FLAGSTAR BANK REPORTS SECOND QUARTER 2026 NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS OF $0.06 PER DILUTED SHARE AND ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS OF $0.05 PER DILUTED SHARE

FLAGSTAR BANK REPORTS SECOND QUARTER 2026 NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS OF $0.06 PER DILUTED SHARE AND ADJUSTED NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS OF $0.05 PER DILUTED SHARE Second Quarter 2026 Summary Compared to First Quarter 2026

Profitability

Capital

Balance Sheet

Asset Quality

Hicksville, N.Y., July 24, 2026 /PRNewswire/ -- Flagstar Bank, N.A. (the "Bank") (NYSE: FLG), today reported second quarter 2026 net income of $34 million compared to net income of $21 million for first quarter 2026 and compared to a net loss of $70 million for second quarter 2025. Second quarter 2026 net income attributable to common stockholders was $26 million, or $0.06 per diluted share, compared to net income attributable to common stockholders of $13 million, or $0.03 per diluted share in first quarter 2026 and compared to a net loss attributable to common stockholders of $78 million, or $0.19 per diluted share in second quarter 2025.

For the six months ended June 30, 2026, the Bank reported net income of $55 million compared to a net loss of $170 million for the six months ended June 30, 2025. Net income attributable to common stockholders for the six months ended June 30, 2026 was $39 million or $0.08 per diluted share compared to a net loss attributable to common stockholders of $186 million or $0.45 per diluted share for the six months ended June 30, 2025.

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS - AS ADJUSTED

On an adjusted basis, which excludes a $4 million gain on sale related to our equity investment in Figure Technology Solutions, Inc., (the "Figure Investment"), second quarter 2026 net income attributable to common stockholders was $23 million or $0.05 per diluted share compared to first quarter 2026 net income attributable to common stockholders of $20 million or $0.04 per diluted share, which excludes a $9 million fair value loss on the Figure Investment, and compared to a net loss attributable to common stockholders of $60 million or $0.14 per diluted share in second quarter 2025, which excludes $14 million of merger related expenses, $2 million of severance expenses, $7 million in lease cost acceleration related to previously disclosed branch closures, and $3 million in trailing costs related to the sale of the Bank's mortgage servicing business.

For the six months ended June 30, 2026, net income attributable to common stockholders, on an adjusted basis was $43 million or $0.09 per diluted share which excludes a $5 million loss related to the Figure Investment. This compares to a net loss attributable to common stockholders, as adjusted, for the six months ended June 30, 2025 of $153 million or $0.37 per diluted share, which excludes $22 million of merger-related expenses, $2 million of severance expenses, $12 million in lease cost acceleration, and $8 million in trailing costs related to the sale of the Bank's mortgage servicing business.

CEO COMMENTARY

Commenting on the Bank's second quarter 2026 performance, Executive Chairman and Chief Executive Officer, Joseph M. Otting stated, "Flagstar's second quarter operating performance reflects our third consecutive quarter of profitability and improved earnings and represents continued progress on our path to transforming into a top-performing regional bank. During the quarter, we made considerable strides diversifying our balance sheet, reaching an important inflection point in asset growth, as total assets increased 3% on an annualized basis compared to the first quarter, driven by overall growth in our loan portfolio.

"Total loans increased 4% annualized, driven by record C&I loan production, which more than offset the continued strategic reduction in the commercial real estate portfolio. This marks the first quarter of loan growth since the fourth quarter of 2023. C&I originations in the second quarter totaled $2.8 billion, while commitments were $4.2 billion. This drove a $2.0 billion or 12% increase in C&I loans to $18.6 billion compared to the previous quarter.

"We also generated net deposit growth of $689 million, all of which was driven by core deposits. More importantly, $706 million of this quarter's deposit growth was C&I lending-related, as we have broadened our customer relationships in that key business.

"The net interest margin was relatively consistent with the prior quarter, while we reduced our cost of deposits by five basis points and our overall cost of funds by seven basis points. Additionally, we continued to pay down our wholesale borrowings, further strengthening our funding base.

"Also contributing to our improved operating performance was our continued focus on expense management, as operating expenses declined 3%, driving positive operating leverage of 7%.

"Our credit quality trends remained relatively stable during the quarter. While we did see a modest increase in total non-accrual loans, the overall level of criticized and classified loans decreased, driven mainly by a 6% decline in substandard loans.

"Importantly, we continue to maintain a strong capital position, with a CET1 capital ratio of 13.16% at the end of the quarter. This level of capital provides meaningful financial flexibility to support balance sheet growth, invest in our franchise, and return capital to shareholders over time. On that note, this morning we also announced the adoption of a $250 million share repurchase program. This reflects the tremendous progress we have made in executing on our strategic plan, the strength of our capital position and the positive long-term outlook for the Bank. We believe that returning capital to our shareholders through a stock buyback represents a compelling and disciplined use of our excess capital at this time.

"Overall, we believe the progress we have made over the past several quarters demonstrates the effectiveness of our strategy and positions the Bank well to deliver sustainable long-term shareholder value."

BALANCE SHEET SUMMARY

(dollars in millions)

June 30, 2026

March 31, 2026

Compare

Total loans and leases held for investment

$ 60,987

$ 60,425

1 %

Total assets

87,714

87,129

1 %

Total deposits

67,521

66,832

1 %

Total borrowed funds

10,937

11,186

-2 %

Linked-Quarter Comparison

EARNINGS SUMMARY FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026

Net Interest Income, Net Interest Margin, and Average Balance Sheet

Net Interest Income

Second quarter 2026 net interest income totaled $440 million compared to $443 million, down $3 million or 1% compared to first quarter 2026 but rose $21 million or 5% compared to second quarter 2025.

For the first six months of 2026, net interest income increased $54 million or 7% to $0.9 billion compared to $0.8 billion for the first six months of 2025.

