The bank reported its third straight profitable quarter, driven by C&I loan growth and lower expenses, while raising long-term earnings forecasts.
Flagstar Bank reported second-quarter GAAP earnings of $0.06 per diluted share and adjusted earnings of $0.05, marking its third consecutive profitable quarter. The results were supported by a 12% quarter-over-quarter increase in commercial-and-industrial loans, totaling $2 billion, alongside deposit growth and reduced operating expenses.
The bank’s common equity tier 1 capital ratio stood at 13.16%, with $1.6 billion in excess capital above its target range. Flagstar also announced a $250 million share-repurchase program and raised its 2026 and 2027 earnings-per-share outlook to $0.40-$0.50 and $1.60-$1.70, respectively, from prior guidance.
Commercial real estate and multifamily lending continued to decline, offset by strength in C&I portfolios. The bank’s adjusted earnings compared with a $0.14 per-share loss in the same period last year.