FLAGSTAR BANK, NATIONAL ASSOCIATION
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
View on SEC.govAbout 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.
Jun 30, 2026 · Filed Aug 6, 2026
FLG$10.52-0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0000910073-26-000047
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0000910073-26-000068
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 180 previous paragraphs and 185 current paragraphs.
107 unchanged; 63 reworded; 10 added; 8 removed; 2 previous and 5 current paragraphs rearranged.
Tables are not compared: 35 previous and 36 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
During the three months ended June 30, 2026, NIM decreased 2 basis points, and NII decreased $3 million compared to the three months ended March 31, 2026. The decrease in NII was primarily due to higher average balances and rates paid on interest-bearing checking and money market accounts, reflecting deposit pricing adjustments in response to competitive market conditions, as well as lower yields on our loan portfolio as we continued our strategy of diversifying our portfolio. These decreases were partially offset by the continued paydown of borrowed funds.
Current report
For the three months ended June 30, 2026, the provision for credit losses increased $18 million compared to the three months ended March 31, 2026. The increase was primarily due to credit adjustments driven by recent regulatory action in New York City to freeze rents on multifamily properties, higher net charge-offs, and growth in our C&I portfolio. These increases were partially offset by lower reserve requirements resulting from strategic reductions in our multi-family and CRE portfolios.
Current report
(1) Includes $2.6 billion and $2.1 billion of non-servicing custodial deposits as of June 30, 2026 and December 31, 2025, respectively.
Current report
Total deposits at June 30, 2026 increased $1.5 billion compared to December 31, 2025, primarily driven by growth in commercial and private bank deposits, partially offset by lower brokered deposits.
Current report
As a financial institution, interest rate risk represents our primary market risk. Changes in market interest rates can significantly affect the income and expense generated by our interest-earning assets and interest-bearing liabilities, as well as
Current report
Because these assumptions are inherently uncertain, actual results may differ materially from those presented, due to the timing, magnitude, and frequency of changes in market interest rates, changes in yield curve relationships and spreads, customer behavior, including prepayments and deposit repricing categories, and management actions taken in response to changing market conditions.
Current report
With capital levels above our target operating range, we expect to deploy excess capital through the following prioritized approach (1) Organic Growth —Profitable loan growth and other business growth opportunities across the Bank. We view disciplined organic growth as our highest-return use of capital, (2) Shareholder Returns — Capital beyond what is needed to fund our near-term growth plans may be returned to shareholders through stock repurchases and dividends, and (3) Strategic Flexibility — We retain capital capacity to fund future acquisitions and other strategic opportunities as they arise. This framework guides our capital allocation decisions and is evaluated on an ongoing basis by management and the Board.
Current report
On May 15, 2026, the OCC issued two final rules on preemption of state interest-on-escrow laws. First, the OCC codified the longstanding authority of a national bank like Flagstar to establish or maintain real estate lending escrow accounts and to
Current report
exercise judgment as to the terms and conditions of the accounts, including as to interest rates. Second, the OCC issued a preemption determination pursuant to the Dodd-Frank Act procedures concluding that federal law preempts state laws that restrict a national bank's flexibility to decide whether and to what extent to pay interest on escrow accounts and assess fees in connections with such accounts.
Current report
On June 25, 2026, the FDIC proposed to amend the rule requiring resolution plan submissions by certain insured depository institutions with $50 billion or more in total assets. The current rule requires most covered banks to file a full resolution plan every three years, with interim supplements in off-cycle years. Flagstar filed its full resolution plan in July 2025. The FDIC's proposal, among other things, would raise the threshold for determining whether a bank is subject to the rule from $50 billion to $100 billion. If finalized as proposed, Flagstar would not be subject to the rule at its current asset size.
Removed paragraphs (8)
Previous report
During the three months ended March 31, 2026, NIM increased 1 basis point, while NII decreased $24 million compared to the three months ended December 31, 2025. The decrease in NII was primarily due to lower yields on our C&I loan portfolio as a result of a lower interest rate environment, and the non-recurrence of a $20 million hedge gain related to the accelerated repayment of certain FHLB-NY advances during the three months ended December 31, 2025. The decrease was partially offset by lower interest expense on deposits resulting from the paydown of higher-cost deposits.
