Flagstar Financial

Q3 FY2026 EarningsFLG Q3 FY26 reported a significant miss on both GAAP and Normalized EPS, with GAAP EPS of $0.01 vs. $0.0725 expected. Total revenue of $530M fell short of the $544.5M consensus, primarily due to lower non-interest income. The bank faced substantial headwinds from credit costs, as provision for credit losses surged to $76M (compared to $18M in Q2), driven by New York City rent-regulated multi-family portfolio pressures. While C&I loan growth was strong at 11% QoQ, management has notably pushed back its long-term strategic objectives from 2027 to 2028 due to the 'higher for longer' interest rate environment.