Linked-Quarter Comparison

Year-Over-Year Comparison

Year-to-Date Comparison

Provision for Credit Losses

Linked-Quarter Comparison

Year-Over-Year Comparison

Year-to-Date Comparison

Pre-Provision Net Revenue

The table below details the Bank's pre-provision net revenue ("PPNR") and PPNR, as adjusted, which are non-GAAP measures, for the periods noted:

June 30, 2026

For the Three Months Ended

compared to:

(dollars in millions)

June 30, 2026

March 31, 2026

June 30, 2025

March 31, 2026

June 30, 2025

Net interest income

$ 440

$ 443

$ 419

-1 %

5 %

Non-interest income

38 %

-1 %

Total revenues

$ 516

$ 498

$ 496

4 %

Total non-interest expense

450

466

513

-3 %

-12 %

Pre - provision net revenue/(loss) (non-GAAP)

$ 66

$ 32

$ (17)

Merger-related expenses

—

Severance

—

-100 %

Lease cost acceleration related to closing branches

—

Trailing mortgage sale costs with Mr. Cooper

—

Net (gain) loss on investment security

(4)

—

Pre - provision net revenue/(loss), as adjusted (non-GAAP) (1)

$ 62

$ 41

$ 9

51 %

(1) Amounts may not foot as a result of rounding.

For second quarter 2026, PPNR totaled $66 million compared to PPNR of $32 million for first quarter 2026 and a pre-provision net loss of $17 million for second quarter 2025.

Linked-Quarter Comparison

Year-Over-Year Comparison

For the Six Months Ended

(dollars in millions)

June 30, 2026

June 30, 2025

% Change

Net interest income

$ 883

$ 829

7 %

Non-interest income

131

157

-17 %

Total revenues

$ 1,014

$ 986

3 %

Total non-interest expense

916

1,045

-12 %

Pre - provision net revenue / (loss) (non-GAAP)

$ 98

$ (59)

Merger-related expenses

—

-100 %

Severance

—

-100 %

Lease cost acceleration related to closing branches

—

-100 %

Trailing mortgage sale costs with Mr. Cooper

—

-100 %

Net loss on investment security

—

Pre - provision net revenue/(loss), as adjusted (non-GAAP)

$ 103

$ (15)

Year-to-Date Comparison

Non-Interest Income

June 30, 2026

For the Three Months Ended

compared to:

(dollars in millions)

June 30, 2026

March 31, 2026

June 30, 2025

March 31, 2026

June 30, 2025

Fee income

$26

$23

$22

13 %

18 %

Bank-owned life insurance

30 %

Net gain (loss) on investment securities

(9)

—

Net gain on loan sales and securitizations

-20 %

-33 %

Other income

8 %

-28 %

Total non-interest income

$76

$55

$77

38 %

-1 %

Impact of Adjustments:

Net (gain) loss on investment security

(4)

—

Adjusted noninterest income (non-GAAP)

$72

$64

$77

13 %

-6 %

Non-interest income in second quarter 2026 was $76 million, up $21 million or 38% compared to $55 million in first quarter 2026 and down $1 million or 1% compared to second quarter 2025.

Linked-Quarter Comparison

Year-Over-Year Comparison

For the Six Months Ended

(dollars in millions)

June 30, 2026

June 30, 2025

% Change

Fee income

$49

$44

11 %

Bank-owned life insurance

15 %

Net gain (loss) on investment securities

(5)

—

Net return on mortgage servicing rights

—

Net gain on loan sales and securitizations

-53 %

Net loan administration income

-80 %

Other income

-22 %

Total non-interest income

$131

$157

-17 %

Impact of Notable Item:

Net (gain) loss on investment security

—

Adjusted noninterest income (non-GAAP)

$136

$157

-13 %

For the first six months of 2026, non-interest income totaled $131 million compared to $157 million for the first six months of 2025.

Year-to-Date Comparison

Non-Interest Expense

June 30, 2026

For the Three Months Ended

compared to:

(dollars in millions)

June 30, 2026

March 31, 2026

June 30, 2025

March 31, 2026

June 30, 2025

Operating expenses:

Compensation and benefits

$220

$228

$237

-4 %

-7 %

Occupancy and equipment

-8 %

-13 %

Software expense

4 %

29 %

FDIC insurance

— %

-39 %

Professional services

-14 %

-17 %

General and administrative

-2 %

-13 %

Total operating expenses

427

441

472

-3 %

-10 %

Intangible asset amortization

-8 %

-15 %

Merger-related expense

—

Total non-interest expense

$450

$466

$513

-3 %

-12 %

Impact of Adjustments:

Total operating expenses

$427

$441

$472

-3 %

-10 %

Severance

—

(2)

-100 %

Lease cost acceleration related to closing branches

—

(7)

Trailing mortgage sale costs with Mr. Cooper

—

(3)

Adjusted operating expenses (non-GAAP)

$427

$441

$460

-3 %

-7 %

Second quarter 2026 operating expenses were $427 million compared to $441 million in first quarter 2026, down $14 million or 3%, and they declined $45 million or 10% compared to second quarter 2025.

Linked-Quarter Comparison

Year-Over-Year Comparison

For the Six Months Ended

(dollars in millions)

June 30, 2026

June 30, 2025

% Change

Operating expenses:

Compensation and benefits

$448

$481

-7 %

Occupancy and equipment

108

-11 %

Software expense

20 %

FDIC insurance

-39 %

Professional services

-16 %

General and administrative

127

151

-16 %

Total operating expenses

868

968

-10 %

Intangible asset amortization

-13 %

Merger-related expenses

—

-100 %

Total non-interest expense

$916

$1,045

-12 %

Impact of Notable Items:

Total operating expenses

$868

$968

-10 %

Severance

—

(2)

-100 %

Lease cost acceleration related to closing branches

—

(12)

-100 %

Trailing mortgage sale costs with Mr. Cooper

—

(8)

-100 %

Adjusted operating expenses (non-GAAP)

$868

$946

-8 %

For the first six months of 2026, operating expenses totaled $868 million, down $100 million or 10% compared to the first six months of 2025.

