Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — Q2 2026 Earnings Presentation
25 slides from Flagstar Bank, N.a's earnings presentation, Jul 24, 2026
Slide 1: Second Quarter 2026 Results
Second Quarter 2026 Results July 24, 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: Second Quarter 2026 Highlights
Second Quarter 2026 Highlights Management Focus Areas 1 2 3 4 Strengthen Execute on C&I Proactive Disciplined Earnings and Private Bank Management Credit Power Growth Initiatives of CRE Portfolio Approach • Announced $250 million • Delivered $2.0 billion of • Continued reduction in • Net charge-offs
Slide 4: Diluted Earnings Per Share Trends
Diluted Earnings Per Share Trends Adjusted Diluted EPS Trends (Quarterly) Adjusted Diluted EPS Trends (Annually) $1.60 -$1.70 $0.40 $0.06 $0.04 $0.05 -$0.50 Reflects EPS Includes impact from recognition of $(0.37) Guidance Range $(0.07) $20.5M (pre-tax) hedge gain, or $0.03 of diluted EPS $(0.14) $(
Slide 5: 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 6: Commercial Banking Overview | Momentum in Focus Areas
Commercial Banking Overview | Momentum in Focus Areas C&I Loans HFI at June 30, 2026 Change Change 3/31/2026 6/30/2026 QoQ ($) QoQ (%) ($ in millions) Specialized Industries $4,956 $6,631 $1,675 34% Corporate & Regional Commercial Banking 2,049 2,424 375 18% Equipment Finance(1) 4,147 4,166 19 —% As
Slide 7: Quarterly Performance
Quarterly Performance QUARTERLY PERFORMANCE Reported Notable Adjusted 2Q 2026 Items 2Q 2026 Net interest income $440 $0 $440 Non-interest income 76 (4) 72 Total revenue 516 (4) 512 Total non-interest expense 450 — 450 Pre-provision net revenue 66 (4) 62 Provision for credit losses 18 — 18 Pre-tax in
Slide 8: Forecast Update
Forecast Update 2026 2027 2026 2027 ($ in millions, except per share data) ($ in millions, except per share data) Net Interest Income $1,860 – $1,960 $2,500 – $2,650 Diluted Adjusted EPS(1) $0.40 – $0.50 $1.60 –$1.70 Net Interest Margin 2.20 – 2.30% 2.70 – 2.80% Efficiency Ratio(2) 73 – 78% 50 - 55%
Slide 9: 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% 3.75% 3.75% 3.75% 3.73% 3.60% 2.70% - Interest-Bearing 3.34% 2.80% Deposit Costs 3.13% 3.08% 2.20% - 2.30% 2.14% 2.15% 2.13% 1.81% 1.91% 1.89% 2.05%(1) Reflects
Slide 10: Non-interest Expense | Disciplined Management
Non-interest Expense | Disciplined Management Adjusted Operating Expenses(1) Highlights $ in millions • Linked Year: adjusted operating expenses decreased $33 million, or 7% • Linked Quarter: adjusted operating expenses decreased $14 $460 $457 $462 $441 $427 million, or 3% • Reduction in operating e
Slide 11: 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% 12.33% 12.45% excess of $1.6B low-end of target range of 10.5% 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 Highlights 1. CET1 ratio of 13.16% is top quartile in peer group 2.
Slide 12: Deposits | Overview
Deposits | Overview Well Diversified Deposit Base by Product Deposit Activity $ in billions Balance ($B) 6/30/2026 $66.8 $0.9 $67.5 Noninterest-Bearing Demand $11.7 $(0.3) Interest-Bearing Demand $11.9 Money Markets $8.5 Savings $14.8 Retail CDs $14.4 Jumbo CDs $6.1 3/31/2026 Commercial & Retail 6/3
Slide 13: Commercial Real Estate | Payoffs and CRE Concentration Trends
Commercial Real Estate | Payoffs and CRE Concentration Trends CRE Portfolio Payoffs at Par Total Total 2Q 2026 1Q 2026 Substandard Substandard Payoffs Payoffs CRE payoffs at (%) (%) par of $1.1B with Multi-Family $0.9 billion 44% $0.8 billion 40% 39% of the payoffs from Office $31 million 6% $5 mill
Slide 14: 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 2.87% -16% • Average loan size of $8.8 million $30.0 $28.8 $27.1 $26.0 • NYC MF loans d
Slide 15: Multi-Family | New York City (NYC) Portfolio Details
Multi-Family | New York City (NYC) Portfolio Details NYC Multi-Family Portfolio (as of 6/30/2026) $ 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% $ 4,898 $ 4
Slide 16: Multi-Family | New York City (NYC) Credit Details
Multi-Family | New York City (NYC) Credit Details NYC Multi-Family Portfolio (as of 6/30/2026) Observations $ in millions Loan Review Credit Metrics Book Recent Financials ACL % to Nonaccrual Proactive management of rent Balance Appraisal (1) Reviewed (2) Loans NCOs Loans regulated portfolio (7) Mar
Slide 17: Asset Quality | Allowance for Credit Loss Detail
Asset Quality | Allowance for Credit Loss Detail 3/31/2026 6/30/2026 Change in ($ in millions) Allowance ALLL % Allowance ALLL % ALLL % Multi-Family (MF) $509 1.83% $439 1.63% (20) bps MF Rent Regulated >=50% (excl. Co-op) $330 3.20% $281 2.87% (33) bps MF at Market and Rent Regulated <50% (excl. Co
Slide 18: Asset Quality
Asset Quality Criticized + Classified Loans (including LHFS)(1) Total Non-accrual Loans (including LHFS) $ in billions $ in millions $2,805 $2,682 $12.7 $12.4 $12.1 $11.8 $11.6 -9% 5% 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 3/31/2026 6/30/2026 Net Charge-offs ("NCO") to Average Loans(2) H
Slide 19: Appendix
Appendix
Slide 20: 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 • 2Q’26 new credit commitments and new loan originations • Focused on serving the unique needs of specific
Slide 21: 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 • 2Q’26 new credit commitments and new loan originations diversified industries remaine
Slide 22: Reconciliations of GAAP and Non-GAAP Measures
Reconciliations of GAAP and Non-GAAP Measures Adjusted Non-interest Expense 2Q 2025 3Q 2025 Q4 2025 Q1 2026 Q2 2026 Non-interest expense $513 $522 $509 $466 $450 Less: Intangible asset amortization 27 26 26 25 23 Less: Merger-related and restructuring expenses 14 17 17 — — Less: Severance costs 2 8
Slide 23: Reconciliations of GAAP and Non-GAAP Measures
Reconciliations of GAAP and Non-GAAP Measures Tangible Book Value Per Common Share 6/30/2026 Total stockholders equity (A) $ 8,140 Less: Core deposit and other intangibles 333 Less: Preferred stock 503 Tangible common stockholders equity (B) $ 7,304 Common shares outstanding (C) 417,018,972 Dilution
Slide 24: 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 2nd Quarter 2026 24
Slide 25: Notes
Notes Slide 3 Slide 13 1. Excludes impact from intangible asset amortization, merger-related 1. Total CRE excludes $2.6 billion of owner-occupied CRE expenses, and other adjustments 2. Calculated as: Total CRE balances (excluding $2.6 billion of owner occupied CRE) / (Tier 1 Capital + Allowance for