Flagstar Bank's Q3 net loss narrows, interest margin improves

Flagstar Bank, National Association

24/10/2025 11:11

Overview

Flagstar Q3 net loss narrows to $36 mln, adjusted EPS at -$0.07

Net interest margin improves 10 basis points to 1.91%

Credit loss provision decreases 41% as credit quality stabilizes

Outlook

Flagstar did not provide specific guidance for future quarters or the full year

Result Drivers

C&I LOAN GROWTH - Flagstar reported a 3% increase in C&I loans, driven by a 41% rise in new loan originations and a 26% increase in new commitments

CREDIT QUALITY IMPROVEMENT - Provision for credit losses decreased 41% as credit quality showed signs of stabilization and net charge-offs decreased 38%

REORGANIZATION BENEFITS - Completed holding company reorganization to simplify corporate structure, reduce regulatory burden, and lower operating expenses

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 ADJUSTED EPS
-$0.07
Q3 EPS
-$0.11
Q3 Net Income
-$36 mln
Q3 Net Interest Income
$425 mln
Q3 CREDIT LOSS PROVISION
$38 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for Flagstar Financial Inc is $14.00, about 17.4% above its October 23 closing price of $11.56

The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 56 three months ago

Press Release: ID:nPn9KJcJma

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)