Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — Q3 2026 Earnings Presentation
29 slides from Flagstar Bank, N.a's earnings presentation, Oct 23, 2026
Slide 1: Third Quarter 2026 Results
Third Quarter 2026 Results October 23, 2026
Slide 2: Cautionary Statement
Cautionary Statement Forward-Looking Information This earnings presentation 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) re
Slide 3: Strategic Plan Update
Strategic Plan Update Progress toward strategic priorities are still on track, however 1 given a higher for longer interest rate environment our 2027 financial objectives have shifted to 2028 Guidance adjusted to reflect a higher interest rate environment 2 and its impact on credit costs Competitive
Slide 4: Third Quarter 2026 Highlights
Third Quarter 2026 Highlights Management Focus Areas 1 2 3 4 Strengthen Execute on C&I Proactive Prudent Earnings and Private Bank Management Approach to Power Growth Initiatives of CRE Portfolio Credit • Net interest income up • $2.0 billion net C&I loan • Multi-family and CRE par • Higher interest
Slide 5: Forecast Update
Forecast Update 2026 2027 2028 2026 2027 2028 ($ in millions, except per share ($ in millions, except per data) share data) Net Interest Income $1,815 – $1,830 $2,200 – $2,300 $2,600 – $2,700 Diluted Adjusted EPS(1) $0.10 – $0.15 $0.85 – $0.95 $1.60 – $1.70 Prior guidance ($1,860 - $1,960) ($2,500 -
Slide 6: Guidance 2026 to 2027 Drivers
Guidance 2026 to 2027 Drivers Net Interest Income $ in millions Lower Fixed Asset Nonaccrual Loans $2,200 – 2,300 Repricing $15 - $25 Balance Sheet $170 - $190 Growth Driven by: $215 - $235 • Multi-family and CRE $1,815 – 1,830 loans resetting to Driven by: higher rates • C&I loan growth Reflects •
Slide 7: Guidance 2027 to 2028 Drivers
Guidance 2027 to 2028 Drivers Net Interest Income $ in millions Lower Funding Nonaccrual Mix Fixed Asset $2,600 – 2,700 Loans Repricing $40 - $50 Balance Sheet $30 - $40 Growth $120 - $140 Driven by: $200 - $220 $2,200 – 2,300 • Multi-family and Driven by: CRE loans • C&I loan growth resetting to hi
Slide 8: Pre-Provision Net Revenue (PPNR)
Pre-Provision Net Revenue (PPNR) Adjusted PPNR Trends (Annually) $ in millions $1,225 -$1,325 $800 -$900 $250 -$275 $61 Reflects Guidance Range $1 FY24 FY25 FY26 FY27 FY28 See cautionary statements on page 2 | See the reconciliations of these non-GAAP measures with the comparable GAAP measures on pa
Slide 9: Diluted Earnings Per Share Trends
Diluted Earnings Per Share Trends Adjusted Diluted EPS Trends (Annually) $1.60 -$1.70 $0.85 -$0.95 $0.10 -$0.15 Reflects Guidance Range $(0.37) $(2.68) (1) (1) (1) FY24 FY25 FY26 FY27 FY28 See cautionary statements on page 2 | See the reconciliations of these non-GAAP measures with the comparable GA
Slide 10: Net Interest Margin | Proactively Managing Higher
Net Interest Margin | Proactively Managing Higher Net Interest Margin (Quarterly) Net Interest Margin (Annually) Fed Funds Rate 4.50% 4.25% 4.00% Interest-Bearing 3.75% 3.75% Deposit Costs 2.85% - 3.60% 3.34% 2.50% - 2.95% 3.13% 3.08% 3.09% 2.15% - 2.60% 2.14% 2.15% 2.13% 2.17% 2.20% 1.91% 1.89% 2.0
Slide 11: Non-interest Expense | Disciplined Management
Non-interest Expense | Disciplined Management Adjusted Operating Expenses(1) Highlights $ in millions • Year over Year: adjusted operating expenses are estimated to decrease by approximately $165 million, or ~9% • Linked Quarter: adjusted operating expenses increased $14 $457 $462 $441 $427 $441 mil
Slide 12: Capital | Strong Capital Position
Capital | Strong Capital Position CET1 Ratio Target operating $ in billions range 10.5-11.5% 13.23% 13.16% CET1 12.83% 12.45% 12.38% excess of low-end of $1.2B target range of 10.5% 9/30/2025 12/31/2025 3/31/2026 6/30/2026 9/30/2026 Highlights 1. CET1 ratio of 12.38% is top quartile in peer group 2.
