NYSE$FLG

Flagstar Financial Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported diluted EPS of $0.30 and adjusted diluted EPS of $0.25.

New York Community Bancorp reported fourth-quarter diluted EPS of $0.30, which was unchanged compared to the fourth-quarter of 2021. Adjusted fourth-quarter 2022 diluted EPS was $0.25 compared to $0.31 in fourth-quarter 2021. The acquisition of Flagstar Bancorp closed on December 1st, creating one of the largest regional banks in the country.

  • Flagstar Bancorp acquisition closed on December 1st.
  • Transition to commercial bank model is underway.
  • Legacy New York Community deposit growth of $7.6 billion, a 22% increase.
  • Strategic actions were announced to restructure mortgage operations during the first quarter of 2023.

Headline financials

Total Revenue

$379M

Previous: $322M+17.7%
EPS (adj)

$0.75

Previous: $0.93-19.4%
Net Interest Margin

2.3%

Previous: 2.4%-6.6%
Efficiency Ratio

48.8%

Previous: 37.7%+29.5%
Net Income

$172M

Previous: $150M+14.7%
Operating Income

$184M

Previous: $199M-7.5%
Gross Profit

$338M

Previous: $338M+0.0%
Cash & Equivalents

$2.03B

Previous: $2.21B-8.1%
Total Assets

$90.1B

Previous: $59.5B+51.4%
Stock-Based Comp

$7M

Previous: $7M+0.0%

Revenue & EPS history

Flagstar Financial · Revenue · Quarterly

$379M

Q4 2022+17.7%vs Q4 2021
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Forward guidance

The Company expects that its margin in 2023 will be above where they ended 2022. They look forward to further benefits in all of their metrics throughout 2023 and next, as they focus on the integration and transformation of the new Flagstar.

Tailwinds

  • Margin in 2023 will be above where they ended the year.
  • Further benefits in all of their metrics throughout 2023 and next
  • Focus on the integration and transformation of the new Flagstar.
  • The company's sensitivity to interest rate changes has improved materially to a more balanced position.
  • Transformation of the Company to a commercial banking model is underway.

Headwinds

  • Mortgage market to remain challenged.
  • Substantial Fed policy shift last year resulted in significantly higher residential mortgage rates.
  • This had a negative impact on the business, as all mortgage activity slowed.
  • Mortgage business is cyclical by nature and challenging conditions are expected to continue throughout 2023.
  • Difficult decisions our leadership team has to make, however; they are necessary to ensure the long-term success of our mortgage business.

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 2022

Historical avgQ4 2022

+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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