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

NET INTEREST INCOME ROSE $20 MILLION OR 5% WHILE THE NET INTEREST MARGIN INCREASED FOUR BASIS POINTS TO 2.17% TOTAL LOANS INCREASED FOR A SECOND CONSECUTIVE QUARTER UP $958 MILLION OR 6% ANNUALIZED, DRIVEN BY CONTINUED MOMENTUM IN THE COMMERCIAL BANKING BUSINESS AS C&I LOANS INCREASED $2.0 BILLION OR 11% COMMERCIAL BANKING DEPOSITS GREW $0.6 BILLION OR 7% REFLECTING OUR RELATIONSHIP DRIVEN GROWTH STRATEGY TOTAL CRE PAR PAYOFFS TOTALED $1.2 BILLION, OF WHICH 35% WERE SUBSTANDARD; CRE  CONCENTRATION RATIO IMPROVED TO 346% COMPARED TO 350% LAST QUARTER THE PROVISION FOR CREDIT LOSSES INCREASED $58 MILLION, PRIMARILY FROM THE IMPACT OF HIGHER INTEREST RATES INCLUDING ON THE NYC RENT REGULATED MULTI-FAMILY PORTFOLIO CET1 CAPITAL RATIO OF 12.38%; COMPLETED $250 MILLION BUYBACK IN EARLY OCTOBER Third Quarter 2026 Compared to Second Quarter 2026 Profitability Capital PPNR of $66 million was unchanged Adjusted PPNR of $66 million , up $4 million or 6% Net interest income rose $20 million or 5% to $460 million Net interest margin increased 4 basis points to 2.17% Deposit costs increased 1 basis point while overall cost of funds rose 2 basis points Operating expenses of $441 million up 3%   CET1 capital ratio of 12.38%, at or above peer group levels Excess capital of $1.2 billion, using low end of target CET1 range of 10.5% Book value per share of $17.82 Tangible book value per share of $17.05 Tangible book value per share adjusted for warrant exercise is $15.56   Balance Sheet Asset Quality Total C&I loans increased $2.0 billion or  11% to $20.6 billion Total loans increased $958 million to $61.9 billion , up 2% or 6% annualized Strategic C&I loan focus areas grew $1.6 billion or 18% Commercial Bank deposits grew $575 million , up 7% Total MF/CRE loans declined $1.1 billion or 3%   Total NYC multi-family loans declined $531 million or 4% Total ACL of $0.9 billion, unchanged, and was 1.50% of total loans HFI: Total multi-family ACL coverage of 1.63% ACL coverage of 2.97% for multi-family loans with 50% or greater rent-regulated units Non-accrual loans were relatively stable Substandard loans increased $248 million or 4% as overall Criticized/Classified loans increased $670 million or 6% NCOs to average loans was 0.49% vs. 0.66%   NEW YORK, Oct. 23, 2026 /PRNewswire/ -- Flagstar Bank, N.A.