Core Viewpoint - Flagstar Financial, Inc. reported a net loss of $100 million for Q1 2025, an improvement from previous quarters, indicating progress towards profitability and strategic transformation into a top-performing regional bank [1][2][6]. Asset Quality - Total allowance for credit losses (ACL) was $1,215 million, representing 1.82% of total loans held for investment (HFI), a slight decrease from 1.83% in the previous quarter [1][43]. - Criticized loans declined by $885 million or 6% compared to the prior quarter [1]. - Non-accrual loans held for investment increased to $3,280 million, up 25% from the previous quarter [37]. Loans, Deposits, and Funding - Total loans and leases held for investment decreased by $1.7 billion or 2% to $66.6 billion [8]. - Multi-family loans decreased by $656 million or 2% to $33.4 billion, while commercial real estate (CRE) loans decreased by $326 million or 3% to $11.5 billion [8]. - Total deposits were $73.9 billion, a decrease of $2.0 billion or 3% linked-quarter [13]. Capital - The Common Equity Tier 1 (CET1) capital ratio improved to 11.9%, exceeding peer group levels [1][45]. - Book value per common share was $18.43, and tangible book value per share was $17.33 [1]. Liquidity - The company maintained ample liquidity of $30 billion, representing 231% coverage on uninsured deposits [1][45]. - Available borrowing capacity was $18.1 billion, supported by high-quality liquid assets [1]. Earnings Summary - Net interest income for Q1 2025 was $410 million, down 11% from Q4 2024, primarily due to a smaller balance sheet [17]. - Non-interest income totaled $80 million, a significant decrease from $164 million in the previous quarter [29]. - Total revenues decreased by 22% to $490 million compared to the previous quarter [28]. Non-Interest Expense - Non-interest expense totaled $532 million, down 26% linked-quarter and 24% year-over-year [33]. - Adjusted non-interest expenses were $485 million, reflecting a 13% decrease linked-quarter [34]. Credit Quality - Net charge-offs for Q1 2025 totaled $115 million, down 48% from the previous quarter [27]. - The provision for credit losses decreased by $66 million compared to the previous quarter, attributed to lower net charge-offs [26]. Strategic Focus - The company aims to improve its earnings profile, manage commercial real estate exposure, and enhance credit quality [3][6]. - The addition of 15 bankers to the commercial lending team reflects ongoing efforts to strengthen the business [4].

Company Overview - Flagstar Financial (FLG) is expected to report a quarterly loss of $0.26 per share, reflecting a year-over-year change of +65.3% [3] - Revenues are anticipated to be $522.36 million, down 17.5% from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for April 25, 2025, and could influence stock movement based on whether the results exceed or fall short of expectations [2] - The consensus EPS estimate has been revised 5.88% higher in the last 30 days, indicating a more optimistic outlook from analysts [4] Earnings Surprise Prediction - The Most Accurate Estimate for Flagstar Financial is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +9.96% [10][11] - The company currently holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [11] Historical Performance - In the last reported quarter, Flagstar Financial was expected to post a loss of $0.50 per share but actually reported a loss of $0.34, achieving a surprise of +32% [12] - Over the past four quarters, the company has only beaten consensus EPS estimates once [13] Industry Context - Atlantic Union (AUB), a peer in the Zacks Banks - Northeast industry, is expected to report earnings per share of $0.69 for the same quarter, with a year-over-year change of +6.2% [17] - Atlantic Union's revenues are projected to be $220.7 million, up 24.6% from the previous year [17] - The consensus EPS estimate for Atlantic Union has been revised down by 1.8% in the last 30 days, and it currently has an Earnings ESP of 0.00% with a Zacks Rank of 4 [18]

Flagstar Financial, Inc. (NYSE: FLG ) is a stock that I began covering last June and again later in September . In both cases, I rated it a Buy on its discount to tangible book value per shareI analyze securities based on value investing, an owner's mindset, and a long-term horizon. I don't write sell articles as those are considered short theses, and I never recommend shorting.Former advisory representative at Fidelity. I do my own investing now and share my research here.Analyst’s Disclosure: I/we have no ...

HICKSVILLE, N.Y., April 2, 2025 /PRNewswire/ -- Flagstar Financial, Inc. (NYSE: FLG) (the "Company") today announced that it plans to issue results for the three months ended March 31, 2025 at approximately 6:00 a.m. Eastern Time (ET) on Friday, April 25, 2025. The earnings release and presentation will be posted to the Investor Relations portion of the Company's website, ir.flagstar.com shortly after issuance.  The Company will conduct a conference call at 8:00 a.m. (ET) on the same date, during which Chai ...

