Flagstar Bank announces $250 million share repurchase program
Flagstar Bank, N.A. (NYSE: FLG) announced that its board of directors has approved a common stock repurchase program authorizing the company to repurchase up to $250 million of its outstanding common stock over the next 12 months. The announcement of the buyback plan was synchronized with the company's second quarter results report. The financial report shows that Flagstar has achieved profitability for three consecutive quarters. In the second quarter, the net profit attributable to ordinary shareholders was US$26 million, or diluted earnings per share of US$0.06, which was a significant improvement from the US$13 million in the first quarter and reversed the US$78 million loss in the same period last year. Adjusted net income was US$23 million, or US$0.05 per diluted share. Company Executive Chairman and Chief Executive Officer Joseph M. Otting said the buyback program reflects the company's significant progress in executing its strategic plan, the strength of its balance sheet and its long-term growth prospects. The Company believes that returning capital to shareholders through share repurchases is an attractive and prudent use of excess capital at this time. As of the end of the second quarter, Flagstar Bank's Tier 1 common equity capital adequacy ratio was 13.16%, rated as one of the strongest levels among regional banks. This capital level is well above its target operating range of 10.5% to 11.5%, meaning the company has approximately $1.6 billion in after-tax excess capital relative to the lower end of the target range. This repurchase is equivalent to approximately 3% of the company's market capitalization based on a tangible book value of $17.51 per share, marking another important step in the company's strategic transformation. In the second quarter, the company achieved positive overall loan growth for the first time since the end of 2023, with commercial and industrial loans growing 12% quarter-on-quarter, reflecting the effectiveness of its diversification strategy. Repurchases will be conducted through the open market or privately negotiated transactions, and the specific timing and amount will depend on a variety of factors. The program does not oblige the company to acquire any specific number of shares and may be modified, suspended or terminated at any time.