Flagstar Financial’s third quarter was marked by ongoing progress in commercial loan and deposit growth, but the market reacted negatively to results that fell short of Wall Street’s expectations. Management pointed to net interest margin expansion and continued C&I (commercial and industrial) loan growth as bright spots, yet acknowledged higher credit costs and persistent inflationary pressures. CEO Joseph Otting described the impact of rising interest rates and New York City rent regulation as central headwinds, noting, “Several variables pressured credit costs during the third quarter, including the effects of higher interest rates, actions related to the New York City rent regulations and persistent inflationary pressures.”

Is now the time to buy FLG? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our top 5 analyst questions from Flagstar Financial’s Q3 earnings call

• Christopher McGratty (KBW) asked about visibility into the CRE loan reset and maturity schedule, especially in light of rate changes; CFO Lee Smith emphasized the formulaic risk assessment process and highlighted that 2027 is the largest reset year, with a focus on market and less rent-regulated units.

• David Rochester (Cantor) questioned the linkage between C&I loan growth and associated deposit inflows; Co-President Richard Raffetto explained the strategy to deepen client relationships, reporting a 30% deposit-to-loan growth ratio and stressing ongoing efforts to improve relationship primacy.

• David Chiaverini (Jefferies) probed which guidance drivers are most at risk; Smith responded that deposit growth assumptions are the most critical and uncertain, while C&I origination and asset repricing are largely mechanical and “proven out.”

• Jared Shaw (Barclays Capital) sought detail on why Flagstar expects commercial loan growth to slow; Smith attributed the moderation primarily to deposit funding constraints, while residential growth is expected to be modest due to higher rates.

• Bernard Von Gizycki (Deutsche Bank) requested more color on net interest margin headwinds; Smith cited rising deposit costs, a slightly lighter C&I loan mix, and slower resolution of nonaccrual loans as the main factors moderating NIM expansion.

Catalysts in upcoming quarters

In upcoming quarters, the StockStory team will watch (1) whether Flagstar can consistently generate targeted deposit inflows to fund loan growth, (2) the pace and outcomes of contractual CRE loan repricing and paydowns, and (3) progress in reducing criticized and nonaccrual assets despite ongoing credit challenges. The ability to control costs and maintain capital discipline will also be important signposts amid persistent rate and regulatory pressures.

Flagstar Financial currently trades at $10.47, down from $11.46 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

Our favorite stocks right now

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.