FLG Flagstar Bank (FLG) Q3 FY26 earnings call
Flagstar Bank is extending its strategic transformation timeline to 2028, a shift driven by the higher-for-longer interest rate environment impacting credit quality and deposit growth. Despite these macroeconomic headwinds, the bank continues to strengthen its core business through C&I loan growth and balance sheet diversification, while actively managing its NYC rent-regulated multifamily portfolio. The company remains committed to achieving peer-like profitability metrics by the revised target year.
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FLG operating KPIs by quarter
| KPI | Mar 2026 Q1 FY26 | Jun 2026 Q2 FY26 | This call Sep 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|---|
| Common equity tier 1 ratio (CET1) | — | 13.16%And finally, we ended the quarter with a 13.16% CET1 capital ratio, comfortably one of the strongest CET1 ratios of any other regional bank and a driving factor behind our stock buyback announcement.Source: earnings call transcript | 12.38%On the capital slide, you can see that at 12.38%, our CET1 ratio continues to rank among the top quartile in our peer group.Source: earnings call transcript | -0.8 pt |
| Net interest margin | 2.15%First quarter NIM increased 10 basis points quarter-over-quarter to 2.15% after adjusting for the recognition of a onetime hedge gain of $21 million in the fourth quarter.Source: earnings call transcript | 2.13%The second quarter NIM of 2.13% compared to 2.15% in the first quarter but was impacted by an extra day in the quarter.Source: earnings call transcript | 2.17%Our NIM expanded four basis points in 3Q versus 2Q to 2.17%, with the September NIM coming in at 2.23%.Source: earnings call transcript | 0 pt |
| Occupancy rate New York City rent-regulated multifamily | 97%At March 31, this tranche of the portfolio totaled $8.8 billion, down 4% compared to the previous quarter and has an occupancy rate of 97% and a current LTV of 70%.Source: earnings call transcript | 97%This portfolio has an occupancy rate of 97%, a current LTV of 70%.Source: earnings call transcript | — | 0 pt |
| Branches | 340So we feel that that's an area where we can continue to bring in more deposits and then leveraging our 340 bank branches as well.Source: earnings call transcript | — | 340And we want to leverage our relationships, particularly from a commercial lending point of view, from a private banking point of view, and then leveraging the 340 bank branches that we have to drive, not just the non-interest-bearing, but the interest-bearing deposits as well.Source: earnings call transcript | — |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.