Previous report
Comparison to Prior Year
Previous report
For the three months ended March 31, 2026, the provision for credit losses decreased $3 million compared to the three months ended December 31, 2025. The decrease was primarily driven by the bankruptcy settlement related to a single borrower and our strategic reduction of our multi-family and CRE portfolios. These decreases were partially offset by growth in our C&I portfolio and higher net charge-offs of $34 million primarily related to the one borrower relationship that was in bankruptcy.
Previous report
Total deposits at March 31, 2026 increased $832 million compared to December 31, 2025, primarily due to growth in money market accounts and custodial interest-bearing checking accounts, partially offset by a decline in non-custodial non-interest bearing deposits and the continued pay down of brokered CDs. The shift in deposit mix reflects our continued focus on reducing our reliance on wholesale funding sources.
Previous report
Where temporary changes in market conditions or volume levels result in significant increases in risk, strategies may involve reducing open positions or employing other balance sheet management activities including the potential use of derivatives to reduce the risk exposure. Where variance from policy tolerances is triggered by more fundamental imbalances in the risk profiles of core loan and deposit products, a remedial strategy may involve restoring balance through natural hedges to the extent possible before employing synthetic hedging techniques. Other strategies might include:
Previous report
•Asset restructuring, involving sales of assets having higher risk profiles, or a gradual restructuring of the asset mix over time to affect the maturity or repricing schedule of assets;
Previous report
•Liability restructuring, whereby product offerings and pricing are altered or wholesale borrowings are employed to affect the maturity structure or repricing of liabilities;
Previous report
•Expansion or shrinkage of the balance sheet to correct imbalances in the repricing or maturity periods between assets and liabilities; and/or
Reworded paragraphs (63)
Previous wording
Flagstar Bank, National Association, is a national banking association headquartered in Hicksville, New York. At March 31, 2026, we had $87.1 billion of assets, $60.7 billion of loans, $66.8 billion of deposits, and total stockholders’ equity of $8.1 billion.
Current wording
Flagstar Bank, National Association, is a national banking association headquartered in Hicksville, New York. At June 30, 2026, we had $87.7 billion of assets, $61.2 billion of loans, $67.5 billion of deposits, and total stockholders’ equity of $8.1 billion.
Previous wording
For the three months ended March 31, 2026, we reported net income of $21 million compared to net income of $29 million for the three months ended December 31, 2025 and a net loss of $100 million for the three months ended March 31, 2025. The net income attributable to common stockholders for the three months ended March 31, 2026 was $13 million, or $0.03 per diluted share compared to net income attributable to common stockholders of $21 million, or $0.05 per diluted share for the three months ended December 31, 2025 and a net loss attributable to common stockholders of $108 million, or $0.26 per diluted share for the three months ended March 31, 2025.
Current wording
For the three months ended June 30, 2026, we reported net income of $34 million compared to net income of $21 million for the three months ended March 31, 2026. The net income attributable to common stockholders for the three months ended June 30, 2026 was $26 million, or $0.06 per diluted share compared to net income attributable to common stockholders of $13 million, or $0.03 per diluted share for the three months ended March 31, 2026.
Previous wording
(1)Comprised of Loans and leases held for investment, net of deferred loan fess and costs, and Loans held for sale.
Current wording
(1)Comprised of Loans and leases held for investment, net of deferred loan fees and costs, and Loans held for sale.
Previous wording
During the three months ended March 31, 2026, NIM increased by 41 basis points and NII increased $33 million compared to the three months ended March 31, 2025. The increase was primarily driven by the paydown of higher-cost deposits and borrowings during the year ended December 31, 2025, and the decision to reinvest cash into higher-earning assets. The increase was partially offset by lower interest income on our multi-family and CRE loan portfolios as a result of our continued strategy of diversifying our loan portfolio.
Current wording
During the six months ended June 30, 2026, NIM increased 37 basis points and NII increased $54 million compared to the six months ended June 30, 2025. The increase was primarily driven by the paydown of higher-cost deposits and borrowings during the year ended December 31, 2025, and the decision to reinvest cash into higher-earning assets. These increases were partially offset by lower yields on our loan portfolio as we continued our strategy of diversifying our loan portfolio.
Previous wording
For the three months ended March 31, 2026, the provision for credit losses decreased $79 million compared to the three months ended March 31, 2025. The decrease was primarily due to our strategic reduction of our multi-family and CRE portfolios and lower net charge-offs.
