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/Mis Actual Consensu

s s

Estimate

Q3 -$0.07

ADJUSTED

EPS

Q3 EPS -$0.11

Q3 Net -$36 mln

Income

Q3 Net $425 mln

Interest

Income

Q3 $38 mln

CREDIT

LOSS

PROVISIO

N

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 ( FLG/PU ) 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:

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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.)