Flagstar Bank (FLG) investor relations material

Executive summary

• Q3 NII rose 5% QoQ, NIM expanded 4 bps to 2.17%, and adjusted PPNR increased 6% QoQ.

• C&I loans grew $2.016B QoQ as CRE and multifamily balances declined; net charge-offs were $74M, down $26M QoQ.

• Higher-for-longer rates, deposit competition and credit pressures shifted long-term financial objectives from 2027 to 2028.

Financial highlights

• NII was $460M, total revenue $530M, and net income attributable to common stockholders $3M, or $0.01 per diluted share.

• Provision for credit losses was $76M, up from $18M in Q2; operating expenses were $441M, up 3% QoQ and down 8% YoY.

• Q3 included a $22M tax benefit from settling a legacy federal tax audit, or $0.04 per share.

• Total deposits increased $299M, or 0.4%, QoQ to $67.8B; total assets were $87.4B, down 0.3%.

Outlook and guidance

• Adjusted diluted EPS guidance is $0.10–$0.15 for FY26, $0.85–$0.95 for FY27 and $1.60–$1.70 for FY28; peer-like profitability is targeted for 2028.

• NII guidance is $1.815B–$1.830B for FY26, $2.2B–$2.3B for FY27 and $2.6B–$2.7B for FY28.

• NIM guidance is 2.15%–2.20% for FY26, 2.50%–2.60% for FY27 and 2.85%–2.95% for FY28.

• Adjusted PPNR guidance is $250M–$275M for FY26, $800M–$900M for FY27 and $1.225B–$1.325B for FY28.

• Forecast growth depends on deposit inflows; management expects $800M–$1B of new deposits quarterly and ~$1B in quarterly average balance-sheet growth in 2027 and 2028.