Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — Q3 2025 Earnings Presentation
24 slides from Flagstar Bank, N.a's earnings presentation, Oct 24, 2025
Slide 1: Third Quarter 2025 Results
Third Quarter 2025 Results October 24, 2025
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: Momentum Continued During Third Quarter 2025
Momentum Continued During Third Quarter 2025 Management Focus Areas 1 2 3 4 Improve Execute on C&I Proactive Credit Earnings and Private Bank Management Improvement Profile Growth Initiatives of CRE Portfolio Expanded NIM; Grew C&I $448 Continue reduction Lower provision for further reduced
Slide 4: Commercial Banking Overview | Momentum in Focus Areas
Commercial Banking Overview | Momentum in Focus Areas C&I Loans HFI at 9/30/2025 Change Change Change Change Two-pronged strategy 9/30/25 QoQ ($) QoQ (%) YTD ($) YTD (%) ($ in millions) gaining momentum driving Specialized Industries & total commercial and Corporate/Regional $5,142 $1,108 27.5% $1,6
Slide 5: Commercial Banking Overview | Momentum in Focus Areas
Commercial Banking Overview | Momentum in Focus Areas New and Increased C&I Loan Originations New and Increased C&I Loan Commitments Flagstar Financial & Leasing Specialty Finance $ in millions Flagstar Financial & Leasing Specialty Finance $ in millions Specialized Industries Regional Commercial &
Slide 6: Specialized Industries | Value-creation Strategy
Specialized Industries | Value-creation Strategy Focused Strategy and Competitive Differentiators Strategy Delivering Results National model | Fast decisioning 3Q’25 new credit commitments of $1.3 billion, up $197 Focused on serving the unique needs of specific industries million, or 18% compa
Slide 7: Regional Commercial & Corporate Banking | Value-creation Strategy
Regional Commercial & Corporate Banking | Value-creation Strategy Focused Strategy and Competitive Differentiators Strategy Delivering Results Relationship based national corporate banking focus on diverse 3Q’25 new credit commitments of $795 million, up $551 industries million, or 227% compared
Slide 8: Strengthened Balance Sheet
Strengthened Balance Sheet Key Balance Sheet Metrics Improved Since Beginning of 2024 Common Equity Allowance for Credit Cash & Securities Wholesale Borrowings Tier 1 Ratio Losses to LHFI to Total Assets to Total Assets Target operating range 10.5-11.5% 25.8% 12.5% 1.80% 17.7% 17.4% 9.1% 1.23% 14.4%
Slide 9: Diluted Earnings Per Share | Progress Toward Profitability
Diluted Earnings Per Share | Progress Toward Profitability Adjusted Diluted EPS Trends $2.10 - $2.20 $0.75 - $0.80 +42% +43% +39% +50% Reflects EPS Guidance Range $(0.14) $(0.07) FY25 FY26 FY27 $(0.23) $(0.40) ($0.41 - $(0.69) $0.36) 3Q’24 4Q’24 1Q’25 2Q’25 3Q’25 FY’25 FY’26 FY’27 3Q'24 4Q'24 1Q'25
Slide 10: Quarterly Performance
Quarterly Performance QUARTERLY PERFORMANCE Reported Notable Adjusted 3Q 2025 Items 3Q 2025 Net interest income $425 $- $425 Non-interest income 94 (21) 73 Total revenue $519 $(21) $498 Total non-interest expense 522 (39) 484 Pre-provision net (loss) revenue $(3) $18 $15 Provision for credit losses
Slide 11: Forecast Update
Forecast Update ($ in millions, except per 2025 2026 2027 2025 2026 2027 share data) $1,700 – $2,250 – $2,900 – Diluted Adjusted ($0.41 - Net Interest Income $0.75 – $0.80 $2.10 –$2.20 $1,750 $2,300 $3,000 EPS(1) $0.36) Net Interest Margin 1.85 – 1.95% 2.40 – 2.60% 2.80 – 2.90% Efficiency Ratio(2) 8
Slide 12: Net Interest Margin | Proactively Managing Higher
Net Interest Margin | Proactively Managing Higher Net Interest Margin 5.00% Fed Funds Rate 4.50% 4.50% 4.50% 4.25% 4.37% 4.19% Interest-Bearing 3.85% 3.74% Deposit Costs 3.60% 2.80% - 2.40% - 2.90% 1.85% - 2.60% 1.79% 1.81% 1.91% 1.95% 1.73% 1.74% Reflects NIM Guidance Range 9/30/24 12/31/24 3/31/25
Slide 13: Noninterest Expense | Disciplined Management
Noninterest Expense | Disciplined Management Adjusted Operating Expenses(1) Highlights $ in millions Linked Year: adjusted operating expenses decreased $199 million, or 30% $656 Linked Quarter: adjusted operating expenses decreased $3 million, or 1% $556 $485 Linked year decrease of $199 milli
Slide 14: Capital | Strong Capital Position
Capital | Strong Capital Position CET1 Ratio 12.32% 12.45% 11.83% 11.90% Target operating range 10.5-11.5% 10.76% 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 Highlights 1. CET1 ratio of 12.45% is top quartile in peer group 2. Significant management action preserved and strengthened capital position 3.
