Flagstar Financial (FLG) investor relations material

Strategic overview and transformation

• Built foundational risk infrastructure and credit processes, positioning as a $90 billion bank in major U.S. markets.

• Strategic plan targets top 25% performance among regional banks, strong risk culture, and customer-centricity.

• Achieved profitability in Q4 2025, pivoting from stabilization to growth with a diversified balance sheet across CRE, C&I, and consumer segments.

• Significant investments in technology, risk, compliance, and talent to support growth and operational excellence.

• Employee engagement and STAR Values introduced to align culture with strategic direction.

Economic and industry outlook

• Optimism prevails among clients and business owners, with expectations of 2%-3% GDP growth and contained inflation.

• Clients are investing for the future, and the environment is seen as constructive despite some concerns over oil prices and geopolitics.

• No negative sentiment reported from recent client events nationwide.

Commercial and C&I growth

• C&I business generating $2 billion in outstandings per quarter, with ambitions to reach $10 billion in quarterly originations.

• Hiring focus on experienced, mid-career bankers from large OCC-regulated banks to drive C&I and industry vertical growth.

• Portfolio is granular and diversified, with average loan size of $25 million and strong spreads to SOFR.

• Plan to hire 40-60 additional C&I bankers in the year to accelerate net loan growth.