FLAGSTAR BANK, NATIONAL ASSOCIATION

Flagstar Bank, N.A. announced preliminary voting results from its 2026 Annual Shareholders' Meeting, confirming the approval of all four proposals. These included the election of eight directors, ratification of KPMG LLP as auditor, advisory approval of executive compensation, and an amendment to the 2020 Omnibus Incentive Plan to increase reserved shares by 12,000,000. The company noted strong shareholder participation with nearly 90% of total shares outstanding voted.

Flagstar Bank announced significant leadership updates, extending Executive Chairman and CEO Joseph M. Otting's employment agreement through March 6, 2028. As part of these changes, Mr. Otting will relinquish the President title, while Richard Raffetto and Lee Smith were named Co-Presidents and Co-Chief Operating Officers with expanded responsibilities. Additionally, Bao Nguyen was appointed Chief Legal Officer and COO for Consumer and Retail Banking, Peter Sullivan became General Counsel, and Sydney Menefee will assume the role of Chief Audit Executive. These changes aim to strengthen the executive management team and support the bank's long-term strategic plan and succession planning.

Flagstar Bank reported net income of $21 million, or $0.03 per diluted share, for Q1 2026, a significant improvement from a net loss of $100 million in Q1 2025, though down from $29 million in Q4 2025. The bank recorded zero provision for credit losses, down from $79 million in the prior year. Net interest income increased to $443 million YoY, with net interest margin rising to 2.15%. The company continues its strategic transformation, diversifying its loan portfolio by reducing multi-family and CRE exposure while growing commercial and industrial loans.

Flagstar Bank, N.A. reported a significant turnaround in 2025, returning to profitability in the fourth quarter with $21 million in net income attributable to common shareholders. The full-year net loss improved substantially to $210 million from $1,153 million in 2024, driven by disciplined execution of its strategic plan. Key actions included strengthening the balance sheet, reducing commercial real estate exposure by $7.6 billion, growing C&I lending, and reducing operating expenses by $683 million. The company also completed a corporate reorganization, eliminating its holding company structure and declassifying its Board.

Flagstar Bank reported net income attributable to common stockholders of $0.03 per diluted share for Q1 2026, marking its second consecutive quarter of profitability. Adjusted net income was $0.04 per diluted share. The bank saw strong growth in C&I lending, with total C&I loans increasing by $1.4 billion or 9%, alongside a 2% rise in core deposits. Credit quality improved significantly, with non-accrual loans declining 11% and criticized/classified loans down 3%.