FLAGSTAR BANK, NATIONAL ASSOCIATION
For the period ended Sep 30, 2026. Filed Nov 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.
Sep 30, 2026 · Filed Nov 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 2026-06-30; filed 2026-08-06.
0000910073-26-000068
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0000910073-26-000084
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 185 previous paragraphs and 177 current paragraphs.
108 unchanged; 62 reworded; 6 added; 14 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 36 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 (6)
Current report
During the three months ended September 30, 2026, NIM increased 4 basis points, and NII increased $20 million compared to the three months ended June 30, 2026. The increase in NII was primarily due to higher yields on our loan portfolio driven in part by the impact of rising interest rates. Additionally, we had continued growth in our C&I portfolio as we diversify our loan portfolio and debt securities as we reinvest capital into higher-yielding assets. These increases were partially offset by the impact of higher interest rates on our interest-bearing liabilities, and growth in commercial deposits.
Current report
For the three months ended September 30, 2026, the provision for credit losses increased $58 million compared to the three months ended June 30, 2026. The provision was impacted by net charge-offs, while the allowance for credit losses was flat compared to the prior quarter. Increases in the allowance were related to growth in our C&I portfolio, and the impact of the higher interest rate environment including on the New York City rent-regulated multi-family portfolio. These increases were offset by volume reductions in our multi-family portfolio.
Current report
Total non-interest expenses for the three months ended September 30, 2026 increased $14 million compared to the three months ended June 30, 2026. The increase was primarily due to an increase in compensation and benefits expense driven by the non-recurrence of a prior quarter reduction to incentive compensation accrual assumptions, and higher professional services expense in support of ongoing business and technology initiatives.
Current report
Income Tax (Benefit) Expense
Current report
(1)Includes $8.5 billion is secured by rent-regulated properties located in New York State, of which $3.0 billion is scheduled to reprice within the next twelve months.
Current report
(3)Includes $455 million of multi-family loans and $834 million of CRE loans with adjustable rates that do not have the option to reprice to a fixed rate.
Removed paragraphs (14)
Previous 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.
Previous 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.
Previous report
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 report
Income Tax Expense (Benefit)
Previous report
In April 2026, Moody’s upgraded our credit ratings. This upgrade reflects the continued improvement in our credit profile.
Previous report
Other Recent Developments
Previous report
On March 19, 2026, the OCC, FRB, and FDIC issued notices of proposed rulemaking that would substantially revise the U.S. regulatory capital framework. The agencies’ proposals would rescind the July 2023 proposed rules to implement the final components of the Basel III framework and replace them with a recalibrated package that is expected to reduce aggregate common equity tier 1 capital requirements across the banking industry.
Previous report
The proposals would replace the existing “advanced approaches” capital rules with a new “expanded risk-based approach.” The expanded risk-based approach could be elected by any banking organization. This would introduce an explicit operational risk requirement calculated based on a firm’s income and expenses, standardized risk-weighting methodologies for credit, equity, and operational risks, and would require firms to reflect most elements of accumulated other comprehensive income in regulatory capital.
Previous report
Additionally, the proposals would revise the risk-based capital treatment of certain exposure categories under the standardized approach, aiming to improve the calibration and risk sensitivity of certain risk weights that are particularly significant to our lending activities. The proposals would require Category III and IV banking organizations to recognize most elements of accumulated other comprehensive income in their regulatory capital with a five-year phase-in period.
Previous report
Finally, the proposals would modify aspects of the GSIB surcharge, which is not applicable to us.
Previous report
We are reviewing the proposals and their potential impact on us.
Previous 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
Previous 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.
Previous 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.
Reworded paragraphs (62)
Previous 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.
Current wording
Flagstar Bank, National Association, is a national banking association headquartered in Hicksville, New York. At September 30, 2026, we had $87.4 billion of assets, $62.1 billion of loans, $67.8 billion of deposits, and total stockholders’ equity of $7.6 billion.
