NYSE$FLG

Flagstar Financial Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported diluted earnings per common share of $0.20, driven by strong loan growth and a higher net interest margin.

New York Community Bancorp reported a net income of $101.2 million for Q4 2019, a 2% increase compared to the previous quarter. The diluted earnings per share was $0.20, up 5% from Q3 2019. Loan growth was strong, particularly in multi-family and specialty finance portfolios, and the net interest margin improved.

  • Net income for the fourth quarter of 2019 totaled $101.2 million compared to $99.0 million for the third quarter of 2019.
  • Net income available to common shareholders for the fourth quarter of 2019 was $93.0 million or $0.20 per common share, compared to $90.8 million for the third quarter of 2019, or $0.19 per common share.
  • Total assets were $53.6 billion, up 3% compared to December 31, 2018 and up 8% on an annualized basis compared to the third quarter of 2019.
  • The net interest margin for the fourth quarter was 2.04%, up 5 basis points compared to the third quarter 2019 net interest margin, driven primarily by lower funding costs.

Headline financials

Total Revenue

$242M

Previous: $247M-1.9%
EPS (adj)

$0.60

Previous: $0.57+5.3%
Net Interest Margin

2.0%

No prior period
Efficiency Ratio

48.5%

No prior period
CET1 Ratio

9.9%

No prior period
Tier 1 Capital Ratio

11.2%

No prior period
Total Capital Ratio

13.3%

No prior period
Leverage Ratio

8.7%

No prior period
NPLs to Total Loans

0.1%

No prior period
NPAs to Total Assets

0.1%

No prior period
Net Income

$101M

Previous: $92.4M+9.5%
Operating Income

$132M

No prior period
Gross Profit

$253M

Previous: $270M-6.6%
Cash & Equivalents

$742M

Previous: $1.48B-49.7%
Total Assets

$53.6B

Previous: $51.9B+3.4%
Stock-Based Comp

$8.11M

Previous: $8.19M-1.0%

Revenue & EPS history

Flagstar Financial · Revenue · Quarterly

$242M

Q4 2019-1.9%vs Q4 2018
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Forward guidance

Company expects loan growth and margin expansion throughout 2020.

Tailwinds

  • Expects loan growth throughout 2020.
  • Expects margin expansion throughout 2020.
  • Liability sensitive balance sheet.
  • Federal Reserve’s current stance on interest rates.
  • Significant repricing opportunities within CD portfolio and wholesale borrowings.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+0.1%

Avg return

Earnings day

-0.0%

Avg return

5 days after

-0.8%

Avg return

30 days after

49%

36 / 73 earnings

Positive

+27.2%

Q1 2024

Best reaction

-44.6%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.2%-3.8%-3.4%
Q4 2025-2.2%+3.5%-6.3%
Q3 2025+4.8%-0.3%-1.8%
Q2 2025+0.0%+0.8%+5.8%
Q1 2025+4.1%+3.9%+4.9%
Q4 2024+15.3%+23.9%+25.0%
Q3 2024+3.7%-0.5%+3.5%
Q2 2024+2.6%-3.1%+3.2%
Q1 2024+27.2%+37.7%+24.2%
Q4 2023-44.6%-48.0%-65.8%
Q3 2023-8.2%-6.1%-9.2%
Q2 2023+10.3%+9.9%-4.4%
Q1 2023+16.5%+6.5%+14.0%
Q4 2022+5.0%+4.2%-11.6%
Q3 2022-2.2%+4.0%+5.7%
Q2 2022+12.9%+13.3%+7.3%
Q1 2022-1.6%-3.2%+1.6%
Q4 2021-4.0%-4.3%-5.3%
Q3 2021-9.3%-9.8%-11.0%
Q2 2021+7.8%+7.4%+13.9%
Q1 2021+6.3%-0.3%-0.9%
Q4 2020-2.3%-4.2%+11.4%
Q3 2020-1.7%+1.1%+15.0%
Q2 2020+5.1%+0.1%-11.0%
Q1 2020+5.5%+2.2%-2.3%
Q4 2019-5.7%-5.1%-7.8%
Q3 2019-14.9%-12.6%-12.9%
Q2 2019+3.5%+2.1%+3.0%
Q1 2019-0.4%+1.5%-13.0%
Q4 2018+6.9%+9.0%+16.4%
Q3 2018-3.0%-0.6%+2.2%
Q2 2018-7.5%-5.1%-5.6%
Q1 2018-8.2%-8.3%-8.3%
Q4 2017+1.9%-3.0%+1.5%
Q3 2017-0.4%-1.8%-0.2%
Q2 2017-3.4%-1.4%-9.0%
Q1 2017-2.5%-3.6%-5.3%
Q4 2016-6.3%-6.1%-4.6%
Q3 2016+0.1%-0.1%+11.4%
Q2 2016-3.1%-1.8%-0.7%
Q1 2016-4.3%
Q4 2015+2.7%
Q3 2015-0.3%
Q2 2015+1.5%
Q1 2015+1.6%
Q4 2014+0.3%
Q3 2014+1.1%
Q2 2014+2.8%
Q1 2014-1.6%
Q4 2013-2.2%
Q3 2013+1.5%
Q2 2013-1.0%
Q1 2013-1.2%
Q4 2012+1.0%
Q3 2012-0.6%
Q2 2012+0.8%
Q1 2012-0.9%
Q4 2011-0.2%
Q3 2011-6.3%
Q2 2011+3.2%
Q1 2011+1.2%
Q4 2010-3.2%
Q3 2010+0.8%
Q2 2010-0.2%
Q1 2009+4.7%
Q1 2010+0.0%
Q4 2007+1.5%
Q4 2009+1.5%
Q4 2008+1.5%
Q3 2009+1.8%
Q3 2008+1.8%
Q2 2008-5.6%
Q2 2009-5.6%

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