $45,000. 67.88% of the stock is owned by hedge funds and other institutional investors.

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.