Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — Q1 2026 Earnings Presentation
25 slides from Flagstar Bank, N.a's earnings presentation, Apr 24, 2026
Slide 1: First Quarter 2026 Results
First Quarter 2026 Results April 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: First Quarter 2026 Highlights
First Quarter 2026 Highlights Management Focus Areas 1 2 3 4 Strengthen Execute on C&I Proactive Credit Earnings and Private Bank Management Improvement Power Growth Initiatives of CRE Portfolio • Second consecutive • Grew C&I loans $1.4 • Continued reduction in • Net charge-offs were quarter of pro
Slide 4: 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 5: Commercial Banking Overview | Momentum in Focus Areas
Commercial Banking Overview | Momentum in Focus Areas C&I Loans HFI at March 31, 2026 Change Change 12/31/2025 3/31/2026 QoQ ($) QoQ (%) ($ in millions) Specialized Industries $4,361 $4,956 $595 14% Corporate/Regional Commercial Banking 1,806 2,049 243 13% Equipment Finance(1) 4,331 4,147 (184) (4)%
Slide 6: Diluted Earnings Per Share Trends
Diluted Earnings Per Share Trends Adjusted Diluted EPS Trends (Quarterly) Adjusted Diluted EPS Trends (Annually) $1.80 -$1.90 $0.60 $0.06 -$0.65 $0.04 Includes impact from Reflects EPS recognition of $(0.37) Guidance Range $(0.07) $20.5M (pre-tax) hedge gain, or $0.03 of diluted EPS $(0.14) $(0.23)
Slide 7: Quarterly Performance
Quarterly Performance QUARTERLY PERFORMANCE Reported Notable Adjusted 1Q 2026 Items 1Q 2026 Net interest income $443 $0 $443 Non-interest income 55 9 64 Total revenue 498 9 507 Total non-interest expense 466 — 466 Pre-provision net revenue 32 9 41 Provision for credit losses — — — Pre-tax income 32
Slide 8: Forecast Update
Forecast Update 2026 2027 2026 2027 ($ in millions, except per share data) ($ in millions, except per share data) Net Interest Income $1,950 – $2,050 $2,600 – $2,700 Diluted Adjusted EPS(1) $0.60 – $0.65 $1.80 –$1.90 Net Interest Margin 2.30 – 2.40% 2.70 – 2.80% Efficiency Ratio(2) 70 – 75% 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% 4.50% 4.25% 3.75% 3.75% 3.85% 3.73% Interest-Bearing 3.60% 2.70% - Deposit Costs 3.34% 2.30% - 2.80% 3.13% 2.40% 2.14% 2.15% 1.81% 1.91% 1.89% 1.74% 2.05%(1) +10 bps
Slide 10: Noninterest Expense | Disciplined Management
Noninterest Expense | Disciplined Management Adjusted Operating Expenses(1) Highlights $ in millions • Linked Year: adjusted operating expenses decreased $44 million, or 9% $485 • Linked Quarter: adjusted operating expenses decreased $21 $460 $457 $462 $441 million, or 5% • Reduction in operating ex
Slide 11: Capital | Strong Capital Position
Capital | Strong Capital Position CET1 Ratio Target operating $ in billions range 10.5-11.5% 13.24% CET1 12.83% 12.33% 12.45% 11.90% excess of $1.6B low-end of target range of 10.5% 3/31/2025 6/30/2025 9/30/2025 12/31/2025 3/31/2026 Highlights 1. CET1 ratio of 13.24% 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) 3/31/2026 $66.0 $0.5 $0.5 $0.1 $66.8 Noninterest-Bearing Demand $11.8 $(0.3) Interest-Bearing Demand $12.0 Money Markets $7.3 Savings $15.0 Retail CDs $14.2 Jumbo CDs $6.5 12/31/2025 Private Mort
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 1Q 2026 4Q 2025 Substandard Substandard Payoffs Payoffs CRE payoffs at (%) (%) par of $1.1B with Multi-Family $0.8 billion 40% $1.4 billion 53% 42% of the payoffs from Office $5 million —% $116 mil
Slide 14: Multi-Family | Portfolio Overview
Multi-Family | Portfolio Overview Proactively Reducing Multi-Family (MF) Exposure(1) Highlights $ in billions • Multi-Family portfolio ALLL at 1.83%, among the highest relative to peers(2) | MF ALLL reflects the mix of the -17% company’s loans including the rent-regulated loans $31.5 $30.0 $28.8 • M
Slide 15: Multi-Family | New York City (NYC) Portfolio Details
Multi-Family | New York City (NYC) Portfolio Details NYC Multi-Family Portfolio (as of 3/31/2026) $ 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% $ 5,237 $5.
Slide 16: Multi-Family | New York City (NYC) Credit Details
Multi-Family | New York City (NYC) Credit Details NYC Multi-Family Portfolio (as of 3/31/2026) 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 12/31/2025 3/31/2026 Change in ($ in millions) Allowance ALLL % Allowance ALLL % ALLL % Multi-Family (MF) $549 1.89% $509 1.83% (6) bps MF Rent Regulated >=50% (excl. Co-op) $361 3.44% $330 3.20% (24) 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 $14.0 $12.7 $12.4 $3,005 $12.1 $11.7 $2,682 -16% -11% 3/31/2025 6/30/2025 9/30/2025 12/31/2025 3/31/2026 12/31/2025 3/31/2026 Net Charge-offs to Average Loans(2) Highl
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 • 1Q’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 focus on diverse • 1Q’26 new credit commitments and new loan originations industries remained strong at $640
Slide 22: Reconciliations of GAAP and Non-GAAP Measures
Reconciliations of GAAP and Non-GAAP Measures Adjusted Noninterest Expense 1Q 2025 2Q 2025 3Q 2025 Q4 2025 Q1 2026 Noninterest expense $532 $513 $522 $509 $466 Less: Intangible asset amortization 28 27 26 26 25 Less: Merger-related and restructuring expenses 8 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 3/31/2026 Total stockholders equity $ 8,120 Less: Core deposit and other intangibles 356 Less: Preferred stock 503 Tangible common stockholders equity (A) $ 7,261 Common shares outstanding (B) 416,777,393 Dilution Imp
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 Webster Financial WBS Western Alliance WAL Zions Bancorp ZION
Slide 25: Notes
Notes Slide 3 Slide 13 1. Excludes impact from intangible asset amortization, merger-related 1. Total CRE excludes $2.4 billion of owner-occupied CRE expenses, and other adjustments 2. Calculated as: Total CRE balances (excluding $2.4 billion of owner occupied CRE) / (Tier 1 Capital + Allowance for