FLAGSTAR BANK, NATIONAL ASSOCIATION

For the period ended Mar 31, 2025. Filed May 9, 2025.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2025 · Filed May 9, 2025

FLG$10.51-0.7%Stored close · as of Nov 10, 2026

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Contents

Item 1. Condensed Consolidated Financial Statements

ITEM 1.	FINANCIAL STATEMENTS

Condensed Consolidated Statements of Financial Condition

	March 31, 2025	December 31, 2024
(in millions, except per share data) · (unaudited)
ASSETS:
Cash and cash equivalents	$12,614	$15,430
Securities:
Debt Securities available-for-sale	12,826	10,402
Equity investments with readily determinable fair values, at fair value	14	14
Total securities	12,840	10,416
Loans held for sale	531	899
Loans and leases held for investment, net of deferred loan fees and costs	66,592	68,272
Less: Allowance for credit losses on loans and leases, held for investment	(1,168)	(1,201)
Total loans and leases held for investment, net	65,424	67,071
Federal Home Loan Bank stock and Federal Reserve Bank stock, at cost	1,061	1,146
Premises and equipment, net	486	562
Core deposit and other intangibles	459	488
Bank-owned life insurance	1,615	1,605
Other assets	2,598	2,543
Total assets	$97,628	$100,160
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits:
Interest-bearing checking and money market accounts	$20,809	$20,780
Savings accounts	14,465	14,282
Certificates of deposit	25,887	27,324
Non-interest-bearing accounts	12,745	13,484
Total deposits	73,906	75,870
Borrowed funds:
Wholesale borrowings	13,150	13,400
Junior subordinated debentures	583	582
Subordinated notes	445	444
Total borrowed funds	14,178	14,426
Other liabilities	1,390	1,696
Total liabilities	89,474	91,992
Commitment and contingencies (refer to Note 17)
Mezzanine equity:
Preferred stock - Series B	1	1
Stockholders' equity:
Preferred stock - Series A and D	503	503
Common stock at par 0.01 (666,666,666 and 666,666,666 shares authorized; 422,502,724 and 422,416,178shares issued; and 415,021,890 and 414,934,628 shares outstanding, respectively)	4	4
Paid-in capital in excess of par	9,286	9,282
(Accumulated deficit)	(875)	(763)
Treasury stock, at cost (7,480,834 and 7,481,550 shares, respectively)	(212)	(219)
Accumulated other comprehensive loss, net of tax	(553)	(640)
Total stockholders’ equity	8,153	8,167
Total liabilities, mezzanine and stockholders’ equity	$97,628	$100,160

Condensed Consolidated Statements of (Loss) Income

	Three Months Ended March 31,
(in millions, except per share data)	2025	2024
INTEREST INCOME:
Loans and leases	$860	$1,193
Securities and money market investments	304	320
Total interest income	1,164	1,513
INTEREST EXPENSE:
Interest-bearing checking and money market accounts	167	232
Savings accounts	111	47
Certificates of deposit	308	291
Borrowed funds	168	319
Total interest expense	754	889
Net interest income	410	624
Provision for credit losses	79	315
Net interest income after provision for credit loan losses	331	309
NON-INTEREST INCOME:
Fee income	22	34
Bank-owned life insurance	10	10
Net return on mortgage servicing rights	—	21
Net gain on loan sales and securitizations	13	20
Net loan administration income	4	16
Bargain purchase gain	—	(121)
Other	31	29
Total non-interest income	80	9
NON-INTEREST EXPENSE:
Operating expenses:
Compensation and benefits	244	333
FDIC insurance	50	50
Occupancy and equipment	55	52
General and administrative	147	186
Total operating expense	496	621
Intangible asset amortization	28	35
Merger-related and restructuring expenses	8	43
Total non-interest expense	532	699
(Loss) before income taxes	(121)	(381)
Income tax (benefit)	(21)	(54)
Net (loss)	$(100)	$(327)
Preferred stock dividends	8	8
Net (loss) attributable to common stockholders	$(108)	$(335)
Basic (loss) per common share(1)	$(0.26)	$(1.36)
Diluted (loss) per common share(1)	$(0.26)	$(1.36)

(1)On June 27, 2024, the Company announced a 1 for 3 reverse stock split, effective July 11, 2024. This reverse stock split is reflected retroactively in all periods presented. See Note 1 - Organization and Basis of Presentation.

Condensed Consolidated Statements of Comprehensive (Loss) Income

	Three Months Ended March 31,
(in millions)	2025	2024
Net (loss)	$(100)	$(327)
Other comprehensive (loss) income, net of tax:
Debt securities available for sale	93	(70)
Pension and post-retirement obligations	1	1
Cash flow hedges	(7)	51
Total other comprehensive (loss) income, net of tax	$87	$(18)
Total comprehensive (loss), net of tax	$(13)	$(345)
Income tax expense (benefit) of items included in other comprehensive income:
Debt securities available for sale	$33	$23
Pension and post-retirement obligations	—	(1)
Cash flow hedges	(2)	(23)

