Flagstar Bank, National Association

The year-over-year decrease was due to the Bank strategically reducing average assets significantly leading to a lower yield on interest-earning assets, partially offset by our strategic paydown of higher cost borrowings and deposits leading to a lower cost of funds.

SEC original ↗Flagstar Bank, National Association — Earnings release (8-K exhibit)EX-99Oct 24, 2025

This was partially offset by a decline in average interest-bearing liabilities, mainly the result of the Company paying off a substantial amount of wholesale borrowings and brokered deposits during 2024 and the first nine months of 2025.

SEC original ↗Flagstar Bank, National Association — Earnings release (8-K exhibit)EX-99Oct 24, 2025

This was partially offset by the redeployment of cash into higher-yielding investment securities and a significant reduction in average wholesale borrowings, along with a lower cost of funds, as we proactively managed retail deposit costs lower and paid off higher cost brokered deposits and wholesale borrowings.

SEC original ↗Flagstar Bank, National Association — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Average total borrowings decreased $11.3 billion or 46% to $13.2 billion while their average cost declined 54 basis points to 4.74% compared to the prior year.

SEC original ↗Flagstar Bank, National Association — Earnings release (8-K exhibit)EX-99Oct 24, 2025

These non-GAAP metrics also provide investors with important indications regarding our ability to grow the business, our ability to pay dividends as well as engage in capital strategies in addition to facilitating meaningful comparisons to other financial institutions, as they are widely used and frequently referenced by investors and analysts.

SEC original ↗Flagstar Bank, National Association — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Cooper 3 8 Litigation settlement 14 14 Net gain on investment security (21) (21) Bargain purchase gain 121 Total adjustments $ 18 $ 25 $ 50 $ 62 $ 248 Tax effect on adjustments (4) (7) (13) (16) (33) Net (loss) income, as adjusted - non-GAAP $ (22) $ (52) $ (243) $ (160) $ $ (715) Preferred stock dividends 9 8 9 25 27 Net (loss) income attributable to common stockholders, as adjusted - non-GAAP $ (31) $ $ (60) $ $ (252) $ $ (185) $ $ (742) (1) Certain merger-related items are not taxable or deductible.

SEC original ↗Flagstar Bank, National Association — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Q2'25 Strategic focus areas grew 28% compared to Q2'25 New commitments of $2.4 billion, up 26% vs.

SEC original ↗Flagstar Bank, National Association — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Otting stated, Our third-quarter 2025 performance provides further evidence that we are successfully executing on each of our strategic priorities, which we first outlined during the first quarter of last year.

SEC original ↗Flagstar Bank, National Association — Earnings release (8-K exhibit)EX-99Oct 24, 2025

As always, we remain focused on executing our strategic plan, including transforming Flagstar into a top-performing regional bank, creating a customer-centric culture firmly grounded in relationships, and effectively managing risk to drive long-term value.

SEC original ↗Flagstar Bank, National Association — Earnings release (8-K exhibit)EX-99Oct 24, 2025

The decrease in total loans and leases HFI for both periods is due to the Bank's strategy to reduce its exposure to multi-family and commercial real estate ( CRE ) loans, while the increase in AFS securities is due to the redeployment of excess cash into higher yielding assets.

SEC original ↗Flagstar Bank, National Association — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Both the linked-quarter and year-to-date declines in CDs were primarily driven by a decline in brokered CDs, as part of the Company's strategy to reduce higher cost funding.

SEC original ↗Flagstar Bank, National Association — Earnings release (8-K exhibit)EX-99Oct 24, 2025

, $8 million in severance, a $14 million litigation settlement, and $17 million of merger-related expenses, the third quarter 2025 net loss attributable to common stockholders was $31 million or $0.07 per diluted share compared to a second quarter 2025 net loss attributable to common stockholders of $60 million or $0.14 per diluted share, a 50% quarter-over-quarter improvement and compared to a third quarter 2024 net loss attributable to common stockholders of $252 million or $0.69 per diluted share, a 89% year-over-year improvement.

SEC original ↗Flagstar Bank, National Association — Earnings release (8-K exhibit)EX-99Oct 24, 2025

For the first nine months of 2025, the Company also had several notable items, including a $21 million fair value gain related to the investment in Figure Technologies, a $14 million litigation settlement, $39 million in merger-related expenses, $12 million in lease cost acceleration related to branch closures, $8 million in trailing costs related to the sale of our mortgage servicing sub-servicing business, and $10 million in severance costs related to branch closures and employee reduction actions.

SEC original ↗Flagstar Bank, National Association — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Cooper 3 -100 % NM Litigation settlement 14 NM NM Net gain on investment security (21) NM NM Pre - provision net revenue (loss), as adjusted (non-GAAP) $ 15 $ 9 $ (43) 67 % -135 % For the third quarter 2025, pre-provision net loss totaled $3 million compared to a pre-provision net loss of $17 million for second quarter 2025 and a pre-provision net loss of $93 million for third quarter 2024.

SEC original ↗Flagstar Bank, National Association — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Third quarter 2025 pre-provision net loss included a $21 million fair value gain related to an equity investment, a $14 million litigation claim settlement and $8 million in severance costs.

SEC original ↗Flagstar Bank, National Association — Earnings release (8-K exhibit)EX-99Oct 24, 2025

Cooper 8 NM Litigation settlement 14 NM Net gain on investment security (21) NM Bargain purchase gain 121 NM Pre - provision net revenue, as adjusted (non-GAAP) $ $ 55 -100 % For the first nine months of 2025, pre-provision net loss was $62 million compared to pre-provision net loss of $193 million for the first nine months of 2024.

SEC original ↗Flagstar Bank, National Association — Earnings release (8-K exhibit)EX-99Oct 24, 2025

The first nine months of 2025 pre-provision net loss included several notable items including a $21 million fair value gain related to an equity investment, a $14 million increase in litigation reserves related to a recent settlement, $10 million in severance costs, $12 million in lease cost acceleration, and $8 million in trailing mortgage sale costs.

SEC original ↗Flagstar Bank, National Association — Earnings release (8-K exhibit)EX-99Oct 24, 2025