FLG
Flagstar Bank shares slip after second-quarter earnings and revenue miss expectations
Article Summary
HOLD- Flagstar Bank, N.A. (NYSE: FLG) fell 1.09% in premarket trading after reporting weaker-than-expected earnings and revenue, despite returning to profitability and posting higher year-on-year revenue.
- The regional lender reported adjusted earnings of $0.05 per share, below analysts' expectations, while revenue totaled $516 million, missing market expectations of $541.97 million.
- Net interest income increased 5% year-over-year to $440 million, though net interest margin narrowed slightly to 2.13%, and pre-provision net revenue rose sharply to $62 million, up 51% from $41 million in the previous quarter.
- Total loans increased by $562 million during the quarter to reach $61.0 billion, representing annualised growth of 4%, with commercial and industrial lending remaining a key driver, while C&I loans rose 12% to $18.6 billion.
- Deposits grew by $689 million, while operating expenses declined 3% as efficiency initiatives supported the bank's ongoing efficiency initiatives.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | -24.5% | 25% | 0.0 ptsDeclining (-24.5%) - NOT a growth stock |
| EPS Growth Next 5Y ? | 0.0% | 25% | 10.0 ptsVery Weak (0.0%) - Minimal expectations |
| Target Price Upside ? | 17.7% | 20% | 60.0 ptsModerate Upside (17.7%) - Target: $16.39 vs Current: $13.93 |
| Gross Margin % ? | — | 15% | 40.0 ptsNo Gross Margin Data |
| Drawdown from 52-Wk High ? | -9.8% | 15% | 20.0 ptsBarely a Dip (-9.8%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About FLG
- Flagstar Bank, National Association provides banking products and services in the United States.
- The company's deposit products include interest-bearing checking and money market, savings, and non-interest-bearing accounts, as well as certificates of deposit.
- It offers loan products comprising multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and home equity lines of credit, as well as other consumer loans, including overdraft loans.
- The company offers non-deposit investment and insurance products; and online and mobile banking services.
- It primarily serves individuals, small and mid-size businesses, and professional associations.
- The company was formerly known as Flagstar Financial, Inc.
- Flagstar Bank, National Association was founded in 1859 and is headquartered in Hicksville, New York.