Flagstar Bank, National Association (FLG) SEC Filings & Earnings Calls

Credit quality deterioration from NYC rent-regulated multi-family portfolio

“Provision for credit losses increased $58 million primarily from higher interest rates on NYC rent regulated multi-family portfolio; substandard loans up $248M; criticized/classified loans up $670M”

Higher-for-longer interest rate environment delaying strategic objectives

“CEO states full realization of long-term strategic objectives shifted to 2028 from 2027 due to higher for longer interest rate environment”

Deposit competition and persistent inflation headwinds

“CEO cites deposit competition and persistent inflation as headwinds; deposit costs increased 1bp”

NYC Rent Freeze Credit Risk

“The rent freeze applicable to rent-regulated multi-family apartment buildings in New York City, as approved by its Rent Guidelines Board in June 2026 and effective in October 2026, could increase credit risk for loans secured by multi-family properties in New York City by limiting rental revenue growth against rising operating costs.” · word for word

Multi-family Loan Concentration

“Our multi-family loan portfolio decreased $2.1 billion at June 30, 2026 compared to December 31, 2025, primarily due to $1.7 billion of par payoffs since December 31, 2025, with 42 percent of the payoffs from substandard loans.” · word for word

Interest Rate Risk

“At June 30, 2026, the estimated change in NII over the next twelve months for a 100 basis point reduction in short term interest rates with no change in long term interest rates is an increase of 0.72 percent and the estimated change for a 100 basis point increase in short term rates is a decrease of 0.24 percent.” · word for word

Credit quality deterioration: NCOs increased to 0.66% from 0.52%; non-accrual loans rose $123M.

“NCOs to average loans was 0.66% vs. 0.52%; non-accrual loans rose $123 million or 5%.”

CRE payoff risk: $1.1B in CRE par payoffs, 39% substandard; CRE concentration still high at 350%.

“CRE par payoffs totaled $1.1 billion, of which 39% were substandard; CRE concentration ratio 350%.”

Potential dilution of ~2.9% based on current outstanding shares.

“12,000,000 additional shares vs 416,784,450 outstanding”

Multi-family loan concentration and rent regulation exposure

“Of these amounts, $13.5 billion or 89 percent and $13.9 billion or 88 percent were subject to rent regulation laws to varying degrees at March 31, 2026 and December 31, 2025, respectively.” · word for word

Interest-only loan reset risk

“Our multi-family loan portfolio had $5.5 billion outstanding with interest-only payments at March 31, 2026. The weighted average interest-only period remaining was 26.3 months as of March 31, 2026, with approximately 51 percent of these loans entering their amortization period by the end of 2026.” · word for word

Commercial Real Estate Concentration

“The Bank continued to reduce its commercial real estate exposure as total multi-family and commercial real estate loans declined $7.6 billion or 17% compared to December 31, 2025. In addition, our CRE concentration ratio was 381% at December 31, 2025.” · word for word

Net Loss History

“For the year ended December 31, 2025, the Bank reported a net loss of $177 million compared to a net loss of $1,118 million for the year ended 2024.” · word for word

CRE exposure remains elevated but declining; concentration ratio still high at 367%.

“CRE concentration ratio of 367% compared to 381% in prior quarter.” · word for word

NCOs increased to 0.52% from 0.30% due to one borrower relationship in bankruptcy.

“NCOs to average loans was 0.52% vs. 0.30%; excluding NCO related to one borrower relationship in bankruptcy, NCOs were 0.29%.” · word for word

Multi-family credit concentration and rent regulation

“55% of multi-family loans secured by NY properties, 88% subject to rent regulation; non-accrual loans increased 29% YoY.”

Credit rating downgrade risk

“We are currently not in compliance with that criteria. We have received a waiver of these criteria for all of our custodial deposits which could be revoked at any of the agencies' discretion.” · word for word

Interest rate sensitivity

“Estimated change in NII for +200bp shock is -0.4%; EVE sensitivity -2.77% for +200bp.”

CRE exposure remains elevated but declining; concentration ratio still above regulatory thresholds.

“CRE concentration ratio of 381% compared to 405% in prior quarter; still above typical regulatory thresholds of 300%” · word for word

Multi-family loan portfolio still sizable with rent-regulated units requiring higher ACL coverage.

“Multi-family ACL coverage for rent-regulated units equal to or greater than 50% of 3.44%” · word for word

Multi-family loan concentration in rent-regulated NYC properties

“At September 30, 2025, $16.9 billion or 55 percent of our total multi-family loan portfolio was secured by properties in New York State, $14.7 billion or 87 percent of which are subject to rent regulation laws to varying degrees” · word for word

Elevated non-accrual loans

“Non-accrual loans to total loans held for investment 5.17% at September 30, 2025” · word for word

Credit rating downgrade risk

“We are currently not in compliance with that criteria. We have received a waiver of these criteria for all of our custodial deposits which could be revoked at any of the agencies' discretion.” · word for word

Interest-only loan maturity wall

“Our multi-family loan portfolio had $7.7 billion outstanding with interest-only payments at September 30, 2025. The weighted average interest-only period remaining was 21.8 months as of September 30, 2025, with approximately 17 percent of these loans entering their amortization period by the end of 2025 and 59 percent by the end of 2026.” · word for word

Board member departure, though no disagreement cited, may signal governance transition.

“Resignation of director Brian R. Callanan, effective Nov 2, 2025.”

Continued net loss though improving; profitability remains a key challenge.

“The third quarter 2025 net loss was $36 million compared to a net loss of $70 million for the second quarter 2025” · word for word

CRE exposure remains elevated despite $1.9B reduction; multi-family ACL coverage for rent-regulated units at 3.05% indicates stress.

“CRE exposure down $1.9 billion or 5% compared to Q2'25... Multi-family ACL coverage for rent-regulated units equal to or greater than 50% of 3.05%” · word for word

Non-accrual loans rose $88M or 3% QoQ, indicating ongoing credit quality challenges.

“Non-accrual loans rose a modest $88 million or 3% compared to Q2'25” · word for word