Flagstar Bank posts Q3 2026 profit of $12 million, EPS $0.01 and issues 2027 EPS guidance
Flagstar Bank reported third‑quarter 2026 net income of $12 million, or $0.01 per diluted share, versus analysts’ expectations of $0.07. Net interest income rose 5% to $460 million and the net interest margin expanded to 2.17%. The bank recorded a $76 million provision for credit losses and completed a $250 million share repurchase program. It projected 2027 earnings per share of $0.85‑$0.95, moving its full‑turnaround target to 2028 because of a higher‑for‑longer rate environment.
Why it matters
The earnings miss and lower EPS guidance led to a decline of roughly 5‑6% in the stock price, indicating short‑term pressure on valuation. The 2027 EPS outlook signals that investors should adjust expectations for profitability through 2028.
Key facts
- 1Third‑quarter 2026 net income was $12 million, or $0.01 per diluted share. prnewswire.com
- 2Net interest income increased $20 million, or 5%, to $460 million. sec.gov
- 3Net interest margin rose four basis points to 2.17%. sec.gov
- 4The provision for credit losses in the quarter was $76 million. finance.yahoo.com
- 5Flagstar completed a $250 million share buyback in early October. prnewswire.com
- 6CET1 capital ratio stood at 12.38%. sec.gov
Summary written by AlphAI AI Desk from 13 of 13 sources. Not investment advice. Figures are as stated by the linked sources.