Flagstar Financial (FLG)
NYSE:FLG
Want to see FLG full AI Analyst Report?
Earnings Data
Report Date
Jul 29, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.07Last Year’s EPS
-0.19Same Quarter Last Year
Moderate Buy
Based on 14 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented meaningful operational progress—notably strong C&I growth, deposit gains, NIM expansion (adjusted), expense discipline, capital strength and rating upgrades—alongside deliberate portfolio de-risking (CRE/multifamily paydowns) and remediation of controls. Headwinds are primarily timing-related: elevated CRE payoffs reduced near-term NII, allowance levels declined with portfolio shrinkage, and material 2027 loan resets (including rent-regulated multifamily) create forward-looking rollover risk. Management framed the challenges as expected elements of its strategic transition and remains confident in returning sustainable profitability and considering capital actions in the back half of the year.Company Guidance
Strong C&I Loan Growth
Net C&I loans grew $1.4 billion during the quarter, +9% linked-quarter and +12% year-over-year; C&I originations were $2.6 billion with $2.0 billion funded, demonstrating traction in the bank's strategic growth focus.
Net Interest Margin Expansion (adjusted)
Adjusted NIM increased by 10 basis points quarter-over-quarter to 2.15% (Q4 adjusted NIM 2.05%), driven primarily by lower funding costs after excluding a one-time $21 million hedge gain recognized in Q4.
Deposit Growth and Lower Funding Costs
Core deposits (excluding brokered) grew $1.1 billion (about +2% linked-quarter); cost of interest-bearing deposits declined by 21 basis points quarter-over-quarter; retained 86% of $5.3 billion maturing retail CDs into lower-cost CD products.
Improved Credit Metrics and Asset Quality
Nonaccrual loans declined by $323 million (-11% quarter-over-quarter) to $2.7 billion; criticized and classified loans decreased $385 million (-3%); substandard loans fell nearly $700 million, representing over $1 billion reduction in nonaccrual and substandard loans combined.
Capital Strength and Rating Upgrades
CET1 capital ratio ended the quarter at ~13.2%–13.24%, placing the bank among top regional peers; management reports approximately $1.6 billion of excess capital above the low end of the target operating range; Moody's and Fitch upgraded deposit ratings to investment grade (positive outlook).
Expense Discipline and Efficiency Progress
Operating expenses decreased $21 million (-5% quarter-over-quarter) to $441 million; management expects operating expenses to continue declining in 2026 and 2027 and expects a ~ $40 million annual run-rate savings after planned core consolidation.
Balance Sheet Deleveraging and Liquidity Actions
Paid down $1.0 billion of FHLB advances and $300 million of brokered deposits (total $1.3 billion deleveraging) while the balance sheet only decreased ~$400 million Q/Q; plan to buy $1.0–$1.5 billion of securities in Q2 and target securities balance ~ $16 billion.
CRE / Multifamily Exposure Reduction
CRE and multifamily portfolios declined by $1.6 billion (4%) Q/Q via payoffs; total CRE balances down $13.4 billion (-28%) since year-end 2023; multifamily down $5.5 billion (-17% YoY, -4% Q/Q), supporting the portfolio diversification goal (target ~1/3 CRE, 1/3 C&I, 1/3 consumer).
Profitability Momentum and Guidance
Bank reported profitability for the second consecutive quarter; adjusted diluted EPS improved from $0.03 in Q4 to $0.04 in Q1. Management provided adjusted EPS guidance of $0.60–$0.65 for 2026 and $1.80–$1.90 for 2027.
Operational Milestones Achieved
Remediated previously disclosed material weakness in internal controls (10-K filing) and consolidated six legacy data centers into two co-location centers with no customer disruption—positioning for core conversion in 2027.
FLG Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
FLG Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 24, 2026 | $14.35 | $14.03 | -2.23% |
Jan 30, 2026 | $13.53 | $13.21 | -2.37% |
Oct 24, 2025 | $11.54 | $12.09 | +4.77% |
Jul 25, 2025 | $12.02 | $11.36 | -5.47% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Flagstar Financial (FLG) report earnings?
Flagstar Financial (FLG) is schdueled to report earning on Jul 29, 2026, Before Open (Confirmed).
What is Flagstar Financial (FLG) earnings time?
Flagstar Financial (FLG) earnings time is at Jul 29, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is FLG EPS forecast?
FLG EPS forecast for the fiscal quarter 2026 (Q2) is 0.07.