Loan and Credit Risk - As of December 31, 2024, the company's total loans and leases held for investment included $34.1 billion (49.9%) in multi-family loans and $8.7 billion (12.7%) in commercial real estate loans[163]. - The commercial real estate loan portfolio included $2.4 billion (27.7%) secured by office buildings, which may face future losses due to declining occupancy and rental rates[164]. - The concentration in multi-family and commercial real estate loans exposes the company to increased lending risks and potential loan losses[163]. - Economic weakness in the New York City metropolitan region could adversely impact the company's financial condition and results of operations[166]. - The company may need to increase its allowance for credit losses due to growth in the loan portfolio, which would reduce net income[163]. - Economic conditions could adversely affect the value of loans and securities, leading to increased loan delinquencies and potential losses[196]. Regulatory and Compliance Risks - Approximately 21.2% of the company's total deposits of $75.9 billion were not FDIC-insured as of December 31, 2024[173]. - The company is subject to comprehensive supervision and regulation by the FRB and OCC, which includes maintaining minimum capital requirements[180]. - Failure to meet capital requirements could result in limitations on the company's activities, including the ability to pay dividends and conduct business expansions[180]. - The company is classified as a Category IV banking organization, subject to enhanced liquidity risk management requirements[183]. - Non-compliance with the Bank Secrecy Act could result in significant civil monetary penalties and reputational damage[184]. - The company must comply with various consumer protection laws, including the Community Reinvestment Act, to avoid regulatory sanctions[190]. - Regulatory changes could impose additional capital or liquidity requirements, adversely affecting the company's operations and financial condition[180]. - The company is subject to regulatory capital requirements that may change, potentially leading to more stringent capital or liquidity requirements[198]. - The company faces risks related to credit loss provisions that may need to be adjusted based on regulatory reviews, potentially affecting financial results[162]. Dividend and Capital Management - The company is currently paying quarterly cash dividends at $0.01 per share, with potential regulatory changes posing risks to future dividend payments[175]. - The inability to receive dividends from the subsidiary bank could impact the company's ability to maintain or increase cash dividends to stockholders[176]. - Series B Preferred Stock dividends are payable at a rate of 13% per annum, payable quarterly and in arrears[178]. - Non-payment of dividends on Series A and Series B Preferred Stock could limit the company's ability to declare or pay dividends in the future[178]. - The company may need to raise additional capital in the future, which could dilute existing shareholders' ownership[200]. Operational and Strategic Risks - The company is undergoing significant changes in its Board of Directors and executive leadership, with multiple resignations and new appointments, which may create uncertainties for its business[213][214]. - The Board of Directors approved a new 2025-2027 Strategic Plan focused on transforming the Company into a top-tier regional bank, creating a customer-centric culture, and establishing effective risk management[215]. - The Company is pursuing a plan to diversify its loan portfolio by reducing its commercial real estate concentration, which may take considerable time and management attention[219]. - There are risks associated with the diversification process, including potential disruptions to business operations, loss of key employees, and failure to achieve anticipated benefits[220]. - The Company faces operational risks from reliance on third-party providers for key business functions, which could adversely impact service delivery and financial performance[209]. - The Company may experience challenges in integrating operations from recent acquisitions, which could hinder expected benefits[202]. Cybersecurity and Technology Risks - Cybersecurity risks have heightened, with potential breaches leading to increased expenses and reputational damage[205]. - The Company is exposed to cybersecurity risks and must maintain disclosure controls to notify investors of material incidents, which could have financial, legal, or reputational consequences[208]. - Compliance with evolving cybersecurity regulations may impose additional operational burdens and costs on the company[206]. - The Company could be adversely affected by extraordinary events beyond its control, such as natural disasters or geopolitical instabilities, impacting its financial condition and operations[225]. - The Company may face challenges in keeping pace with technological changes, which could impact its competitiveness in the market[210]. - The company's stress testing processes rely on potentially inadequate models, which could lead to unexpected losses[204]. Environmental, Social, and Governance (ESG) Risks - Increasing scrutiny on environmental, social, and governance (ESG) practices may lead to higher operational costs for the company[227]. - Failure to comply with ESG regulations could negatively impact the company's reputation and stock price[227]. - New government regulations may introduce more stringent ESG oversight and reporting requirements[227]. - Concerns over climate change may lead to changes in investor, consumer, and business behavior, affecting the company's operations[227]. - The company may face cost increases and asset value reductions due to climate change-related impacts[227]. - Creditworthiness of some customers may decline due to climate change considerations[227]. - Investors may choose not to invest in the company's securities based on climate change-related factors[227]. - The company's risk management efforts may not fully mitigate the impacts of new laws and regulations[227].

Company Overview - Flagstar Financial, Inc. is the parent company of Flagstar Bank, N.A., one of the largest regional banks in the United States, headquartered in Hicksville, New York [4] - As of December 31, 2024, the company reported total assets of $100.2 billion, loans amounting to $69.2 billion, deposits of $75.9 billion, and total stockholders' equity of $8.2 billion [4] Annual Meeting Details - The 2025 Annual Meeting of Shareholders is scheduled for June 4, 2025, to be held virtually starting at 10:00 a.m. Eastern Time [1] - The record date for voting at the Annual Meeting is set for April 7, 2025, allowing shareholders on this date to receive notice and vote [2] - Additional details regarding participation in the Annual Meeting will be provided in the Company's Proxy Statement and Notice of Annual Meeting, which will be filed with the Securities and Exchange Commission [3] Bank Operations - Flagstar Bank operates 418 branches, with a strong presence in the Northeast and Midwest, and locations in high-growth markets in the Southeast and West Coast [5] - The bank has approximately 80 private banking teams across over 10 cities in the metropolitan New York City region and on the West Coast, catering to high-net-worth individuals and their businesses [5]

