Flagstar Financial reports Q2 EPS (19c), consensus (13c)

Reports Q2 revenue $496M, consensus $522.05M. Reports Q2 tangible book value per share $17.24. Reports Q2 CET1 capital ratio 12.33%. Commenting on the company’s second quarter performance, chairman, president, and CEO, Joseph Otting stated, “I am very pleased with the progress the Company made during the second quarter across multiple fronts as we continued to execute on our successful strategy of transforming Flagstar into a top-performing, well-diversified regional bank. We made further gains on our C&I and Private Bank growth strategy, our credit quality metrics continue to improve, we continued to lower our operating expenses, reduced our commercial real estate exposure, and we also increased our net interest margin. As a result, our earnings profile during the quarter improved, as the second quarter net loss narrowed significantly compared to both the second quarter of last year and the first quarter of this year, while our net revenues, pre-provision for loan losses, turned positive during the quarter. This bodes well for our expected return to profitability in the fourth quarter of this year.”