Previous wording
We operate approximately 340 locations across nine states, with strong footholds in the greater New York/New Jersey metropolitan region and in the upper Midwest, along with a significant presence in fast-growing markets in Florida and the West Coast. In addition, the Bank has approximately 20 private bank branches located primarily in the metropolitan New York City region and on the West Coast, which serve the needs of high-net worth individuals and their businesses.
Current wording
We operate approximately 320 locations across nine states, with strong footholds in the greater New York/New Jersey metropolitan region and in the upper Midwest, along with a significant presence in fast-growing markets in Florida and the West Coast. In addition, the Bank has approximately 20 private bank branches located primarily in the metropolitan New York City region and on the West Coast, which serve the needs of high-net worth individuals and their businesses.
Previous 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.
Current wording
For the three months ended September 30, 2026, we reported net income of $12 million compared to net income of $34 million for the three months ended June 30, 2026. The net income attributable to common stockholders for the three months ended September 30, 2026 was $3 million, or $0.01 per diluted share compared to net income attributable to common stockholders of $26 million, or $0.06 per diluted share for the three months ended June 30, 2026.
Previous wording
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 wording
For the nine months ended September 30, 2026, we reported net income of $67 million compared to net loss of $206 million for the nine months ended September 30, 2025. The net income attributable to common stockholders for the nine months ended September 30, 2026 was $42 million, or $0.09 per diluted share compared to net loss attributable to common stockholders of $231 million, or $0.56 per diluted share for the nine months ended September 30, 2025.
Previous 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.
Current wording
During the nine months ended September 30, 2026, NIM increased 33 basis points and NII increased $89 million compared to the nine months ended September 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-yielding assets. These increases were partially offset by lower average loan balances as we continued our strategy of diversifying our loan portfolio.
Previous 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.
Current wording
For the nine months ended September 30, 2026, the provision for credit losses decreased $87 million compared to the nine months ended September 30, 2025. The decrease was primarily due to the strategic reduction in our multi-family and CRE portfolios and lower net charge-offs. The decrease was partially offset by growth in our C&I portfolio.
Previous 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.
Current wording
For the three months ended September 30, 2026, non-interest income decreased $6 million compared to the three months ended June 30, 2026. The decrease was primarily due to the non-recurrence of a $4 million gain related to our investment in Figure Technology Solutions, Inc. (the "Figure Investment") which we sold in the prior quarter.
Previous 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.
Current wording
For the nine months ended September 30, 2026, non-interest income decreased $50 million compared to the nine months ended September 30, 2025. The decrease was primarily due to the non-recurrence of the gain on the Figure Investment, 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, 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.
Previous 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.
Current wording
Total non-interest expense for the nine months ended September 30, 2026 decreased $187 million compared to the nine months ended September 30, 2025. The decrease was primarily due to lower FDIC insurance expense driven by improved assessment factors and a reduced asset base, lower compensation and benefits costs from cost-optimization actions and the non-recurrence of $8 million of severance, the absence of merger-related expenses, and lower general and administrative expenses as a result of the non-recurrence of a $14 million litigation accrual and our continued operating expense discipline. These decreases were partially offset by higher software expenses attributable to ongoing infrastructure development and system enhancements.
Previous wording
The following table summarizes our income tax expense (benefit) and effective tax rate for the respective periods:
Current wording
The following table summarizes our income tax (benefit) expense and effective tax rate for the respective periods:
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 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.
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 nine months ended September 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 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.
Current wording
The income tax expense for the three months ended September 30, 2026 decreased by $36 million compared to the three months ended June 30, 2026 primarily as a result of the settlement of a 2019 - 2021 tax audit that reduced our tax provision by $22 million and lower pre-tax income.
Previous 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.
Current wording
The income tax expense for the nine months ended September 30, 2026 increased by $40 million compared to the nine months ended September 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. The increase was partially offset by the settlement of the prior year tax audit.
Previous 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.
Current wording
Total loans and leases held for investment increased $1.2 billion at September 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.