Core Viewpoint - Flagstar Bank is engaging with nonprofit and community leaders to enhance its Community Reinvestment Act (CRA) strategies, focusing on actionable support for low- and moderate-income (LMI) communities [1][2][3] Group 1: Community Engagement and Strategy - The discussions aim to identify strategies for equitable access to credit, affordable housing, and sustainable economic opportunities for LMI communities [2][3] - A strategic advisory group is intended to be formalized to ensure ongoing dialogue and effective community engagement [2][7] - The initiative reflects Flagstar's commitment to not only meet regulatory requirements but also to foster sustainable growth and create lasting positive impacts in the communities served [3] Group 2: Company Overview - Flagstar Financial, Inc. is the parent company of Flagstar Bank, which is one of the largest regional banks in the U.S., with assets totaling $100.2 billion as of December 31, 2024 [4] - The bank operates 418 branches, primarily in the Northeast and Midwest, with a growing presence in the Southeast and West Coast [5]

Core Viewpoint - Flagstar Financial, Inc. has declared a quarterly cash dividend of $0.01 per share on its common stock, payable on March 17, 2025, to stockholders of record as of March 7, 2025 [1] Group 1: Company Overview - Flagstar Financial, Inc. is the parent company of Flagstar Bank, N.A., one of the largest regional banks in the United States, headquartered in Hicksville, New York [2] - As of December 31, 2024, the company reported total assets of $100.2 billion, loans amounting to $69.2 billion, deposits of $75.9 billion, and total stockholders' equity of $8.2 billion [2] Group 2: Operations and Market Presence - Flagstar Bank operates 418 branches, with a strong presence in the Northeast and Midwest, and locations in high-growth markets in the Southeast and West Coast [3] - The bank has approximately 80 private banking teams across over 10 cities in the metropolitan New York City region and on the West Coast, catering to high-net-worth individuals and their businesses [3] Group 3: Dividend Information - The company declared a quarterly cash dividend on its Fixed-to-Floating Rate Noncumulative Perpetual Preferred Stock, Series A, at a rate of $15.94 per preferred share, equating to $0.3984 for each depositary share [6] - A quarterly cash dividend of $3.3333 per share was declared for its Series B Noncumulative Convertible Preferred Stock, and for its Series D Non-Voting Common Equivalent Stock, payable on March 17, 2025, to holders of record as of March 7, 2025 [6]

Core Viewpoint - Flagstar Financial, Inc. reported a narrower loss per share in Q4 2024 compared to the previous year, but overall financial performance showed significant challenges, particularly in net interest income and loan balances [1][2][3]. Financial Performance - Q4 2024 loss per share was 34 cents, better than the Zacks Consensus Estimate of a loss of 50 cents, and improved from a loss of 80 cents in the same quarter last year [1] - For the full year 2024, loss per share was $2.66, also better than the Zacks Consensus Estimate of a loss of $3.02, but a decline from earnings per share of $1.92 in the prior year [2] - Quarterly revenues were $625 million, down 28% year-over-year, but exceeded the Zacks Consensus Estimate of $590.5 million [4] - Full-year revenues reached $2.55 billion, a 56% increase year-over-year, but fell short of the Zacks Consensus Estimate of $2.58 billion [4] Income and Expenses - Net interest income (NII) for Q4 was $461 million, a decrease of 37.7% from the prior-year quarter, with a net interest margin of 1.73%, down from 2.82% in the previous quarter [4] - Non-interest income was $164 million, up 29.1% year-over-year, driven by a net gain of $89 million from the sale of mortgage servicing and third-party origination business [5] - Non-interest expenses were $718 million, a significant decrease of 77% year-over-year [5] - Adjusted non-interest expenses were $556 million, down 8% from Q4 2023 [6] Asset Quality and Credit Metrics - Total loans and leases held for investment declined 4% sequentially to $68.3 billion, while total deposits fell 8.6% to $745.9 billion [7] - Non-performing assets increased to $2.6 billion from $442 million year-over-year, with net charge-offs rising 20% to $222 million [8] - The provision for credit losses was $108 million, down 80.4% from the prior-year quarter [8] Capital Ratios - As of Dec. 31, 2024, the common equity tier 1 ratio improved to 11.86% from 9.05% year-over-year, while the total risk-based capital ratio increased to 15.17% from 11.77% [9] - The leverage capital ratio declined to 8.08% from 8.48% year-over-year [9] Overall Assessment - The company faces challenges with deteriorating asset quality and declining loan and deposit balances, although an increase in fee income provided some positive support [10]

Group 1 - Flagstar Financial had a significant positive day for its shareholders on January 30th, indicating strong market performance [1] - The company was previously known by a different name, suggesting a potential rebranding or strategic shift [1] Group 2 - Crude Value Insights provides an investment service focused on oil and natural gas, emphasizing cash flow and growth prospects [1] - Subscribers have access to a stock model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live sector discussions [2] - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas sector [3]