See accompanying notes to the consolidated financial statements

Condensed Consolidated Statements of Changes in Stockholders' Equity

(in millions, except share data) · Shares Outstanding · Preferred Stock A (Par Value: $0.01) · Common Stock (Par Value: $0.01) · Paid-in Capital in excess of Par · (Accumulated deficit)/Retained Earnings · Treasury Stock, at Cost · Accumulated Other Comprehensive Loss, Net of Tax · Total Stockholders’ Equity · Preferred Stock Mezzanine (Par Value: $0.01)
Balance at December 31, 2024	414,934,628	$503		$4		$9,282		$(763)		$(219)		$(640)		$8,167		$1
Shares issued for restricted stock, net of forfeitures	463,831	—		—		(11)		—		11		—		—		—
Compensation expense related to restricted stock awards	—	—		—		15		—		—		—		15		—
Net (loss)	—	—		—		—		(100)		—		—		(100)		—
Dividends paid on common stock ($0.01)	—	—		—		—		(4)		—		—		(4)		—
Dividends paid on preferred stock ($15.94), Series B ($3.33)	—	—		—		—		(8)		—		—		(8)		—
Purchase of common stock	(376,569)		—		—		—		—		(4)		—		(4)		—
Other comprehensive income, net of tax	—	—		—		—		—		—		87		87		—
Balance at March 31, 2025	415,021,890		$503		$4		$9,286		$(875)		$(212)		$(553)		$8,153		$1
Balance at December 31, 2023(1)	240,688,790	$503		$2		$8,236		$443		$(218)		$(599)		$8,367		$—
Issuance of mezzanine preferred stock Series B, net (192,062 shares)	—		—		—		—		—		—		—		—		258
Issuance of mezzanine preferred stock Series C, net (256,307 shares)	—		—		—		—		—		—		—		—		337
Issuance of Common Shares for the Conversion of Series C preferred, net(1)	2,250,333		—		—		9		—		—		—		9		—
Issuance of Common Shares for March 2024 capital raise(1)	25,543,655			1		101						102
Issuance of warrants to purchase common shares	—		—		—		302		—		—		—		302		—
Shares issued for restricted stock, net of forfeitures(1)	(86,865)		—		—		(1)		—		1		—		—		—
Compensation expense related to restricted stock awards	—		—		—		6		—		—		—		6		—
Net (loss)	—		—		—		—		(327)		—		—		(327)		—
Dividends paid on common stock ($0.15)(1)	—		—		—		—		(35)		—		—		(35)		—
Dividends paid on preferred stock ($15.94)	—		—		—		—		(8)		—		—		(8)		—
Purchase of common stock(1)	(300,714)		—		—		—		—		(8)		—		(8)		—
Other comprehensive loss, net of tax	—		—		—		—		—		—		(18)		(18)		—
Balance at March 31, 2024(1)	268,095,199		$503		$3		$8,653		$73		$(225)		$(617)		$8,390		$595

Condensed Consolidated Statements of Cash Flows

	Three Months Ended March 31,
(in millions)	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)	$(100)	$(327)
Adjustments to reconcile net income to net cash used in operating activities:
Provision for credit losses	79	315
Amortization of intangibles	28	35
Depreciation	11	11
Amortization of discounts and premiums, net	32	49
Net gain on sales of loans and securitizations	(13)	(20)
Bargain purchase gain adjustment	—	121
Stock-based compensation	15	6
Deferred tax expense	(26)	(75)
Changes in operating assets and liabilities:
Increase in other miscellaneous assets	(85)	(31)
Decrease in other miscellaneous liabilities	(641)	(476)
Change in loans held for sale, net	110	98
Net cash used in operating activities	(590)	(294)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from repayment of securities available for sale	375	627
Proceeds from sales of securities available for sale including loans that have been securitized	271	123
Purchase of securities available for sale	(2,669)	(812)
Redemption of Federal Home Loan Bank stock	86	5
Purchases of Federal Home Loan Bank and Federal Reserve Bank stock	(1)	(163)
Proceeds from bank-owned life insurance, net	—	6
Net proceeds from sales of MSR's	—	61
Other changes in loans, net	1,525	2,151
Purchases of premises and equipment	(12)	(38)
Net cash (used in) provided by investing activities	(425)	1,960
CASH FLOWS FROM FINANCING ACTIVITIES:
Net decrease in deposits	(1,967)	(6,672)
Net decrease (increase) in short-term borrowed funds	(250)	2,959
Proceeds from long-term borrowed funds	—	10,800
Repayments of long-term borrowed funds	—	(8,301)
Net receipt of payments of loans serviced for others	336	10
Cash dividends paid on common stock	(4)	(8)
Cash dividends paid on preferred stock	(8)	(35)
Proceeds from common stock and warrants issued, net	—	413
Proceeds from preferred stock issued, net	—	595
Payments relating to treasury shares received for restricted stock award tax payments	(4)	(8)
Net cash used in financing activities	(1,897)	(247)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(2,912)	1,419
Cash, cash equivalents, and restricted cash at beginning of period	15,559	11,609
Cash, cash equivalents, and restricted cash at end of period	$12,647	$13,028
Supplemental information:
Cash paid for interest	$817	$777
Cash paid for income taxes	12	9
Non-cash investing and financing activities:
Transfers to repossessed assets from loans	$5	$4
Securitization of loans to mortgage-backed securities available for sale	271	123
Transfer of loans from held for investment to held for sale	273	1,072
Shares issued for restricted stock awards	11	1

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