Previous wording
The following table sets forth loans with adjustable rates ("Option Loans") by year of repricing and fixed rate loans ("Non-Option Loans") by year of contractual maturity:
Current wording
The following table sets forth loans with adjustable rates ("Option Loans") by year of repricing and loans beyond their option date that may be variable or fixed rate loans ("Non-Option Loans") by year of contractual maturity:
Previous 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.
Current wording
(4)Excludes Specialty Finance CRE loans totaling $338 million. Amounts presented reflect unpaid principal balance; total amortized cost adjustments were $159 million.
Previous wording
(3)Excludes $132 million of loans past their contractual maturity date that are in the process of modification or foreclosure.
Current wording
(5)Excludes $119 million of loans past their contractual maturity date that are in the process of modification or foreclosure.
Previous wording
Option loans offer the borrower the ability to reprice to a fixed rate after the initial fixed rate period. If not elected, the loan defaults to a variable rate. Option loans in the table are shown as being due in the period the interest rate is subject to change. Non-Option loans are beyond the option date and are reflected by maturity. Risks associated with loan repricing are discussed in the Credit Risk section.
Current wording
Option loans may offer the borrower the ability to reprice to a fixed rate after the initial fixed rate period. If not elected, the loan defaults to a variable rate. Option loans in the table are shown as being due in the period the interest rate is subject to change. Non-Option loans are beyond the option date and are reflected by maturity. Risks associated with loan repricing are discussed in the Credit Risk section.
Previous 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.
Current wording
Our multi-family loan portfolio decreased $3.0 billion at September 30, 2026 compared to December 31, 2025, primarily due to $2.6 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 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.
Current wording
The majority of our multi-family loan portfolio consists of non-recourse loans secured by rental apartment buildings. As of September 30, 2026 and December 31, 2025, $14.0 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, $12.3 billion or 88 percent and $13.9 billion or 88 percent were subject to rent regulation laws to varying degrees at September 30, 2026 and December 31, 2025, respectively. Additionally, $8.5 billion and $9.5 billion of these loans, as of September 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 $5.3 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.
Current wording
Our multi-family loan portfolio had $5.3 billion outstanding with interest-only payments at September 30, 2026. Of this, $4.6 billion consisted of term loans that may have contained an initial interest-only period but were underwritten on a fully amortizing basis, including calculation of the DSCR, with qualification based on the borrower's credit profile, particularly the property's loan-to-value. For these loans, the weighted average interest-only period remaining was 24.7 months as of September 30, 2026, with approximately 9 percent entering their amortization period by the end of 2026. The remaining $0.7 billion relates to loans originated in 2026 secured by non rent-regulated multi-family collateral that were originated on a full interest-only basis. The weighted average interest-only period remaining for these loans was 19.2 months as of September 30, 2026.
Previous wording
We continue to monitor our loans held for investment portfolio and the related ACL, particularly, given the economic pressures facing the commercial real estate and multi-family markets. Although occupancy levels have historically tended to be stable due to below market rents, rent-regulated loans that are repricing are incurring debt service levels that, when combined with inflationary pressure on operating costs and limits on the ability to increase rental rates, approach or exceed some properties’ net operating income and may require the borrower to support the loan from sources unrelated to the collateral until elevated interest rates subside and/or over time as rents are able to be increased.
Current wording
We continue to monitor our loans held for investment portfolio and the related ACL particularly given the economic pressures facing the commercial real estate and multi-family markets. Although occupancy levels have historically tended to be stable due to below market rents, the rising interest rate environment has increased borrowing costs such that rent-regulated loans that are repricing are incurring debt service levels that, when combined with inflationary pressure on operating costs and limits on the ability to increase rental rates, approach or exceed some properties’ net operating income and may require the borrower to support the loan from sources unrelated to the collateral until elevated interest rates subside and/or over time as rents are able to be increased.
Previous wording
The following table presents a geographical analysis of the multi-family loans in our held for investment loan portfolio:
Current wording
The following table presents a geographical stratification of the multi-family loans in our held for investment loan portfolio:
Previous 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.
Current wording
At September 30, 2026, CRE loans decreased $1.2 billion compared to December 31, 2025, primarily due to par payoffs, and paydowns, partially offset by originations since December 31, 2025.
Previous wording
The following table presents a geographical analysis of the CRE loans in our held for investment loan portfolio:
Current wording
The following table presents a geographical stratification of the CRE loans in our held for investment loan portfolio:
Previous 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.
Current wording
Our C&I loan portfolio increased $5.4 billion at September 30, 2026 compared to December 31, 2025, primarily due to $7.7 billion of new originations driven by $11.5 billion of new and increased loan commitments during the nine months ended September 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 $137 million at June 30, 2026 compared to December 31, 2025, primarily driven by new originations.
Current wording
One-to-four family loans increased $237 million at September 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 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.
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 September 30, 2026, excluding LGG, loans in this portfolio had an average current FICO score of 743 and an average loan-to-value ratio of 51 percent.
Previous wording
At June 30, 2026, other loans decreased $106 million compared to December 31, 2025, primarily driven by payoffs at par.
Current wording
At September 30, 2026, other loans decreased $139 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 June 30, 2026, loans in this portfolio had an average current FICO score of 759.
Current wording
Other loans primarily consist of HELOANs, second mortgage loans, and HELOCs. As of September 30, 2026, loans in this portfolio had an average current FICO score of 760.
Previous 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.
Current wording
Loans held for sale at September 30, 2026 decreased $99 million compared to December 31, 2025, primarily due to the completion of loan sales during the nine months ended September 30, 2026.
Previous 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.
Current wording
The ACL on loans and leases as of September 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. The decrease was partially offset by the growth of our C&I portfolio.
Previous wording
The following table presents our non-accrual loans held for investment by loan type as of:
Current wording
The following table presents our non-accrual loans held for investment by loan type:
Previous wording
(1)Excludes $5 million and $30 million of non-accrual held for sale loans at June 30, 2026 and December 31, 2025, respectively.
Current wording
(1)Excludes $4 million and $30 million of non-accrual held for sale loans at September 30, 2026 and December 31, 2025, respectively.
Previous wording
The following table sets forth the changes in non-accrual loans for the six months ended June 30, 2026:
Current wording
The following table sets forth the changes in non-accrual loans for the nine months ended September 30, 2026:
Previous 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.
Current wording
During the nine months ended September 30, 2026 non-accrual loans decreased $158 million primarily due to the resolution of a single borrower relationship undergoing bankruptcy proceedings. Approximately 42 percent of our non-accrual loans are current on their contractual payment terms.
Previous 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.
Current wording
As of September 30, 2026, we had $107 million of loans 90 days or more past due that were still accruing interest compared to none as of December 31, 2025. Based on our evaluation of these loans and ongoing engagement with the borrowers, we have determined that they should remain on accrual status. As of October 27, 2026, $44 million of these loans had been resolved.
Previous wording
The following table summarizes net charge-offs as a percentage of average loans:
Current wording
The following table summarizes net charge-offs as a percentage of average loans held for investment, excluding LGG:
Previous wording
(1)Six months ended presented on an annualized basis.
Current wording
(1)Nine months ended presented on an annualized basis.
Previous 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.
Current wording
At September 30, 2026, debt securities available-for-sale increased $694 million compared to December 31, 2025. The increase was primarily due to our decision to reinvest capital into higher-yielding securities, partially offset by a decline in the fair value of the securities reflecting the impact of higher interest rates. At September 30, 2026, 20 percent of our portfolio is comprised of floating rate securities.
Showing the first 40 of 62 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The primary mortgage loan agencies maintain standards for institutions serving as eligible custodial depositories, including the requirement to maintain an investment grade short‑term issuer/deposit rating from Moody’s or S&P. Following
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
the market value of our interest-earning assets. Accordingly, the Board and management monitor interest rate risk on a regular basis so that changes to the balance sheet may be made when deemed appropriate.