Flagstar Bancorp Misses Earnings Estimate (FBC)

Troy, Michigan based Flagstar Bancorp, Inc. FBC on Wednesday morning released financial results that failed to meet Wall Street earnings expectations. Flagstar Bancorp, Inc. (FBC) reported a bigger than expected 2nd quarter net loss of $97 million, or 63 cents per share, compared to a loss of $76.6 million, or 3.20 cents per share, a year earlier. A poll of analysts conducted by Thomson Reuters showed an average Wall Street estimate of an expected loss of 48 cents per share. Chairman and chief executive officer Joseph P. Campanelli said, "Our continued losses, largely as a result of legacy credit costs, indicate that we are operating in a challenging economic environment, but we are encouraged by the improvement in asset quality, as evidenced by declining delinquencies and a lower level of non-performing loans. Despite these improvements, we believe it is prudent to continue to maintain a cautious outlook with regard to economic conditions, as reflected in our allowance for loan losses coverage level." Flagstar Bancorp, Inc. ended the previous trading day at $3.43 per share. Analysts covering the company's stock have a consensus price target of $4.67 per share. Read more from Benzinga's Company news.