Year-to-Date Comparison

Income Taxes

Linked-Quarter Comparison

Year-Over-Year Comparison

Year-to-Date Comparison

CREDIT QUALITY

June 30, 2026

As of

compared to:

(dollars in millions)

June 30, 2026

March 31, 2026

June 30, 2025

March 31, 2026

June 30, 2025

Total non-accrual loans held for investment

$2,800

$2,675

$3,180

5 %

-12 %

Non-accrual held for investment loans to total loans held for investment

4.59 %

4.43 %

4.96 %

4 %

-7 %

Non-accrual held for investment loans and repossessed assets ("NPAs") to total assets

3.20 %

3.08 %

3.46 %

4 %

-7 %

Allowance for credit losses on loans and leases

$869

$954

$1,106

-9 %

-21 %

Total ACL, including on unfunded commitments

$925

$1,007

$1,162

-8 %

-20 %

ACL % of total loans held for investment

1.42 %

1.58 %

1.72 %

-15 bps

-30 bps

Total ACL % of total loans held for investment

1.52 %

1.67 %

1.81 %

-15 bps

-30 bps

ACL on loans and leases % of NPLs

31 %

36 %

35 %

-13 %

-11 %

Total ACL % of NPLs

33 %

38 %

37 %

-12 %

-10 %

Non-Accrual Loans

At June 30, 2026, total non-accrual loans, including held-for-sale, were $2,805 million, up $123 million or 5% compared to $2,682 million at March 31, 2026, but down $379 million or 12% compared to June 30, 2025. Total non-accrual loans HFI to total loans HFI were 4.59% at June 30, 2026 compared to 4.43% at March 31, 2026 and 4.96% at June 30, 2025.

Linked-Quarter Comparison

Year-Over-Year Comparison

Total Allowance for Credit Losses

The total allowance for credit losses including the allowance for unfunded commitments was $925 million at June 30, 2026 compared to $1,007 million at March 31, 2026 and $1,162 million at June 30, 2025. The total allowance for credit losses on loans and leases at June 30, 2026 was $869 million compared to $954 million at March 31, 2026 and $1,106 million at June 30, 2025. The decrease was primarily due to charged-off loans which had specific reserves and pay offs in our multi-family and CRE portfolios, partially offset by growth in our C&I portfolio.

The total allowance for credit losses to total loans HFI at June 30, 2026 was 1.52% compared to 1.67% at March 31, 2026 and 1.81% at June 30, 2025. The total allowance for credit losses on loans and leases to total loans HFI was 1.42% at June 30, 2026 compared to 1.58% at March 31, 2026 and 1.72% at June 30, 2025.

CAPITAL POSITION

The Bank's regulatory capital ratios continue to exceed regulatory minimums to be classified as "Well Capitalized," the highest regulatory classification. The table below depicts the Bank's regulatory capital ratios at those respective periods.

June 30, 2026

March 31, 2026

December 31, 2025

REGULATORY CAPITAL RATIOS: (1)

Common equity tier 1 ratio

13.16 %

13.23 %

12.83 %

Tier 1 risk-based capital ratio

13.99 %

14.08 %

13.66 %

Total risk-based capital ratio

16.58 %

16.68 %

16.23 %

Leverage capital ratio

9.70 %

9.61 %

9.22 %

(1)

The minimum regulatory requirements for classification as a well-capitalized institution are a common equity tier 1 capital ratio of 6.5%; a tier one risk-based capital ratio of 8.00%; a total risk-based capital ratio of 10.00%; and a leverage capital ratio of 5.00%.

Flagstar Bank, N.A.

Flagstar Bank, N.A. is one of the largest regional banks in the country and is headquartered in Hicksville, New York. At June 30, 2026, the Bank had $87.7 billion of assets, $61.2 billion of loans, deposits of $67.5 billion, and total stockholders' equity of $8.1 billion. Flagstar Bank, N.A. operates approximately 340 locations across nine states, with strong footholds in the greater New York/New Jersey metropolitan region and in the upper Midwest, along with a significant presence in fast-growing markets in Florida and the West Coast.

Post-Earnings Release Conference Call

The Bank will host a conference call on July 24, 2026 at 8:00 a.m. (Eastern Time) to discuss its second quarter 2026 performance. The conference call may be accessed by dialing (888) 596-4144 (for domestic calls) or (646) 968-2525 (for international calls) and providing the following conference ID: 5857240. The live webcast will be available at ir.flagstar.com under Events.

A replay will be available approximately three hours following completion of the call through 11:59 p.m. on July 28, 2026 and may be accessed by calling (800) 770-2030 (domestic) or (609) 800-9909 (international) and providing the following conference ID: 5857240. In addition, the conference call will be webcast at ir.flagstar.com and archived through 5:00 p.m. on August 21, 2026.

Investor Contact: Salvatore J. DiMartino (516) 683-4286

Media Contact: Jessica Torchia (248) 312-6451

Cautionary Statements Regarding Forward-Looking Language

This earnings release and the associated conference call may include forward‐looking statements by us and our authorized officers pertaining to such matters as our goals, beliefs, intentions, and expectations regarding, among other things: (a) revenues, earnings, loan production, asset quality, liquidity position, capital levels, risk analysis, divestitures, acquisitions, and other material transactions, among other matters; (b) the future costs and benefits of the actions we may take; (c) our assessments of credit risk and probable losses on loans and associated allowances and reserves; (d) our assessments of interest rate and other market risks; (e) our ability to achieve profitability goals within projected timeframes and to execute on our strategic plan, including the sufficiency of our internal resources, procedures and systems; (f) our ability to execute our capital management strategies, including our ability to complete our current stock repurchase program and to implement future stock repurchase programs; (g) our ability to attract, incentivize, and retain key personnel and the roles of key personnel; (h) our ability to achieve our financial and other strategic goals, including those related to our recent holding company reorganization, which was completed in October 2025 (the "Reorganization"), our merger with Flagstar Bancorp, Inc., which was completed in December 2022, our acquisition of substantial portions of the former Signature Bank through an FDIC-assisted transaction, which was completed in March 2023, and our ability to comply with the heightened regulatory standards with respect to governance and risk management programs to which we are subject as a national bank with assets of $50 billion or more; (i) the impact of the $1.05 billion capital raise we completed in March 2024; (j) the conversion or exchange of shares of our preferred stock; (k) the payment of dividends on shares of our capital stock, including adjustments to the amount of dividends payable on shares of our preferred stock; (l) the dilution of existing equity holders associated with future equity awards and stock issuances; (m) the effects of the reverse stock split we effected in July 2024; and (n) the impact of the 2024 sale of our mortgage servicing operations, third party mortgage loan origination business, and mortgage warehouse business.

