Flagstar Bank, N.a. · NYSE:FLG
Flagstar Bank, N.a — Q4 2025 Earnings Presentation
29 slides from Flagstar Bank, N.a's earnings presentation, Jan 30, 2026
Slide 1: Fourth Quarter 2025 Results
Fourth Quarter 2025 Results January 30, 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: Transformation Strategy Produced Clear Results Restoring Profitability
Transformation Strategy Produced Clear Results Restoring Profitability 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 Returned to Grew C&I $343 million, Continue reduction in
Slide 4: Disciplined Execution of Key Initiatives Driving Growth in 2026
Disciplined Execution of Key Initiatives Driving Growth in 2026 2024 2025 2026 (Transitional) (Transformation) (Growth & Sustainability) Assembled a Strong Management Improved Earnings Profile Strengthen Earnings Power Team and Board of Directors Returned bank to profitability Full year of p
Slide 5: 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% 24.7% 12.8% 1.79% 18.1% 17.8% 9.1% 1.23% 12.7%
Slide 6: 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 Equipment Finance Asset-Based Lending $ in millions Equipment Finance Asset-Based Lending $ in millions Specialized Industries Corporate & Regional Commercial Speciali
Slide 7: Commercial Banking Overview | Momentum in Focus Areas
Commercial Banking Overview | Momentum in Focus Areas C&I Loans HFI at 12/31/2025 Two-pronged strategy Change Change Change Change 12/31/25 ($ in millions) QoQ ($) QoQ (%) YTD ($) YTD (%) gaining momentum driving total commercial and Specialized Industries(1) $4,361 $1,132 35.1% $2,254 107.0% indust
Slide 8: Diluted Earnings Per Share | Return to Profitability
Diluted Earnings Per Share | Return to Profitability Adjusted Diluted EPS Trends (Quarterly) Adjusted Diluted EPS Trends (Annually) $1.90 - $2.00 $0.65 - +186% $0.70 $0.06 +43% +39% +50% Reflects EPS $(0.07) Guidance Range $(0.37) $(0.14) $(0.23) $(0.40) $(2.68) (1) (1) 4Q’24 1Q’25 2Q’25 3Q’25 4Q’25
Slide 9: Quarterly Performance
Quarterly Performance QUARTERLY PERFORMANCE Reported Notable Adjusted 4Q 2025 Items 4Q 2025 Net interest income $467 $- $467 Non-interest income 90 (9) 81 Total revenue $557 $(9) $548 Total non-interest expense 509 (21) 488 Pre-provision net revenue $48 $12 $60 Provision for credit losses 3 - 3 Pre-
Slide 10: Forecast Update
Forecast Update 2026 2027 2026 2027 ($ in millions, except per share data) ($ in millions, except per share data) Net Interest Income $2,150 – $2,200 $2,800 – $2,900 Diluted Adjusted EPS(1) $0.65 – $0.70 $1.90 –$2.00 Net Interest Margin 2.40 – 2.60% 2.80 – 2.90% Efficiency Ratio(2) 65 – 70% ~50% Pro
Slide 11: Delivering Organic Growth and Balance Sheet Diversification
Delivering Organic Growth and Balance Sheet Diversification Expected Outlook on Balance Sheet Growth $ in billions | end of period ~8% Growth Cash & Multi-family Securities Run-off Other Loan Growth $2.0 - $3.0B C&I ($3.5 - $5.0B) Driven by: $93.5 - $95.5B Growth $1.5 - $2.5B • Proactive Driven by:
Slide 12: Net Interest Margin | Proactively Managing Higher
Net Interest Margin | Proactively Managing Higher Net Interest Margin Fed Funds Rate 4.50% 4.50% 4.50% 4.25% 3.75% 4.19% 3.85% 3.74% Interest-Bearing 3.60% Deposit Costs 3.34% 2.80% - 2.40% - 2.90% 2.60% 2.14% 1.81% 1.91% 1.89% 1.73% 1.74% 2.05%(1) Reflects NIM Guidance Range 4Q24 1Q25 2Q25 3Q25 4Q2
Slide 13: Noninterest Expense | Disciplined Management
Noninterest Expense | Disciplined Management Adjusted Operating Expenses(1) Highlights $ in millions Linked Year: adjusted operating expenses decreased $94 million, or 17% $556 Linked Quarter: adjusted operating expenses increased $5 $485 million, or 1% $460 $457 $462 Reduction in operating ex
Slide 14: Capital | Strong Capital Position
Capital | Strong Capital Position CET1 Ratio Target operating $ in billions range 10.5-11.5% 12.83% CET1 $s in 12.32% 12.45% excess of 11.83% 11.90% $1.4B low-end of target range of 10.5% 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25 Highlights 1. CET1 ratio of 12.83% is top quartile in peer group 2. Si