Current wording
For the six months ended June 30, 2026, the provision for credit losses decreased $125 million compared to the six months ended June 30, 2025. The decrease was primarily due to strategic reductions in our multi-family and CRE portfolios and lower net charge-offs.
Previous wording
For the three months ended March 31, 2026, non-interest income decreased $35 million compared to the three months ended December 31, 2025. The decrease was primarily due to an $18 million reduction in the value of our investment in Figure Technology Solutions, Inc., and lower income from our bank-owned life insurance due to a decrease in death benefit claims.
Current wording
For the three months ended June 30, 2026, non-interest income increased $21 million compared to the three months ended March 31, 2026. The increase was primarily due to a $4 million gain on the sale of our investment in Figure Technology Solutions, Inc. compared to a $9 million loss recognized in the prior quarter, higher income from our bank-owned life insurance driven by death benefit claims, and higher fee income resulting from treasury management and capital markets income.
Previous wording
For the three months ended March 31, 2026, non-interest income decreased $25 million compared to the three months ended March 31, 2025. The decrease in non-interest income was primarily due to a $9 million loss on our investment in Figure Technology Solutions, Inc, and lower gains on loan sales and securitizations resulting from the non-recurrence of gains related to the wind-down of the mortgage third party origination business during the three months ended March 31, 2025.
Current wording
For the six months ended June 30, 2026, non-interest income decreased $26 million compared to the six months ended June 30, 2025. The decrease was primarily due to lower other income driven by lower MSR adjustments, which were elevated in the prior year due to the wind down of the mortgage and servicing operations, a $5 million loss on our investment in Figure Technology Solutions, Inc, and lower gains on loan sales and securitizations resulting from the non-recurrence of prior year gains related to the wind-down of the mortgage and servicing operations. The decrease was partially offset by higher fee income driven by capital market and treasury management income, as well as higher bank-owned life insurance income driven by death benefit claims.
Previous wording
Total non-interest expenses for the three months ended March 31, 2026 decreased $43 million compared to the three months ended December 31, 2025. The decrease was primarily due to lower compensation and benefits expense stemming from actions taken to optimize costs, and the absence of merger-related expenses.
Current wording
Total non-interest expenses for the three months ended June 30, 2026 decreased $16 million compared to the three months ended March 31, 2026. The decrease was primarily due to lower compensation and benefits stemming from the actions taken to optimize costs as well as lower occupancy and equipment costs as result of lower seasonal maintenance activities.
Previous wording
Total non-interest expenses for the three months ended March 31, 2026 decreased $66 million compared to the three months ended March 31, 2025. The decrease was primarily due to lower FDIC insurance expense as a result of improved assessment factors and a reduced asset base, the absence of merger-related expenses, lower compensation and benefits costs stemming from the actions taken to optimize costs, and a decrease in general and administrative expenses reflecting our continued focus on operating expense management.
Current wording
Total non-interest expenses for the six months ended June 30, 2026 decreased $129 million compared to the six months ended June 30, 2025. The decrease was primarily due to lower FDIC insurance expense as a result of improved assessment factors and a reduced asset base, lower compensation and benefits costs stemming from the actions taken to optimize costs, the absence of merger-related expenses, and a decrease in general and administrative expenses reflecting our continued operating expense discipline. These decreases were partially offset by higher software expenses attributable to ongoing infrastructure development and system enhancements.
Previous wording
We compute our tax provision (benefit) for interim periods by applying the estimated annual effective tax rate to our year-to-date income (loss) before income taxes, adjusted for discrete items recognized during the quarter. For the three months ended December 31, 2025 and March 31, 2025, we were unable to make a reliable estimate of our estimated annual effective tax rate as a result of our expected results for 2025; therefore, we used our actual effective tax rate to compute our income tax benefit for those periods. For the three months ended March 31, 2026, we resumed applying the estimated annual effective tax rate methodology.
Current wording
We compute our tax provision (benefit) for interim periods by applying the estimated annual effective tax rate to our year-to-date income (loss) before income taxes, adjusted for discrete items recognized during the quarter. For the six months ended June 30, 2025, we were unable to make a reliable estimate of our estimated annual effective tax rate as a result of our expected results for 2025; therefore, we used our actual effective tax rate to compute our income tax benefit for those periods. During 2026, we resumed applying the estimated annual effective tax rate methodology.
Previous wording
The income tax expense for the three months ended March 31, 2026 decreased by $5 million compared to the three months ended December 31, 2025 primarily as a result of lower pre-tax income.