Forward‐looking statements are typically identified by such words as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "should," "confident," and other similar words and expressions, and are subject to numerous assumptions, risks, and uncertainties, which change over time. Additionally, forward‐looking statements speak only as of the date they are made; we do not assume any duty, and do not undertake, to update our forward‐looking statements. Furthermore, because forward‐looking statements are subject to assumptions and uncertainties, actual results or future events could differ, possibly materially, from those anticipated in our statements, and our future performance could differ materially from our historical results.

Our forward‐looking statements are subject to, among others, the following principal risks and uncertainties: general economic conditions and trends, either nationally or locally; conditions in the securities, credit and financial markets; changes in interest rates; changes in deposit flows, and in the demand for deposit, loan, and investment products and other financial services; changes in real estate values; changes in the quality or composition of our loan or investment portfolios, including associated allowances and reserves; changes in future allowance for credit losses, including changes required under relevant accounting and regulatory requirements; the ability to pay future dividends; the ability to implement future stock repurchase programs, which are subject to the approval of the Board of Directors and other various factors, including the Bank's liquidity, capital position, and financial performance, accounting, and regulatory considerations as well as general market conditions; changes in our capital management and balance sheet strategies and our ability to successfully implement such strategies; our ability to achieve the anticipated benefits of the Reorganization; changes in our Board of Directors and our executive management team; changes in our strategic plan, including changes in our internal resources, procedures and systems, and our ability to successfully implement such plan; changes in competitive pressures among financial institutions or from non‐financial institutions; changes in legislation, regulations, and policies; changes relating to rent regulation and housing, including recent legislative action in New York City to freeze rents on certain rent-regulated properties; the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; the outcome of federal, state, and local elections and the resulting economic and other impact on the areas in which we conduct business; the impact of changing political conditions or federal government shutdowns; the imposition of restrictions on our operations by bank regulators; the outcome of pending or threatened litigation, or of investigations or any other matters before regulatory agencies, whether currently existing or commencing in the future; our ability to comply with heightened regulatory standards with respect to governance and risk management programs to which we are subject as a national bank with assets of $50 billion or more; the restructuring of our mortgage business; our ability to achieve anticipated cost savings and enhanced efficiencies with respect to our balance sheet and expense reduction strategies; the impact of failures or disruptions in or breaches of our operational or security systems, data or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns; the impact of natural disasters, extreme weather events, civil unrest, international military conflict, terrorism or other geopolitical events; and a variety of other matters which, by their nature, are subject to significant uncertainties and/or are beyond our control. Our forward-looking statements are also subject to the following principal risks and uncertainties with respect to our merger with Flagstar Bancorp, which was completed in December 2022, and our acquisition of substantial portions of the former Signature Bank through an FDIC-assisted transaction, which was completed in March 2023: the possibility that the anticipated benefits of the transactions will not be realized when expected or at all; the possibility of increased legal and compliance costs, including with respect to any litigation or regulatory actions related to the business practices of acquired companies or the combined business; diversion of management's attention from ongoing business operations and opportunities; the possibility that we may be unable to achieve expected synergies and operating efficiencies in or as a result of the transactions within the expected timeframes or at all; and revenues following the transactions may be lower than expected.

More information regarding some of these factors is provided in the Risk Factors section of our Annual Report on Form 10‐K for the year ended December 31, 2025, and in other reports we file with the Office of the Comptroller of the Currency (the "OCC") and voluntarily file with the Securities and Exchange Commission (the "SEC"), and which are also available on our Investor Relations website. Our forward‐looking statements may also be subject to other risks and uncertainties, including those we may discuss in this news release, on our conference call, during investor presentations, or in our securities disclosure filings. All such files are accessible on our website at ir.flagstar.com, on the OCC's website at www.occ.gov, and on the SEC's website at www.sec.gov.

- Financial Statements and Highlights Follow -

FLAGSTAR BANK, N.A.

CONSOLIDATED STATEMENTS OF CONDITION

(unaudited)

June 30, 2026

compared to

(dollars in millions)

June 30, 2026

March 31, 2026

December 31, 2025

March 31, 2026

December 31, 2025

Assets

Cash and due from banks

$ 416

$ 401

$ 553

4 %

-25 %

Interest-earning deposits and other securities with financial institutions

4,692

6,605

5,341

-29 %

-12 %

Total cash and cash equivalents

5,108

7,006

5,894

-27 %

-13 %

Securities:

Debt securities available-for-sale

16,553

14,514

15,701

14 %

5 %

Equity investments with readily determinable fair values, at fair value

-75 %

-78 %

Total securities

16,567

14,570

15,766

14 %

5 %

Loans held for sale

208

233

265

-11 %

-22 %

Loans and leases held for investment:

Multi-family

26,931

27,863

28,983

-3 %

-7 %

Commercial real estate

8,244

8,833

9,314

-7 %

-11 %

One-to-four family first mortgage

5,767

5,640

5,630

2 %

Commercial and industrial

18,563

16,568

15,217

12 %

22 %

Other loans

1,482

1,521

1,588

-3 %

-7 %

Total loans and leases held for investment

60,987

60,425

60,732

1 %

— %

Less: Allowance for credit losses on loans and leases

(869)

(954)

(1,030)

-9 %

-16 %

Total loans and leases held for investment, net

60,118

59,471

59,702

1 %

Premises and equipment, net

472

474

477

— %

-1 %

Core deposit and other intangibles

333

356

381

-6 %

-13 %

Other assets

4,908

5,019

5,027

-2 %

Total assets

$ 87,714

$ 87,129

$ 87,512

1 %

— %

Liabilities and Stockholders' Equity

Deposits:

Interest-bearing checking and money market accounts

$ 20,477

$ 19,310

$ 18,233

6 %

12 %

Savings accounts

14,836

15,005

14,864

-1 %

— %

Certificates of deposit

20,477

20,719

20,843

-1 %

-2 %

Non-interest-bearing accounts

11,731

11,798

12,060

-1 %

-3 %

Total deposits

67,521

66,832

66,000

1 %

2 %

Borrowed funds:

Wholesale borrowings

9,901

10,151

11,151

-2 %

-11 %

Junior subordinated debentures

587

586

585

— %

Subordinated notes

449

448

— %

Total borrowed funds

10,937

11,186

12,184

-2 %

-10 %

Other liabilities

1,115

990

1,184

13 %

-6 %

Total liabilities

79,573

79,008

79,368

1 %

— %

Mezzanine equity:

Preferred stock - Series B

— %

Stockholders' equity:

Preferred stock - Series A and D

503

— %

Common stock

— %

Paid-in capital in excess of par

9,299

9,288

9,303

— %

Retained earnings

(958)

(980)

(988)

-2 %

-3 %

Treasury stock, at cost

(161)

(167)

(190)

-4 %

-15 %

Accumulated other comprehensive loss, net of tax:

(547)

(528)

(489)

4 %

12 %

Total stockholders' equity

8,140

8,120

8,143

— %

Total liabilities, Mezzanine and Stockholders' Equity

$ 87,714

$ 87,129

$ 87,512

1 %

— %

FLAGSTAR BANK, N.A.

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(unaudited)

June 30, 2026

For the Three Months Ended

compared to

June 30, 2026

March 31, 2026

June 30, 2025

March 31, 2026

June 30, 2025

(dollars in millions, except per share data)

Interest Income:

Loans and leases

$ 751

$ 754

$ 840

— %

-11 %

Securities and money market investments

225

230

303

-2 %

-26 %

Total interest income

976

984

1,143

-1 %

-15 %

Interest Expense:

Interest-bearing checking and money market accounts

126

114

162

11 %

-22 %

Savings accounts

101

110

-4 %

-12 %

Certificates of deposit

201

203

287

-1 %

-30 %

Borrowed funds

112

123

165

-9 %

-32 %

Total interest expense

536

541

724

-1 %

-26 %

Net interest income

440

443

419

-1 %

5 %

Provision for credit losses

—

-72 %

Net interest income after provision for credit losses

422

443

355

-5 %

19 %

Non-Interest Income:

Fee income

13 %

18 %

Bank-owned life insurance

30 %

Net gain (loss) on investment securities

(9)

—

Net gain on loan sales and securitizations

-20 %

-33 %

Net loan administration income (loss)

—

— %

Other income

8 %

-26 %

Total non-interest income

38 %

-1 %

Non-Interest Expense:

Operating expenses:

Compensation and benefits

220

228

237

-4 %

-7 %

Occupancy and equipment

-8 %

-13 %

Software expense

4 %

29 %

FDIC insurance

— %

-39 %

Professional services

-14 %

-17 %

General and administrative

-2 %

-13 %

Total operating expenses

427

441

472

-3 %

-10 %

Intangible asset amortization

-8 %

-15 %

Merger-related expenses

—

-100 %

Total non-interest expense

450

466

513

-3 %

-12 %

Income (loss) before income taxes

(81)

50 %

Income tax expense (benefit)

(11)

27 %

Net income (loss)

(70)

62 %

Preferred stock dividends

— %

Net income (loss) attributable to common stockholders

$ 26

$ 13

$ (78)

100 %

Basic earnings (loss) per common share

$ 0.06

$ 0.03

$ (0.19)

100 %

Diluted earnings (loss) per common share

$ 0.06

$ 0.03

$ (0.19)

100 %

Dividends per common share

$ 0.01

— %

FLAGSTAR BANK, N.A.

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(unaudited)

For the Six Months Ended

June 30, 2026

June 30, 2025

Compare

(dollars in millions, except per share data)

Interest Income:

Loans and leases

$ 1,505

$ 1,700

-11 %

Securities and money market investments

455

607

-25 %

Total interest income

1,960

2,307

-15 %

Interest Expense:

Interest-bearing checking and money market accounts

240

329

-27 %

Savings accounts

198

221

-10 %

Certificates of deposit

404

595

-32 %

Borrowed funds

235

333

-29 %

Total interest expense

1,077

1,478

-27 %

Net interest income

883

829

7 %

Provision for credit losses

143

-87 %

Net interest income after provision for credit losses

865

686

26 %

Non-Interest Income:

Fee income

11 %

Bank-owned life insurance

15 %

Net loss on investment securities

(5)

—

Net gain on loan sales and securitizations

-53 %

Net loan administration income

-80 %

Other income

-22 %

Total non-interest income

131

157

-17 %

Non-Interest Expense:

Operating expenses:

Compensation and benefits

448

481

-7 %

Occupancy and equipment

108

-11 %

Software expenses

20 %

FDIC insurance

-39 %

Professional services

-16 %

General and administrative

127

151

-16 %

Total operating expenses

868

968

-10 %

Intangible asset amortization

-13 %

Merger-related expenses

—

-100 %

Total non-interest expense

916

1,045

-12 %

Income (loss) before income taxes

(202)

Income tax expense (benefit)

(32)

Net income (loss)

(170)

Preferred stock dividends

— %

Net income (loss) attributable to common stockholders

$ 39

$ (186)

Basic earnings (loss) per common share

$ 0.09

$ (0.45)

Diluted earnings (loss) per common share

$ 0.08

$ (0.45)

Dividends per common share

$ 0.02

— %

FLAGSTAR BANK, N.A.

RECONCILIATIONS OF CERTAIN GAAP AND NON-GAAP FINANCIAL MEASURES

In addition to GAAP measures, management considers various non-GAAP measures when evaluating the performance of the business.

We believe that non-interest income, operating expenses, pre-provision net (loss) revenue (which includes both non-interest income and non-interest expense), net income (loss), net income (loss) attributed to common stockholders, diluted earnings (loss) per share, the net interest margin, and our efficiency ratio as adjusted for items that we believe are not indicative of core operating results, such as but not limited to merger and restructuring expenses, litigation settlement expenses related to cases prior to the acquisition of Flagstar Bank, NA, fair value adjustments on non-core equity investments, as well as adjustments for severance and impairment charges and other exit costs resulting from strategic shifts in our operations provide valuable insights to investors by highlighting our underlying performance. These non-GAAP metrics also facilitate meaningful comparisons to other financial institutions, as they are widely used and frequently referenced by investors and analysts.