Slide 13: Deposits | Overview
Deposits | Overview Well Diversified Deposit Base by Product Deposit Activity $ in billions Balance ($B) 9/30/2026 $67.5 $0.6 $0.3 $0.5 $67.8 Noninterest-Bearing Demand $12.4 $(0.6) $(0.5) Interest-Bearing Demand $11.2 Money Markets $8.2 Savings $14.7 Retail CDs $15.0 Jumbo CDs $6.3 6/30/2026 Privat
Slide 14: Commercial Real Estate | Payoffs and CRE Concentration Trends
Commercial Real Estate | Payoffs and CRE Concentration Trends CRE Portfolio Payoffs at Par Total Total 3Q 2026 2Q 2026 Substandard Substandard Payoffs Payoffs CRE payoffs at (%) (%) par of $1.2B with Multi-Family $837 million 39% $875 million 44% 35% of the payoffs from Office $127 million 4% $31 mi
Slide 15: Multi-Family | Portfolio Overview
Multi-Family | Portfolio Overview Proactively Reducing Multi-Family (MF) Exposure(1) Highlights $ in billions • MF portfolio ALLL at 1.63%, among the highest relative to peers(2); MF rent regulated >= 50% ALLL at 2.97% -16% • Average loan size of $8.8 million $28.8 $27.1 $26.0 $25.1 $24.1 • MF loans
Slide 16: Multi-Family | New York City (NYC) Portfolio Details
Multi-Family | New York City (NYC) Portfolio Details NYC Multi-Family Portfolio (as of 9/30/2026) $ in millions Portfolio Characteristics Loan Resets Book Average Current Amortizing Reset < 18 Repriced or < 18 (1) Balance Balance Occ Rate LTV DSCR (2) Repriced Months Months Market & <50% $ 4,737 $ 4
Slide 17: Multi-Family | New York City (NYC) Credit Details
Multi-Family | New York City (NYC) Credit Details NYC Multi-Family Portfolio (as of 9/30/2026) Observations $ in millions Loan Review Credit Metrics Book Recent Financials ACL % to Nonaccrual Proactive management of rent (3) Balance Appraisal (1) Reviewed (2) Loans NCOs Loans regulated portfolio (7)
Slide 18: Asset Quality | Allowance for Credit Loss Detail
Asset Quality | Allowance for Credit Loss Detail 6/30/2026 9/30/2026 Change in ($ in millions) Allowance ALLL % Allowance ALLL % ALLL % Multi-Family (MF) $439 1.63% $424 1.63% — bps MF Rent Regulated >=50% (excl. Co-op) $281 2.87% $283 2.97% 10 bps MF at Market and Rent Regulated <50% (excl. Co-op)
Slide 19: Asset Quality
Asset Quality Criticized + Classified Loans (including LHFS)(1) Total Non-accrual Loans (including LHFS) $ in billions $ in millions $12.4 $12.1 $12.3 $11.8 $11.6 $2,805 $2,821 -0.9% 0.6% 42% Performing 9/30/2025 12/31/2025 3/31/2026 6/30/2026 9/30/2026 6/30/2026 9/30/2026 Net Charge-off Composition
Slide 20: Commercial Banking Overview | Momentum in Focus Areas
Commercial Banking Overview | Momentum in Focus Areas New and Increased C&I Loan Originations C&I Loan Balance Trend(1) $ in millions Specialized Corporate & Regional $ in millions Equipment Finance Asset-Based Lending Industries Commercial Banking Mortgage Finance Specialized Industries Equipment F
Slide 21: Commercial Banking Overview | Momentum in Focus Areas
Commercial Banking Overview | Momentum in Focus Areas C&I Loans HFI at September 30, 2026 Change Change 6/30/2026 9/30/2026 QoQ ($) QoQ (%) ($ in millions) Specialized Industries $6,631 $8,048 $1,417 21% Corporate & Regional Commercial Banking 2,424 2,619 195 8% Equipment Finance 4,166 4,333 167 4%
Slide 22: Appendix
Appendix
Slide 23: Specialized Industries | Value-creation Strategy
Specialized Industries | Value-creation Strategy Focused Strategy and Competitive Differentiators Strategy Delivering Results • National model | Fast decisioning | Delivering industry insights • 3Q'26 new credit commitments and new loan originations • Focused on serving the unique needs of specific
Slide 24: Corporate & Regional Commercial Banking | Value-creation Strategy
Corporate & Regional Commercial Banking | Value-creation Strategy Focused Strategy and Competitive Differentiators Strategy Delivering Results • Relationship-based national corporate banking effort focused on the • 3Q'26 new credit commitments and new loan originations diversified industries remaine
Slide 25: Reconciliations of GAAP and Non-GAAP Measures
Reconciliations of GAAP and Non-GAAP Measures Adjusted Non-interest Expense 3Q 2025 4Q 2025 1Q 2026 2Q 2026 3Q 2026 Non-interest expense $522 $509 $466 $450 $464 Less: Intangible asset amortization 26 26 25 23 23 Less: Merger-related and restructuring expenses 17 17 — — — Less: Severance costs 8 4 —
Slide 26: Reconciliations of GAAP and Non-GAAP Measures
Reconciliations of GAAP and Non-GAAP Measures Pre-provision net revenue (loss) 3Q 2025 4Q 2025 1Q 2026 2Q 2026 3Q 2026 FY24 FY2025 Net interest income $425 $467 $443 $440 $460 $2,152 $1,721 Non-interest income 94 90 55 76 70 400 341 Total revenue 519 557 498 516 530 2,552 2,062 Total non-interest ex
Slide 27: Reconciliations of GAAP and Non-GAAP Measures
Reconciliations of GAAP and Non-GAAP Measures Tangible Book Value Per Common Share 9/30/2026 Total stockholders equity (A) $ 7,644 Less: Core deposit and other intangibles 310 Less: Preferred stock 503 Tangible common stockholders equity (B) $ 6,831 Common shares outstanding (C) 400,635,645 Dilution
Slide 28: Peer Group
Peer Group Bank Ticker Citizens Financial CFG Fifth Third Bancorp FITB First Citizens Banc. FCNC.A First Horizon FHN Huntington Banc. HBAN KeyCorp KEY M&T Bank MTB Pinnacle Financial Partners PNFP Regions Financial RF Valley National VLY Western Alliance WAL Zions Bancorp ZION 3rd Quarter 2026 28
Slide 29: Notes
Notes Slide 5 1. Includes warrants and options – warrant and options dilution calculated using Slide 16 the treasury stock method with projected share price based on a 1.0x tangible 1. Current LTV is calculated by dividing the most recent appraised value by the book value multiple current loan amoun