Current wording
The income tax expense for the three months ended June 30, 2026 increased by $3 million compared to the three months ended March 31, 2026 primarily as a result of higher pre-tax income.
Previous wording
The income tax expense for the three months ended March 31, 2026 increased by $32 million compared to the three months ended March 31, 2025, primarily as a result of the increase in our pre-tax income and the application of our estimated annual effective tax rate for the current period compared to the use of our actual effective tax rate in the prior year.
Current wording
The income tax expense for the six months ended June 30, 2026 increased by $57 million compared to the six months ended June 30, 2025, primarily as a result of the increase in our pre-tax income and the application of our estimated annual effective tax rate for the current period compared to the use of our actual effective tax rate in the prior year.
Previous wording
Total loans and leases held for investment decreased $307 million at March 31, 2026 compared to December 31, 2025, primarily as a result of our continued strategy of diversifying our loan portfolio by reducing our concentration in our multi-family portfolio while growing originations within our C&I portfolio, as well as par payoffs within our CRE portfolio.
Current wording
Total loans and leases held for investment increased $255 million at June 30, 2026 compared to December 31, 2025, primarily as a result of growing originations within our C&I portfolio, partially offset by our continued strategy of diversifying our loan portfolio by reducing our concentration in our multi-family portfolio as well as par payoffs within our CRE portfolio.
Previous wording
(1)Excludes Specialty Finance CRE loans and multi-family loans serviced-by-others totaling $402 million and $96 million respectively. Amounts presented reflect unpaid principal balance; total amortized cost adjustments were $116 million.
Current wording
(1)Excludes Specialty Finance CRE loans and multi-family loans serviced-by-others totaling $65 million and $95 million respectively. Amounts presented reflect unpaid principal balance; total amortized cost adjustments were $138 million.
Previous wording
(3)Excludes $189 million of loans past their contractual maturity date that are in the process of modification or foreclosure.
Current wording
(3)Excludes $132 million of loans past their contractual maturity date that are in the process of modification or foreclosure.
Previous wording
Our multi-family loan portfolio decreased $1.1 billion at March 31, 2026 compared to December 31, 2025, primarily due to $849 million of par payoffs since December 31, 2025, with 40 percent of the payoffs from substandard loans. The reduction in our multi-family loan portfolio is consistent with our strategic decision to continue to diversify our loan portfolio by reducing our exposure to multi-family loans.
Current wording
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. The reduction in our multi-family loan portfolio is consistent with our strategic decision to continue to diversify our loan portfolio by reducing our exposure to multi-family loans.
Previous wording
The majority of our multi-family loan portfolio consists of non-recourse loans secured by rental apartment buildings. As of March 31, 2026 and December 31, 2025, $15.2 billion or 55 percent and $15.8 billion or 55 percent of our total multi-family loan portfolio was secured by properties in New York State, respectively. 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. Additionally, $9.3 billion and $9.5 billion of these loans, as of March 31, 2026 and December 31, 2025, respectively, were secured by properties in which at least 50 percent of the units were rent-regulated.
Current wording
The majority of our multi-family loan portfolio consists of non-recourse loans secured by rental apartment buildings. As of June 30, 2026 and December 31, 2025, $14.6 billion or 54 percent and $15.8 billion or 55 percent of our total multi-family loan portfolio was secured by properties in New York State, respectively. Of these amounts, $12.8 billion or 87 percent and $13.9 billion or 88 percent were subject to rent regulation laws to varying degrees at June 30, 2026 and December 31, 2025, respectively. Additionally, $8.9 billion and $9.5 billion of these loans, as of June 30, 2026 and December 31, 2025, respectively, were secured by properties in which at least 50 percent of the units were rent-regulated.
Previous wording
Historically, our multi-family loans may have contained an initial interest-only period; however, they were underwritten on a fully amortizing basis, including calculation of the DSCR. Whether a borrower qualified for an interest-only period was based on the individual credit profile of the borrower, particularly the loan-to-value of the property. 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.
Current wording
Historically, our multi-family loans may have contained an initial interest-only period; however, they were underwritten on a fully amortizing basis, including calculation of the DSCR. Whether a borrower qualified for an interest-only period was based on the individual credit profile of the borrower, particularly the loan-to-value of the property. Our multi-family loan portfolio had $5.3 billion outstanding with interest-only payments at June 30, 2026. The weighted average interest-only period remaining was 25.4 months as of June 30, 2026, with approximately 31 percent of these loans entering their amortization period by the end of 2026.