We believe average tangible common stockholders' equity, tangible common stockholders' equity, average tangible assets and tangible book value per share are important measures for evaluating the performance of the business without the impact of our intangible assets. These non-GAAP metrics also provide investors with important indications regarding our ability to grow the business, our ability to pay dividends as well as engage in capital strategies in addition to facilitating meaningful comparisons to other financial institutions, as they are widely used and frequently referenced by investors and analysts.

These non-GAAP measures should not be considered in isolation or as a substitute for comparable measures calculated in accordance with GAAP. Moreover, the way we calculate these non-GAAP measures may differ from that of other companies reporting non-GAAP measures with similar names. The following tables reconcile the above the non-GAAP financial measures we use to their comparable GAAP financial measures, to the extent not reconciled earlier in this earnings release, for the stated periods:

At or for the

Three Months Ended,

Six Months Ended,

(dollars in millions)

June 30, 2026

March 31, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Total Stockholders' Equity

$ 8,140

$ 8,120

$ 8,095

$ 8,140

$ 8,095

Less: Core deposit and other intangible assets

(333)

(356)

(433)

(333)

(433)

Less: Preferred stock - Series A and D

(503)

Tangible common stockholders' equity

$ 7,304

$ 7,261

$ 7,159

$ 7,304

$ 7,159

Total Stockholders' Equity

$ 8,140

$ 8,120

$ 8,095

$ 8,140

$ 8,095

Less: Preferred stock

$ (503)

Common stockholders' equity

$ 7,637

$ 7,617

$ 7,592

$ 7,637

$ 7,592

Total Assets

$ 87,714

$ 87,129

$ 92,237

$ 87,714

$ 92,237

Less: Core deposit and other intangible assets

(333)

(356)

(433)

(333)

(433)

Tangible Assets

$ 87,381

$ 86,773

$ 91,804

$ 87,381

$ 91,804

Average common stockholders' equity

$ 7,670

$ 7,694

$ 7,486

$ 7,681

$ 7,592

Less: Other intangible assets

(349)

(373)

(450)

$ (361)

$ (464)

Average tangible common stockholders' equity

$ 7,321

$ 7,036

$ 7,320

$ 7,128

Average Assets

$ 86,694

$ 87,057

$ 96,710

$ 86,874

$ 97,902

Less: Core deposit and other intangible assets

(349)

(373)

(450)

(361)

(464)

Average tangible assets

$ 86,345

$ 86,684

$ 96,260

$ 86,513

$ 97,438

GAAP MEASURES:

Return (loss) on average assets (1)

0.16 %

0.10 %

(0.29) %

0.13 %

(0.35) %

Return (loss) on average common stockholders' equity (2)

1.37 %

0.66 %

(4.20) %

1.01 %

(4.92) %

Book value per common share

$ 18.31

$ 18.28

$ 18.31

$ 18.28

Common stockholders' equity to total assets

8.71 %

8.74 %

8.23 %

8.71 %

8.23 %

NON-GAAP MEASURES:

Return (loss) on average tangible assets (1)

0.15 %

0.13 %

(0.21) %

0.14 %

(0.28) %

Return (loss) on average tangible common stockholders' equity (2)

1.29 %

1.04 %

(3.41) %

1.16 %

(4.33) %

Tangible book value per common share

$ 17.51

$ 17.42

$ 17.24

$ 17.51

$ 17.24

Tangible common stockholders' equity to tangible assets

8.36 %

8.37 %

7.80 %

8.36 %

7.80 %

(1)

To calculate return on average assets for a period, we divide net income, or non-GAAP net income, generated during that period by average assets recorded during that period. To calculate return on average tangible assets for a period, we divide net income by average tangible assets recorded during that period.

(2)

To calculate return on average common stockholders' equity for a period, we divide net income attributable to common stockholders, or non-GAAP net income attributable to common stockholders, generated during that period by average common stockholders' equity recorded during that period. To calculate return on average tangible common stockholders' equity for a period, we divide net income attributable to common stockholders generated during that period by average tangible common stockholders' equity recorded during that period.

For the Three Months Ended

For the Six Months Ended

(dollars in millions, except per share data)

June 30, 2026

March 31, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Net income (loss) - GAAP

$ 34

$ 21

$ (70)

$ 55

$ (170)

Merger-related expenses (1)

—

Severance

—

Lease cost acceleration related to closing branches

—

Trailing mortgage sale costs with Mr. Cooper

—

Net (gain) loss on investment security

(4)

—

Total adjustments

$ (4)

$ 9

$ 25

$ 5

$ 44

Tax effect on adjustments

(2)

(7)

(1)

(11)

Net income (loss), as adjusted - non-GAAP

$ 31

$ 28

$ (52)

$ 59

$ (138)

Preferred stock dividends

Net income (loss) attributable to common stockholders, as adjusted - non-GAAP

$ 23

$ 20

$ (60)

$ 43

$ (153)

(1)

Certain merger-related items are not taxable or deductible.

(2)

Amounts may not foot as a result of rounding.

For the Three Months Ended

For the Six Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Amount

Per Share

Amount

Per Share

Amount

Per Share

Amount

Per Share

Amount

Per Share

Diluted Earnings (Loss) Per Share - GAAP

$26

$0.06

$13

$0.03

$(78)

$(0.19)

$39

$0.08

$(186)

$(0.45)

Adjustments

$ (4)

(0.01)

0.02

0.06

0.01

0.11

Tax effect on adjustments

0.00

(2)

0.00

(7)

(0.02)

(1)

0.00

(11)

(0.03)

Diluted Earnings (Loss) Per

Share, as adjusted - non-GAAP

$23

0.05

$20

0.04

$(60)

(0.14)

$43

0.09

$(153)

(0.37)

Total shares for diluted

earnings per common share

473,623,332

466,550,891

415,125,228

470,067,958

414,975,524

(1)

Amounts may not foot as a result of rounding.

