Flagstar Financial EPS Tops Forecast but Q1 Revenue Miss Spurs 3% Stock Drop
Flagstar Financial posted adjusted EPS of $0.04 versus a $0.03 forecast but missed revenue with $498 million against $552.9 million consensus, sending shares down 3%. Core deposits grew by $1.1 billion, C&I loans rose 9% to $16.6 billion, non-accrual loans fell 11%, and net interest margin edged up to 2.15%.
1. Q1 Financial Results
Flagstar Financial delivered adjusted earnings per share of $0.04, exceeding the $0.03 forecast, while revenue came in at $498 million versus a $552.9 million consensus. Net income attributable to common shareholders was $13 million, or $0.03 per diluted share, reversing a year-ago loss of $108 million.
2. Loan and Deposit Growth
Commercial and industrial lending expanded by $1.4 billion, or 9%, to $16.6 billion quarter-over-quarter. Core deposits, excluding brokered funds, increased by $1.1 billion, and total deposits rose by $832 million, reflecting sustained customer engagement.
3. Asset Quality and Capital Metrics
Non-accrual loans declined 11% and criticised loans dropped 3% from the prior quarter, while net interest margin edged up one basis point to 2.15%. Operating expenses fell 5% to $441 million, and the CET1 capital ratio strengthened 40 basis points to 13.24%.