Previous wording
At March 31, 2026, CRE loans decreased $481 million compared to December 31, 2025, primarily due to par payoffs.
Current wording
At June 30, 2026, CRE loans decreased $1.1 billion compared to December 31, 2025, primarily due to par payoffs, and paydowns, partially offset by originations since December 31, 2025.
Previous wording
Our C&I loan portfolio increased $1.4 billion at March 31, 2026 compared to December 31, 2025, primarily due to $2.0 billion of new originations driven by $2.6 billion of new and increased loan commitments during the three months ended March 31, 2026, partially offset by paydowns in the existing portfolio.
Current wording
Our C&I loan portfolio increased $3.3 billion at June 30, 2026 compared to December 31, 2025, primarily due to $4.8 billion of new originations driven by $6.8 billion of new and increased loan commitments during the six months ended June 30, 2026, partially offset by paydowns in the existing portfolio. The increase in our C&I loan portfolio was primarily due to continued growth in Specialized Industries and Regional Commercial Banking.
Previous wording
One-to-four family loans increased $10 million at March 31, 2026 compared to December 31, 2025, primarily driven by new originations.
Current wording
One-to-four family loans increased $137 million at June 30, 2026 compared to December 31, 2025, primarily driven by new originations.
Previous wording
One-to-four family loans include various types of conforming and non-conforming fixed and adjustable-rate loans underwritten using Fannie Mae and Freddie Mac guidelines for the purpose of purchasing or refinancing owner occupied and second home properties. The loan-to-value requirements on our residential first mortgage loans vary depending on occupancy, property type, loan amount, and FICO scores. Loans with loan-to-value ratios exceeding 80 percent are required to obtain mortgage insurance. As of March 31, 2026, excluding LGG, loans in this portfolio had an average current FICO score of 744 and an average loan-to-value ratio of 52 percent.
Current wording
One-to-four family loans include various types of conforming and non-conforming fixed and adjustable-rate loans underwritten using Fannie Mae and Freddie Mac guidelines for the purpose of purchasing or refinancing owner occupied and second home properties. The loan-to-value requirements on our residential first mortgage loans vary depending on occupancy, property type, loan amount, and FICO scores. Loans with loan-to-value ratios exceeding 80 percent are required to obtain mortgage insurance. As of June 30, 2026, excluding LGG, loans in this portfolio had an average current FICO score of 744 and an average loan-to-value ratio of 50 percent.
Previous wording
At March 31, 2026, other loans decreased $67 million compared to December 31, 2025, primarily driven by payoffs at par.
Current wording
At June 30, 2026, other loans decreased $106 million compared to December 31, 2025, primarily driven by payoffs at par.
Previous wording
Other loans primarily consist of HELOANs, second mortgage loans, and HELOCs. As of March 31, 2026, loans in this portfolio had an average current FICO score of 758.
Current wording
Other loans primarily consist of HELOANs, second mortgage loans, and HELOCs. As of June 30, 2026, loans in this portfolio had an average current FICO score of 759.
Previous wording
Loans held for sale at March 31, 2026 decreased $32 million compared to December 31, 2025, primarily due to the completion of loan sales during the three months ended March 31, 2026.
Current wording
Loans held for sale at June 30, 2026 decreased $57 million compared to December 31, 2025, primarily due to the completion of loan sales during the six months ended June 30, 2026.
Previous wording
The ACL on loans and leases decreased $76 million from December 31, 2025 to March 31, 2026. The decrease was primarily driven by the paydown of our higher-risk multi-family and CRE portfolios partially offset by growth in our lower-risk C&I portfolio.
Current wording
The ACL on loans and leases as of June 30, 2026 decreased $161 million from December 31, 2025. The decrease was primarily driven by charged-off loans which had specific reserves and declines in our higher-risk multi-family and CRE portfolios, primarily from payoffs.
Previous wording
(1)Excludes $7 million and $30 million of non-accrual held for sale loans at March 31, 2026 and December 31, 2025, respectively.
Current wording
(1)Excludes $5 million and $30 million of non-accrual held for sale loans at June 30, 2026 and December 31, 2025, respectively.
