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Stock impact report

Flagstar: Potential Asset Markdowns In NYC [Seeking Alpha]

Flagstar Bank, N.A. (FLG) 
Company Research Source: Seeking Alpha
FLG's turnaround showed progress—net loss narrowed, non-interest expense fell, and net interest income improved—but NYC loan exposure now clouds the outlook. Roughly $15.8B of FLG's loans are NYC-based, and potential rent freezes threaten property values, impairing tangible book value and future earnings. With the TBV discount eroding and asset impairments possible, I no longer see a clear undervaluation case for FLG ahead of Q4 results. Michael M. Santiago/Getty Images News Flagstar Financial ( FLG ) is a turnaround stock I previously rated a Buy. With much of their loan book concentrated on NYC, however, the election and swearing in of Zohran Mamdani change the underlying assumptions for this This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am n Show less Read more
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