Overview

• US regional bank's Q1 revenue missed analyst expectations, adjusted EPS beat consensus

• Company saw strong C&I loan growth and improved credit quality in Q1

• Operating expenses fell 5% from prior quarter, supporting profitability

Outlook

• Flagstar says it is well-positioned for continued success in 2026

• Company expects improvement in credit trends and solid loan growth to continue

• Flagstar remains focused on driving sustainable profitability and improving returns

Result Drivers

• C&I LENDING GROWTH - Co said strong growth in C&I loans was driven by demand from business customers and expansion in specialized and commercial banking segments

• IMPROVED CREDIT QUALITY - Co reported declines in non-accrual and criticized/classified loans, citing proactive credit management and prudent underwriting

• EXPENSE REDUCTION - Operating expenses fell 5% from the prior quarter, mainly due to lower compensation, general and administrative, and FDIC insurance costs

Company press release: ID:nPnvVjLwa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$498 mln	$520.49 mln (12 Analysts)
Q1 Adjusted EPS	Beat	$0.04	$0.03 (15 Analysts)
Q1 Net Income		$21 mln
Q1 Net Interest Income		$443 mln
Q1 Credit Loss Provision		$0

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 9 "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 Bank NA is $16.00, about 11.5% above its April 23 closing price of $14.35

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 20 three months ago

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