Flagstar Q3 net income falls to $3 million
Key points
- Flagstar Bank reported third-quarter 2026 net income attributable to common stockholders of $3 million, down from $26 million in the previous quarter but improving from a $45 million loss a year earlier.
- Net interest income increased 5% sequentially to $460 million, while net interest margin widened four basis points to 2.17% and loans reached $61.9 billion.
- Flagstar completed a $250 million share buyback but pushed its long-term financial targets to 2028 from 2027, citing expectations of higher interest rates for longer.
Flagstar Bank (NYSE:FLG) reported third-quarter 2026 net income attributable to common stockholders of $3 million, or $0.01 per diluted share, down from $26 million in the previous quarter.
The bank returned to year-over-year profitability from a $45 million common-stockholder loss, while net interest income increased 5% sequentially to $460 million.
Net interest margin improved four basis points to 2.17%, supported by higher lending balances and continued expansion of commercial banking operations.
Loans increased $958 million to $61.9 billion, led by commercial and industrial lending, while Commercial Bank deposits grew 7%.
Flagstar moved its target for fully achieving long-term financial objectives to 2028 from 2027, citing a higher-for-longer interest rate environment.
The provision for credit losses increased to $76 million from $18 million in the previous quarter, although net charge-offs decreased 26% sequentially.
Flagstar reported a Common Equity Tier 1 capital ratio of 12.38% and completed its previously announced $250 million share repurchase program in early October.
