Earnings analysis · 10-Q
FLG earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
Flagstar reported net income of $21 million for Q1 2026, a decrease from $29 million in the previous quarter, but a significant recovery from a $100 million net loss in Q1 2025. Revenue for the quarter was $498 million,…
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Flagstar reported net income of $21 million for Q1 2026, a decrease from $29 million in the previous quarter, but a significant recovery from a $100 million net loss in Q1 2025. Revenue for the quarter was $498 million, below the consensus estimate of $553.9 million, reflecting a challenging environment despite positive growth in commercial and industrial loans. While adjusted EPS met expectations at $0.04, overall results demonstrate mixed performance with declining non-interest income due to investment valuation losses and lower loan sales.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $0.03
What stood out
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Stable EPS Meeting Consensus
GAAP diluted EPS of $0.03 matched consensus expectations of $0.04.
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Significant Decline in Non-Interest Income
Non-interest income fell to $55 million from $80 million year-over-year, largely due to an $18 million drop from an investment in Figure Technology Solutions, Inc.
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Growth in C&I Loans
C&I loans grew by $1.4 billion to $16.6 billion, driven by $2.0 billion in new originations.
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Decrease in Net Interest Income
Net interest income fell to $443 million, down from $467 million in the prior quarter.
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Increase in Net Interest Margin
Net interest margin improved from 2.14% to 2.15% compared to the prior quarter.
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Reduction in Non-performing Loans
Total non-accrual loans decreased to $2.675 billion, down 10% from $2.975 billion at the end of the previous quarter.
What to watch
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Revenue Misses Expectations
Revenue of $498 million was significantly below the consensus estimate of $553.9 million.
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Decrease in Total Loans Held for Investment
Total loans and leases held for investment declined by $307 million from December 31, 2025 to $60.425 billion.
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Declining Non-Interest Income Trends
Continued decreases in non-interest income raise concerns about underlying revenue sustainability.
Management's outlook
Outlook deferred to future earnings press release.
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.