Previous wording
The following table sets forth the changes in non-accrual loans for the three months ended March 31, 2026:
Current wording
The following table sets forth the changes in non-accrual loans for the six months ended June 30, 2026:
Previous wording
During the three months ended March 31, 2026 non-accrual loans decreased $300 million primarily due to the resolution of a single borrower relationship undergoing bankruptcy proceedings. Approximately 33 percent of our non-accrual loans are current on their contractual payment terms.
Current wording
During the six months ended June 30, 2026 non-accrual loans decreased $175 million primarily due to the resolution of a single borrower relationship undergoing bankruptcy proceedings. Approximately 40 percent of our non-accrual loans are current on their contractual payment terms.
Previous wording
As of March 31, 2026, we had $32 million of loans 90 days or more past due that were still accruing interest compared to no loans 90 days or more past due and still accruing interest as of December 31, 2025.
Current wording
As of June 30, 2026, we had $51 million of loans 90 days or more past due that were still accruing interest compared to no loans 90 days or more past due and still accruing interest as of December 31, 2025.
Previous wording
At March 31, 2026, debt securities available-for-sale decreased $1.2 billion compared to December 31, 2025. The decrease was primarily due to scheduled principal paydowns and maturities in the normal course of business. At March 31, 2026, 26 percent of our portfolio is comprised of floating rate securities.
Current wording
At June 30, 2026, debt securities available-for-sale increased $852 million compared to December 31, 2025. The increase was primarily due to our decision to reinvest cash into higher earning assets. At June 30, 2026, 21 percent of our portfolio is comprised of floating rate securities.
Previous wording
At March 31, 2026, debt securities available-for-sale had an estimated weighted average life of 4 years compared to 5 years at December 31, 2025. Mortgage-related securities included in debt securities available-for-sale were $11.8 billion and $13.0 billion at March 31, 2026 and December 31, 2025, respectively.
Current wording
At June 30, 2026, debt securities available-for-sale had an estimated weighted average life of 4 years compared to 5 years at December 31, 2025. Mortgage-related securities included in debt securities available-for-sale were $13.9 billion and $13.0 billion at June 30, 2026 and December 31, 2025, respectively.
Previous wording
(1) Includes brokered certificates of deposit of $2.1 billion and $2.3 billion at March 31, 2026 and December 31, 2025, respectively. Brokered certificates of deposit with balances in excess of $250,000 are fully insured by the FDIC as each of the ultimate owners of the funds maintain balances below FDIC insurance limits.
Current wording
(1) Includes brokered certificates of deposit of $2.2 billion and $2.3 billion at June 30, 2026 and December 31, 2025, respectively. Brokered certificates of deposit with balances in excess of $250,000 are fully insured by the FDIC as each of the ultimate owners of the funds maintain balances below FDIC insurance limits.
Previous wording
At March 31, 2026, our deposit base included $13.6 billion of uninsured deposits that are uninsured or not collateralized by securities or letters of credit. Our uninsured deposits are the portion of deposit accounts that exceed the FDIC insurance limit.
Current wording
At June 30, 2026, our deposit base included $14.5 billion of deposits that are uninsured or not collateralized by securities or letters of credit. Our uninsured deposits are the portion of deposit accounts that exceed the FDIC insurance limit.
Previous wording
As of March 31, 2026, total bank liquidity exceeds the balance of our uninsured deposits by $13.7 billion.
Current wording
As of June 30, 2026, total bank liquidity exceeds the balance of our uninsured deposits by $12.7 billion.
Previous wording
At March 31, 2026 total borrowed funds decreased $998 million compared to December 31, 2025 primarily due to our continued strategy of reducing higher-cost wholesale borrowings.
Current wording
At June 30, 2026 total borrowed funds decreased $1.2 billion compared to December 31, 2025 primarily due to our continued strategy of reducing higher-cost wholesale borrowings.
Previous wording
FHLB advances are secured by eligible collateral in the form of loans and securities, under blanket collateral agreements with the FHLB. As of March 31, 2026 and December 31, 2025 our wholesale borrowings had $250 million and $250 million of callable features, respectively.
Current wording
FHLB advances are secured by eligible collateral in the form of loans and securities, under blanket collateral agreements with the FHLB. As of June 30, 2026 and December 31, 2025, our wholesale borrowings had $250 million of callable features, respectively.
