Flagstar Financial climbs after forecasting smaller annual loss

Flagstar Bank, National Association

30/01/2025 12:53

(Updates)
    ** Shares of regional lender Flagstar Financial  FLG.N  rise
5% to $10.08 premarket
    ** FLG expects 2025 per-share loss of 25 cents to 30 cents,
vs its prior expectations for a loss of 30 cents to 35 cents
    ** Wall Street expects FLG to post a per-share loss of 35
cents in 2025 - LSEG data      
    ** FLG, formerly known as New York Community Bancorp, had
last year delayed its profitability goal by a year to 2026    
    ** While continued margin pressure, shrinking balance sheet,
deposit trends, and charge-off activity are negative, guidance
is mostly intact or slightly improved - Stephens analyst Matt
Breese
    ** Meanwhile, FLG's Q4 net loss narrows to $168 mln, or 41
cents/share, compared with $2.71 bln, or $11.27/share, a year
earlier
    ** Provision for credit losses shrunk 80% to $108 mln,
thanks to lower net charge-offs and a decline in loans
held-for-investment
    ** Net charge-offs are debts that are unlikely to be
recovered
    ** "Perhaps our most important accomplishment this year is
the improvement in our capital position," CEO Joseph Otting says
    ** FLG shares slumped 69.6% in 2024


 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))