Flagstar Bank Q3 Earnings Miss Sends Shares Sliding to 52‑Week Low

Flagstar Financial (FLG) reported third-quarter 2026 results on October 23 that missed on both lines. Earnings were $0.01 per share, $0.06 below the $0.07 analyst estimate, and revenue came in at $530 million against a consensus of $545.77 million. The stock dropped 9.3% on the day to $10.38, and Investing.com flagged a new 52-week low of $10.49. The prior close had been $11.44.

The company's earnings release, filed as an 8-K, shows net interest income of $460 million, up 5% from the prior quarter, and a net interest margin of 2.17%, up 4 basis points. The margin was 1.91% a year earlier. The pressure came from credit: the provision for credit losses was $76 million, up $58 million from the prior quarter, which the company tied mainly to higher interest rates, including their effect on its New York City rent-regulated multifamily portfolio.

There were operating positives. Net commercial and industrial loans grew $2 billion, and $1.2 billion of par payoffs reduced the commercial real estate concentration ratio. The bottom line also included a $22 million tax benefit from an audit settlement that added about $0.04 per share, so the underlying per-share result may have been weaker than the reported $0.01.

Investors may focus on the path to the company's targets. Management revised 2027 EPS guidance to $0.85 to $0.95 and set a 2028 target of $1.60 to $1.70, and its $250 million buyback is complete, with further repurchases suspended until 2027. Quarterly deposit growth of $800 million to $1 billion was named as the main execution risk. The shares were down about 17% over three months, and the stock saw no positive and 16 negative EPS revisions over the last 90 days.