Core Viewpoint - Flagstar Financial reported a significant decline in revenue and a less negative EPS for the quarter ended March 2025, indicating challenges in performance compared to the previous year and market expectations [1]. Financial Performance - Revenue for the quarter was $490 million, down 22.6% year-over-year, and below the Zacks Consensus Estimate of $518.85 million, resulting in a surprise of -5.56% [1]. - EPS was reported at -$0.23, an improvement from -$0.75 in the same quarter last year, with an EPS surprise of +11.54% against a consensus estimate of -$0.26 [1]. Key Metrics - Net Interest Margin was 1.7%, below the five-analyst average estimate of 1.9% [4]. - Book value per common share (GAAP) was $18.43, slightly lower than the average estimate of $18.65 [4]. - Average Balances-Interest earning assets were $95.62 billion, compared to the average estimate of $96.85 billion [4]. - Efficiency Ratio was reported at 108.7%, significantly higher than the average estimate of 100% [4]. - Net Interest Income was $410 million, below the average estimate of $446.35 million [4]. - Total non-interest income was $80 million, exceeding the average estimate of $70.30 million [4]. - Fee income was reported at $22 million, significantly lower than the average estimate of $37.12 million [4]. - Other non-interest income was $31 million, higher than the average estimate of $22.17 million [4]. Stock Performance - Flagstar Financial's shares returned -5.5% over the past month, compared to the Zacks S&P 500 composite's -4.8% change, indicating underperformance relative to the broader market [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3].
Flagstar Financial (FLG) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates