Flagstar Bank Q3 adj EPS misses expectations

Overview

• US regional bank's Q3 revenue rose and beat analyst expectations, adjusted EPS missed

• Company completed $250 mln share buyback

Outlook

• Company now expects to achieve long-term strategic objectives in 2028, delayed from 2027

Result Drivers

• NET INTEREST INCOME - Co said higher net interest income and margin expansion drove operating performance

• LOAN AND DEPOSIT GROWTH - Co attributed results to growth in commercial and industrial loans and deposits

• CREDIT COSTS - Co said higher provision for credit losses was driven by rising interest rates and NYC rent regulation impact

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 6 "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 Bank, National Association is $16.00, about 39.8% above its October 22 closing price of $11.44

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%

• Oct 20 - Ally Financial Q3 adjusted revenue beats estimates

• Oct 22 - Customers Bancorp Q3 net income rises on higher net interest income, deposit growth

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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.)