Flagstar Bank (FLG) investor relations material

Executive summary

• Achieved third consecutive quarter of profitability, with net income attributable to common stockholders of $26 million ($0.06 per diluted share), up from $13 million in Q1 2026 and a net loss of $78 million in Q2 2025.

• Announced a $250 million share repurchase program, reflecting strong capital position and confidence in long-term outlook.

• Record C&I loan production, with $2.0 billion (12%) quarter-over-quarter growth, led by Specialized Industries and Corporate/Regional Commercial Banking.

• Continued disciplined cost controls and strategic reduction in CRE exposure, with CRE and multifamily portfolios declining $1.5 billion (4%).

• Grew total balance sheet and delivered first positive total loan growth since 2023.

Financial highlights

• Net interest income for Q2 2026 was $440 million; total revenue was $512 million (adjusted).

• Pre-provision net revenue increased 51% sequentially; adjusted PPNR was $62 million, up 51% sequentially and $53 million year-over-year.

• Net income attributable to common stockholders was $0.06 per diluted share (GAAP) and $0.05 (adjusted).

• Operating expenses declined 3% quarter-over-quarter and 10% year-over-year.

• Core deposits grew by over $600 million, with total deposits up $689 million (1%) quarter-over-quarter.

Outlook and guidance

• Adjusted EPS forecast for 2026 is $0.40–$0.50; for 2027, $1.60–$1.70.

• Net interest margin expected to expand to 2.20–2.30% in 2026 and 2.70–2.80% in 2027.

• Balance sheet projected to reach $91.5–$92 billion by end of 2026 and $100 billion by end of 2027.

• Efficiency ratio targeted at 73–78% for 2026, improving to 50–55% in 2027.

• Management expects continued progress in transforming into a top-performing regional bank, focusing on balance sheet diversification and disciplined expense management.