Slide 15: Deposits | Overview
Deposits | Overview Well Diversified Deposit Base by Product Deposit Activity $ in billions Balance ($B) 9/30/25 Noninterest-Bearing Demand $11.9 $69.7 $1.4 $69.2 Interest-Bearing Demand $13.4 $(2.0) Money Markets $6.7 Savings $14.8 Retail CDs $15.2 Jumbo CDs $7.1 6/30/25 Brokered Commercial 9/30/25
Slide 16: Commercial Real Estate | Payoffs and CRE Concentration Trends
Commercial Real Estate | Payoffs and CRE Concentration Trends CRE Portfolio Payoffs at Par Total Total 3Q’25 YTD’25 Substandard Substandard Payoffs Payoffs (%) (%) CRE payoffs at par of $1.3B with Multi-Family $947 million 43% $2.8 billion 51% 42% of the payoffs from Office $12 million 0% $70 millio
Slide 17: 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 company’s loans including the rent-regulated loans -13% $33.1 MF rent regul
Slide 18: Multi-Family | New York City (NYC) Portfolio Details
Multi-Family | New York City (NYC) Portfolio Details NYC Multi-Family Portfolio (as of 9/30/2025) $ in millions Portfolio Characteristics Loan Review Credit Metrics Book Average Occ Current Amort Recent (3) Financials ACL % to Nonaccrual (1) (2) (4) Balance Balance Rate LTV DSCR Appraisal Reviewed L
Slide 19: Asset Quality | Allowance for Credit Loss Detail
Asset Quality | Allowance for Credit Loss Detail 6/30/2025 9/30/2025 Change in ($ in millions) Allowance ALLL % Allowance ALLL % ALLL % Multi-Family (MF) $538 1.68% $558 1.83% 15 bps MF Rent Regulated >=50% (excl. Co-op) $347 2.88% $343 3.05% 17 bps MF at Market and Rent Regulated <50% (excl. Co-op)
Slide 20: Asset Quality
Asset Quality Criticized + Classified Loans(1) Total Non-accrual Loans (including LHFS) $ in billions $ in millions $14.3 $14.9 $3,272 $14.0 $3,184 $12.7 $12.1 2.8% -19% 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 6/30/25 9/30/25 Net Charge-offs to Average Loans(2) Highlights Criticized + classified
Slide 21: Appendix
Appendix
Slide 22: Capital and Liquidity Position
Capital and Liquidity Position Flagstar Flagstar Flagstar Peer Banks Q3’24 Q2’25 Q3’25 Most Recent Available CET1 Ratio 10.76% 12.33%(1) 12.45%(1) 11.00% CET1 Ratio 10.11% 11.42%(1)(2) 11.61%(1)(2) 10.12% (inclusive of AOCI)(1)(2) Loan to Deposit Ratio 86% 92% 91% 81% Cash + Securities / Assets 29%
Slide 23: Reconciliations of GAAP and Non-GAAP Measures
Reconciliations of GAAP and Non-GAAP Measures Adjusted Noninterest Expense Three Months Three Months Three Months Three Months Three Months Ended Ended Ended Ended Ended 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 Noninterest expense $716 $718 $532 $513 $522 Less: Intangible asset amortizatio
Slide 24: Peer Group
Peer Group Bank Ticker Citizens Financial CFG Comerica CMA 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 Synovus Financial SNV Valley National VLY Webster Financial WBS Weste