Flagstar Bank: Still Avoiding Common And Preferred Shares

Flagstar Bank faces persistent headwinds, with nonperforming assets and declining net interest income impairing earnings growth. FLG's Series A preferred shares yield 6.7%, below peer averages, and are overvalued relative to the bank's elevated risk profile. Loan and deposit growth have recently turned positive, but nonperforming assets remain elevated at 4.60%, far above the 1.42% loan loss allowance.