For the Three Months Ended

For the Six Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

June 30, 2026

June 30, 2025

(dollars in millions)

Net interest income

$ 440

$ 443

$ 419

$ 883

$ 829

Non-interest income

131

157

Total revenues

$ 516

$ 498

$ 496

$ 1,014

$ 986

Total non-interest expense

450

466

513

916

1,045

Pre - provision net revenue (loss) (non-GAAP)

$ 66

$ 32

$ (17)

$ 98

$ (59)

Merger-related expenses

—

Severance

—

Lease cost acceleration related to closing branches

—

Trailing mortgage sale costs with Mr. Cooper

—

Net (gain) loss on investment security

(4)

—

Pre - provision net revenue (loss) excluding merger-

related expenses, as adjusted (non-GAAP)

$ 62

$ 41

$ 9

$ 103

$ (15)

Provision for credit losses

(18)

—

(64)

(18)

(143)

Merger-related expenses

—

(14)

—

(22)

Severance

—

(2)

—

(2)

Lease cost acceleration related to closing branches

—

(7)

—

(12)

Trailing mortgage sale costs with Mr. Cooper

—

(3)

—

(8)

Net gain (loss) on investment security

(9)

—

(5)

—

Income (loss) before taxes

$ 48

$ 32

$ (81)

$ 80

$ (202)

Income tax expense (benefit)

(11)

(32)

Net income (loss) (GAAP)

$ 34

$ 21

$ (70)

$ 55

$ (170)

(1)

Amounts may not foot as a result of rounding.

June 30, 2026

For the Three Months Ended

Compared to:

June 30, 2026

March 31, 2026

June 30, 2025

March 31, 2026

June 30, 2025

(dollars in millions)

Net interest income

$ 440

$ 443

$ 419

Non-interest income

Total revenues (A)

$ 516

$ 498

$ 496

4 %

Total non-interest expense (B)

450

466

513

(3) %

(12) %

Operating leverage (A-B)

7 %

16 %

FLAGSTAR BANK, N.A.

NET INTEREST INCOME ANALYSIS

LINKED-QUARTER AND YEAR-OVER-YEAR COMPARISONS (unaudited)

For the Three Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

(dollars in millions)

Average

Balance

Interest

Average

Yield/Cost

Average

Balance

Interest

Average

Yield/Cost

Average

Balance

Interest

Average

Yield/Cost

Assets:

Interest-earning assets:

Total loans and leases (1)

$ 60,971

$ 751

4.91 %

$ 60,840

$ 754

4.97 %

$ 65,824

$ 840

5.12 %

Securities (2)

17,037

180

4.22

16,840

179

4.25

15,169

170

4.48

Interest-earning cash and cash equivalents

5,042

3.63

5,631

3.64

12,054

133

4.42

Total interest-earning assets

83,050

$ 976

4.71

83,311

$ 984

4.79

93,047

$ 1,143

4.93

Non-interest-earning assets

3,644

3,746

3,663

Total assets

$ 86,694

$ 87,057

$ 96,710

Liabilities and Stockholders' Equity:

Interest-bearing deposits:

Interest-bearing checking and money market accounts

$ 19,617

$ 126

2.55 %

$ 18,703

$ 114

2.49 %

$ 20,497

$ 162

3.16 %

Savings accounts

14,857

2.63

14,905

101

2.74

14,353

110

3.07

Certificates of deposit

20,694

201

3.90

20,565

203

4.00

25,310

287

4.55

Total interest-bearing deposits

55,168

424

3.08

54,173

418

3.13

60,160

559

3.73

Borrowed funds

10,276

112

4.37

11,401

123

4.38

14,105

165

4.70

Total interest-bearing liabilities

65,444

$ 536

3.28

65,574

$ 541

3.35

$ 74,265

$ 724

3.91

Non-interest-bearing deposits

11,970

11,955

12,731

Other liabilities

1,106

1,330

1,724

Total liabilities

78,520

78,859

88,720

Stockholders' and mezzanine equity

8,174

8,198

7,990

Total liabilities and stockholders' equity

$ 86,694

$ 87,057

$ 96,710

Net interest income/interest rate spread

$ 440

1.43 %

$ 443

1.44 %

$ 419

1.02 %

Net interest margin

2.13 %

2.15 %

1.81 %

Ratio of interest-earning assets to interest-bearing liabilities

1.27 x

1.25 x

(1)

Comprised of Loans and leases held for investment, net of deferred loan fees and costs, and Loans held for sale.

(2)

Comprised of Debt securities available-for-sale at amortized cost, Equity investments with readily determinable fair values, at fair value and FHLB stock and FRB-NY stock, at cost.

(3)

Amounts may not foot as a result of rounding.

For the Six Months Ended

June 30, 2026

June 30, 2025

(dollars in millions)

Average

Balance

Interest

Average

Yield/Cost

Average

Balance

Interest

Average

Yield/Cost

Assets:

Interest-earning assets:

Total loans and leases (1)

$ 60,906

$ 1,505

4.94 %

$ 67,011

$ 1,700

5.12 %

Securities (2)

16,939

359

4.24

14,124

318

4.50

Interest-earning cash and cash equivalents

5,335

3.64

13,193

289

4.42

Total interest-earning assets

83,180

$ 1,960

4.75

94,328

$ 2,307

4.93

Non-interest-earning assets

3,694

3,574

Total assets

$ 86,874

$ 97,902

Liabilities and Stockholders' Equity:

Interest-bearing deposits:

Interest-bearing checking and money market accounts

$ 19,162

$ 240

2.52 %

$ 20,758

$ 329

3.20 %

Savings accounts

14,881

198

2.69

14,351

221

3.10

Certificates of deposit

20,630

404

3.95

25,830

595

4.65

Total interest-bearing deposits

54,673

842

3.10

60,939

1,145

3.79

Borrowed funds

10,835

235

4.32

14,240

333

4.71

Total interest-bearing liabilities

65,508

$ 1,077

3.31

75,179

$ 1,478

3.96

Non-interest-bearing deposits

11,963

12,899

Other liabilities

1,218

1,728

Total liabilities

78,689

89,806

Stockholders' and mezzanine equity

8,185

8,096

Total liabilities and stockholders' equity

$ 86,874

$ 97,902

Net interest income/interest rate spread

$ 883

1.44 %

$ 829

0.97 %

Net interest margin

2.14 %

1.77 %

Ratio of interest-earning assets to interest-bearing liabilities

1.27 x

1.25 x

(1)

Comprised of Loans and leases held for investment, net of deferred loan fees and costs, and Loans held for sale.

