Flagstar Financial (NYSE:FLG) posted a second-quarter adjusted net loss of $0.14 per share on Friday, matching analyst expectations, but its stock declined over 4% during the session.
Revenue for the quarter was $496 million, missing the $519.38 million consensus. However, the company reported improved metrics across several areas. Net interest margin rose to 1.81%, up 7 basis points from Q1, and credit costs declined with a lower provision for loan losses.
Flagstar showed strength in commercial and industrial lending, with new loan originations jumping 57% and new commitments up 80% quarter-over-quarter. The company also reduced its commercial real estate exposure, cutting CRE loans by $874 million, or 8%, from the prior quarter.
