FLAGSTAR BANK REPORTS THIRD QUARTER 2026 NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS OF $0.01 PER DILUTED SHARE

Joseph M. Otting, Executive Chairman and Chief Executive Officer of Flagstar Bank

“Our third quarter results reflect the fact that the Bank's core underlying fundamentals continued to improve despite the emergence of several headwinds, including a higher interest rate environment, deposit competition, persistent inflation, as well as the continuing impact of rent regulation policies on our New York City multi-family portfolio, which pressured our credit costs. We believe we are on track toward achieving our long-term strategic objectives, however given the higher for longer interest rate environment, the full realization of these objectives has shifted to 2028 from 2027.”

Joseph M. Otting, Executive Chairman and Chief Executive Officer of Flagstar Bank

“Notwithstanding these headwinds, during the third quarter, we made progress in multiple areas. Our net interest income increased 5% compared to the previous quarter, net interest margin expanded by 4 basis points, and adjusted pre-provision net revenue improved 6%, reflecting continued momentum in our operating performance.”

Joseph M. Otting, Executive Chairman and Chief Executive Officer of Flagstar Bank

“We also recorded another quarter of solid loan growth driven by broad-based growth across the C&I platform, along with deposit growth within that business. We continue to diversify the balance sheet through a strategic reduction in the multi-family and commercial real estate portfolios, offset by originations of new CRE loans across our footprint. The growth in C&I and the reduction in the multi-family and CRE portfolios are diversifying our loan portfolio. Additionally, the repricing and ongoing reduction of our multi-family portfolios are also positives as we work to improve our loan mix and net interest income.”

Joseph M. Otting, Executive Chairman and Chief Executive Officer of Flagstar Bank

“We believe these trends demonstrate ongoing progress in strengthening our core franchise and improving the quality and composition of our balance sheet. We remain focused on executing our long-term strategic plan of transforming Flagstar into a high performing regional bank. While the current interest rate environment may affect the pace at which we achieve certain objectives, our commitment to the transformation remains unchanged. We will continue to prioritize disciplined risk management, sustainable earnings growth, balance sheet strength, and the consistent execution of our strategic plan to position the Bank for long-term success.”