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

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.

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.

Second Quarter 2026 Summary Compared to First Quarter 2026 Profitability Capital PPNR of $66 million , up $34 million Adjusted PPNR of $62 million , up $21 million or 51% Operating expenses of $427 million down 3% Positive operating leverage of 7% Net interest margin was relatively unchanged at 2.13% Deposit costs declined 5 basis points while overall cost of funds declined 7 basis points CET1 capital ratio of 13.16%, at or above peer group levels Excess capital of $1.6 billion, using low end of target CET1 range of 10.5% Book value per share of $18.31 Tangible book value per share of $17.51 Tangible book value per share adjusted for warrant exercise is $15.54 Balance Sheet Asset Quality Total C&I loans increased $2.0 billion or 12% to $18.6 billion Total loans increased $562 million to $61.0 billion , up 1% or 4% annualized Total deposits increased $689 million or 1% Core deposits grew $644 million or 1% C&I and Private Bank deposits grew $905 million , up 4% Strategic C&I loan focus areas grew $2.1 billion or 29% Total MF/CRE exposure down $1.5 billion or 4% Wholesale borrowings, mainly FHLB advances, declined $250 million or 2% Criticized/Classified loans declined $143 million or 1% Substandard loans declined $369 million or 6% Non-accrual loans rose $123 million or 5% Total ACL of $0.9 billion or 1.52% of total loans HFI Total multi-family ACL coverage of 1.63% ACL coverage of 2.87% for multi-family loans with 50% or greater rent-regulated units Total NYC multi-family loans declined $677 million or 5% Total NYC multi-family loans with 50% or greater rent-regulated units declined $338 million or 4% NCOs to average loans was 0.66% vs. 0.52%