(2)

Comprised of Debt securities available-for-sale at amortized cost, Equity investments with readily determinable fair values, at fair value and FHLB stock and FRB-NY stock, at cost.

(3)

Amounts may not foot as a result of rounding.

FLAGSTAR BANK, N.A.

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)

(dollars in millions)

For the Three Months Ended

For the Six Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

June 30, 2026

June 30, 2025

OTHER FINANCIAL MEASURES:

Efficiency ratio (1)

87.08 %

93.65 %

103.37 %

90.33 %

106.02 %

Efficiency ratio, as adjusted (2)

82.65

88.68

95.34

85.63

98.28

Operating expenses to average assets

1.97

2.03

1.96

1.00

0.99

Effective tax rate

28.2

34.9

12.9

30.9

15.9

Shares used for basic EPS per common share

416,829,060

416,149,153

415,125,228

416,490,985

414,975,524

Shares used for diluted EPS per common share

473,623,332

466,550,891

415,125,228

470,067,958

414,975,524

Common shares outstanding at the respective period-ends

417,018,972

416,777,393

415,353,394

417,018,972

415,353,394

(1)

We calculate our efficiency ratio by dividing our non-interest expense by the sum of our net interest income and non-interest income.

(2)

We calculate our efficiency ratio, as adjusted, by dividing our operating expenses by the sum of our net interest income and non-interest income.

FLAGSTAR BANK, N.A.

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)

ASSET QUALITY SUMMARY

The following table presents the Bank's asset quality measures at the respective dates:

June 30, 2026

compared to

(dollars in millions)

June 30, 2026

March 31, 2026

June 30, 2025

March 31, 2026

June 30, 2025

Non-accrual loans held for investment:

Multi-family

$ 2,132

$ 2,025

$ 2,388

5 %

-11 %

Commercial real estate

471

441

563

7 %

-16 %

One-to-four family first mortgage

2 %

-26 %

Commercial and industrial

111

122

123

-9 %

-10 %

Other non-accrual loans

-7 %

4 %

Total non-accrual loans held for investment

2,800

2,675

3,180

5 %

-12 %

Repossessed assets

-6 %

-30 %

Total non-accrual held for investment loans and repossessed assets

$ 2,808

$ 2,683

$ 3,191

5 %

-12 %

Non-accrual loans held for sale:

One-to-four family first mortgage

-29 %

25 %

Total non-accrual mortgage loans held for sale

$ 5

$ 7

$ 4

-29 %

25 %

FLAGSTAR BANK, N.A.

SUPPLEMENTAL FINANCIAL INFORMATION (unaudited)

The following table presents information regarding the delinquency status of our loans held for investment:

(dollars in millions)

Current

Loans 30-89 Days

Past Due

Loans 90 Days or More Past

Due and Still Accruing

Non-Accrual

Loans

Total Loans

Receivable

June 30, 2026

Multi-family

$ 24,528

$ 233

$ 38

$ 2,132

$ 26,931

Commercial real estate

7,730

471

8,244

One-to-four family first mortgage

5,698

—

5,767

Commercial and industrial

18,370

—

111

18,563

Other

1,442

—

1,482

Total

$ 57,768

$ 368

$ 51

$ 2,800

$ 60,987

March 31, 2026

Multi-family

$ 25,159

$ 677

$ 2

$ 2,025

$ 27,863

Commercial real estate

8,250

129

441

8,833

One-to-four family first mortgage

5,513

5,640

Commercial and industrial

16,371

122

16,568

Other

1,458

—

1,521

Total

$ 56,751

$ 967

$ 32

$ 2,675

$ 60,425

June 30, 2025

Multi-family

$ 29,152

$ 392

$ —

$ 2,388

$ 31,932

Commercial real estate

9,958

115

—

563

10,636

One-to-four family first mortgage

5,334

—

5,445

Commercial and industrial

14,265

—

123

14,426

Other

1,628

—

1,682

Total

$ 60,337

$ 604

$ —

$ 3,180

$ 64,121

The following table summarizes the Bank's net charge-offs (recoveries) for the respective periods:

For the Three Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

(dollars in millions)

Net Charge-offs

(Recoveries)

Average

Balance

% (1)

Net Charge-offs

(Recoveries)

Average

Balance

% (1)

Net Charge-offs

(Recoveries)

Average

Balance

% (1)

Multi-family

$ 80

$ 27,331

1.17 %

$ 72

$ 28,555

1.01 %

$ 96

$ 32,847

1.17 %

Commercial real estate

8,723

0.05

9,204

0.35

11,061

0.47

One-to-four family residential

5,353

0.07

5,284

0.08

4,995

0.08

Commercial and industrial

17,446

0.30

(8)

15,626

(0.20)

14,486

0.08

Other

1,514

1.32

1,558

1.28

1,711

0.94

Total

$ 100

$ 60,367

0.66 %

$ 78

$ 60,227

0.52 %

$ 117

$ 65,100

0.72 %

(1)

Three months ended presented on an annualized basis.

For the Six Months Ended

June 30, 2026

June 30, 2025

(dollars in millions)

Net Charge-offs

(Recoveries)

Average

Balance

% (1)

Net Charge-offs

(Recoveries)

Average

Balance

% (1)

Multi-family

$ 152

$ 27,939

1.09 %

$ 176

$ 33,378

1.05 %

Commercial real estate

8,962

0.20

11,251

0.27

One-to-four family residential

5,319

0.08

4,989

0.08

Commercial and industrial

16,541

0.06

14,706

0.42

Other

1,536

1.30

1,728

0.93

Total

$ 178

$ 60,297

0.59 %

$ 232

$ 66,052

0.70 %

(1)

Six months ended presented on an annualized basis.

SOURCE Flagstar Bank, N.A.