Slide 15: Deposits | Overview
Deposits | Overview Well Diversified Deposit Base by Product Deposit Activity $ in billions Balance ($B) 12/31/25 Noninterest-Bearing Demand $12.1 $69.2 $66.0 Interest-Bearing Demand $11.6 $(1.7) $(1.4) Money Markets $6.6 Savings $14.9 Retail CDs $14.3 Jumbo CDs $6.6 9/30/25 Brokered Mortgage 12/31/
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 4Q’25 2025 Substandard Substandard Payoffs Payoffs (%) (%) CRE payoffs at par of $1.8B with Multi-Family $1.4 billion 53% $4.2 billion 52% 50% of the payoffs from Office $116 million 6% $182 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 1.89%, among the highest relative to peers(2) | MF ALLL reflects the mix of the company’s loans including the rent-regulated loans -15% $32.0 MF rent regulat
Slide 18: Multi-Family | New York City (NYC) Portfolio Details
Multi-Family | New York City (NYC) Portfolio Details NYC Multi-Family Portfolio (as of 12/31/2025) $ in millions Portfolio Characteristics Loan Resets Book Average Occ Current Amortizing Reset < 18 Repriced or (1) (2) Balance Balance Rate LTV DSCR Repriced Months < 18 Months Market & <50% $ 5,452 $
Slide 19: Multi-Family | New York City (NYC) Credit Details
Multi-Family | New York City (NYC) Credit Details NYC Multi-Family Portfolio (as of 12/31/2025) 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 20: Asset Quality | Allowance for Credit Loss Detail
Asset Quality | Allowance for Credit Loss Detail 9/30/2025 12/31/2025 Change in ($ in millions) Allowance ALLL % Allowance ALLL % ALLL % Multi-Family (MF) $558 1.83% $549 1.89% 6 bps MF Rent Regulated >=50% (excl. Co-op) $343 3.05% $361 3.44% 39 bps MF at Market and Rent Regulated <50% (excl. Co-op)
Slide 21: Asset Quality
Asset Quality Criticized + Classified Loans (including LHFS)(1) Total Non-accrual Loans (including LHFS) $ in billions $ in millions $14.9 $3,272 $14.0 $12.7 $3,005 $12.4 $12.1 -19% -8% 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25 9/30/25 12/31/25 Net Charge-offs to Average Loans(2) Highlights Critic
Slide 22: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio Significant De-Risking and Proactive Management of CRE Exposure $ in billions (1) $50.6 6.84% Reserves / Non-Pass CRE Loans (1) ($9.0) $38.3 ($1.0) (2) ($2.3) $2.8 / 7% Nonaccrual Since January 2024 $6.2 / 16% Substandard Par Sub- $s in billions Payoffs Standard % $2
Slide 23: Appendix
Appendix
Slide 24: Specialized Industries | Value-creation Strategy
Specialized Industries | Value-creation Strategy Focused Strategy and Competitive Differentiators Strategy Delivering Results National model | Fast decisioning 4Q’25 new credit commitments of $1.8 billion, up $571 Focused on serving the unique needs of specific industries million, or 45% compa
Slide 25: 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 4Q’25 new credit commitments and new loan originations industries remained strong at $817
Slide 26: Reconciliations of GAAP and Non-GAAP Measures
Reconciliations of GAAP and Non-GAAP Measures Adjusted Noninterest Expense 4Q 2024 1Q 2025 2Q 2025 3Q 2025 4Q 2025 Noninterest expense $718 $532 $513 $522 $509 Less: Intangible asset amortization 31 28 27 26 26 Less: Merger-related and restructuring expenses 11 8 14 17 17 Less: Severance costs 31 --
Slide 27: Reconciliations of GAAP and Non-GAAP Measures
Reconciliations of GAAP and Non-GAAP Measures Tangible Book Value Per Common Share 12/31/2025 Total stockholders equity $8,144 Less: Core deposit and other intangibles 381 Less: Preferred stock 503 Tangible common stockholders equity (A) $7,260 Common shares outstanding (B) 415,982,036 Dilution Impa
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 Webster Financial WBS Western Alliance WAL Zions Bancorp ZION
Slide 29: Notes
Notes Slide 3 Slide 17 1. Excludes impact from intangible asset amortization, merger-related 1. Reflects Multi-family UPB excluding Co-op loans expenses, and other adjustments 2. Northeast Multi-Family peers include banks with disclosed Multi-Family ALLL ratios: BPOP and EWBC as of 12/31/25, FFIC as