Flagstar Bank: Still Avoiding Common And Preferred Shares

Jeremy LaKosh 6.32K Followers Follow Summary 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. The risk/reward profile is unattractive; income investors should seek healthier banks offering higher preferred yields. RiverNorthPhotography/iStock Unreleased via Getty Images Introduction Flagstar Bank, National Association ( FLG ) is a large regional bank formerly known as New York Community Bancorp. The bank has 340 locations throughout the United States, and its most recent growth surge came from This article was written by Jeremy LaKosh 6.32K Followers Follow Other writing on Substack: https://yieldstrategies.substack.com/I am currently focused on income investing through either common shares, preferred shares, or bonds. I will occasionally break away and write about the economy at large or a special situation involving a company I've been researching in. I target two articles per week for publication on Monday and Tuesday.About My Background: Bachelors in history/political science, Masters in Business Administration with a specialization in Finance and Economics. I enjoy numbers. I have been investing since 2000. Professionally, I am the CEO of an independent living retirement community in Illinois. 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 not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.