Flagstar Bank's Q3 net loss narrows, interest margin improves

Overview * Flagstar Q3 net loss narrows to $36 mln, adjusted EPS at -$0.07 * Net interest margin improves 10 basis points to 1.91% * Credit loss provision decreases 41% as credit quality stabilizes Outlook * Flagstar did not provide specific guidance for future quarters or the full year Result Drivers * C&I LOAN GROWTH – Flagstar reported a 3% increase in C&I loans, driven by a 41% rise in new loan originations and a 26% increase in new commitments * CREDIT QUALITY IMPROVEMENT – Provision for credit losses decreased 41% as credit quality showed signs of stabilization and net charge-offs decreased 38% * REORGANIZATION BENEFITS – Completed holding company reorganization to simplify corporate structure, reduce regulatory burden, and lower operating expenses Key Details Metric Beat/Mis Actual Consensu s s Estimate Q3 -$0.07 ADJUSTED EPS Q3 EPS -$0.11 Q3 Net -$36 mln Income Q3 Net $425 mln Interest Income Q3 $38 mln CREDIT LOSS PROVISIO N Analyst Coverage * The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 11 "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 Financial Inc is $14.00, about 17.4% above its October 23 closing price of $11.56 * The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 56 three months ago Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (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.)

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