Previous wording
It is our practice to continually review the risk in our loan portfolio. For our multi-family and CRE loan portfolios, we receive financial information from borrowers annually and in some cases more frequently. Generally, updated annual borrower financial information is received during the second calendar quarter. Upon receipt of the borrower financial information, we perform an analysis to determine whether the cash flow from the underlying collateral is sufficient to meet the contractual loan payments, commonly referred to as the DSCR. We consider the ability to cover debt service based upon the current contractual rate or, when a borrower’s initial fixed rate period expires in the near future, the lowest contractual rate reset option available under the loan terms using the current level for referenced indices. Loans that do not have a DSCR of 1.0 or greater are evaluated for a potential downgrade to substandard or non-accrual risk rating. All substandard loans, including non-accrual loans, are appraised at the time of downgrade and are re-appraised annually. Based upon this appraisal the loan is evaluated to determine if an adjustment to the carrying amount is required.
Current wording
It is our practice to continually review the risk in our loan portfolio. For our multi-family and CRE loan portfolios, we receive financial information from borrowers annually and in some cases more frequently. Generally, updated annual borrower financial information is received during the second calendar quarter. Upon receipt of the borrower financial information, we perform an analysis to determine whether the cash flow from the underlying collateral is sufficient to meet the contractual loan payments, commonly referred to as the DSCR. We consider the ability to cover debt service based upon the current contractual rate or, when a borrower’s initial fixed rate period expires in the near future, the lowest contractual rate reset option available under the loan terms using the current level for referenced indices. Loans that do not have a DSCR of 1.0 or greater are evaluated for a potential downgrade to substandard or non-accrual risk rating. All substandard loans, including non-accrual loans, are appraised at the time of downgrade and are re-appraised annually. Based upon this appraisal the loan is evaluated to determine if an adjustment to the carrying amount is required. 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.
Previous wording
As of March 31, 2026, $595 million of multifamily loans have reached their repricing date. Approximately, 88 percent of the loans that repriced during 2026 are current on their contractual payments or paid off during the year.
Current wording
As of June 30, 2026, $1.6 billion of multifamily loans have reached their repricing date. Approximately, 93 percent of the loans that repriced during 2026 are current on their contractual payments or paid off during the year.
Previous wording
Substandard and Non-Accrual loans ("Classified Loans") reflect the potential that a loss may occur if deficiencies in the primary source of repayment are unable to be corrected and borrowers are unwilling or unable to otherwise support the loans. Classified Loans at March 31, 2026 and December 31, 2025 were $8.7 billion and $9.7 billion, respectively. The decrease in Classified Loans is primarily attributable to the par payoffs of multi-family and CRE substandard loans and the resolution of a single borrower relationship undergoing bankruptcy proceedings.
Current wording
Substandard and Non-Accrual loans ("Classified Loans") reflect the potential that a loss may occur if deficiencies in the primary source of repayment are unable to be corrected and borrowers are unwilling or unable to otherwise support the loans. Classified Loans at June 30, 2026 and December 31, 2025 were $8.5 billion and $9.7 billion, respectively. The decrease in Classified Loans is primarily attributable to the par payoffs of multi-family and CRE substandard loans and the resolution of a single borrower relationship undergoing bankruptcy proceedings.
Showing the first 40 of 63 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
For the six months ended June 30, 2026, we reported net income of $55 million compared to net loss of $170 million for the six months ended June 30, 2025. The net income attributable to common stockholders for the six months ended June 30, 2026 was $39 million, or $0.08 per diluted share compared to net loss attributable to common stockholders of $186 million, or $0.45 per diluted share for the six months ended June 30, 2025.
Current report — wording carried from elsewhere
(1)Comprised of Loans and leases held for investment, net of deferred loan fees and costs, and Loans held for sale.
Current report — wording carried from elsewhere
(2)Comprised of Debt securities available-for-sale at amortized cost, Equity investments with readily determinable fair values, at fair value and FHLB stock and FRB-NY stock, at cost.
Current report — wording carried from elsewhere
(1)Six months ended presented on an annualized basis.
Current report — wording carried from elsewhere
environmental assessment of properties classified as other real estate owned before foreclosure and to re-appraise the properties at least annually until they are sold. We dispose of such properties as quickly and prudently as possible, given current market conditions and the property’s condition.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The following table indicates the amount of custodial deposits by source:
Previous report — wording carried elsewhere
relationships tied to further downgrades in our credit ratings; however, any such downgrades could result in reputational risk that may adversely affect our business.