FLAGSTAR FINANCIAL, INC. REPORTS FIRST QUARTER 2025 GAAP NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS OF $0.26 PER DILUTED SHARE AND NON-GAAP ADJUSTED NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS OF $0.23 PER DILUTED SHARE

Core Viewpoint - Flagstar Financial, Inc. reported a net loss of $100 million for Q1 2025, an improvement from previous quarters, indicating progress towards profitability and strategic transformation into a top-performing regional bank [1][2][6]. Asset Quality - Total allowance for credit losses (ACL) was$1,215 million, representing 1.82% of total loans held for investment (HFI), a slight decrease from 1.83% in the previous quarter [1][43]. - Criticized loans declined by $885 million or 6$3,280 million, up 25% from the previous quarter [37]. Loans, Deposits, and Funding - Total loans and leases held for investment decreased by $1.7 billion or 2$66.6 billion [8]. - Multi-family loans decreased by $656 million or 2$33.4 billion, while commercial real estate (CRE) loans decreased by $326 million or 3$11.5 billion [8]. - Total deposits were $73.9 billion, a decrease of$2.0 billion or 3% linked-quarter [13]. Capital - The Common Equity Tier 1 (CET1) capital ratio improved to 11.9%, exceeding peer group levels [1][45]. - Book value per common share was $18.43, and tangible book value per share was$17.33 [1]. Liquidity - The company maintained ample liquidity of $30 billion, representing 231$18.1 billion, supported by high-quality liquid assets [1]. Earnings Summary - Net interest income for Q1 2025 was $410 million, down 11$80 million, a significant decrease from $164 million in the previous quarter [29]. - Total revenues decreased by 22$490 million compared to the previous quarter [28]. Non-Interest Expense - Non-interest expense totaled $532 million, down 26$485 million, reflecting a 13% decrease linked-quarter [34]. Credit Quality - Net charge-offs for Q1 2025 totaled $115 million, down 48$66 million compared to the previous quarter, attributed to lower net charge-offs [26]. Strategic Focus - The company aims to improve its earnings profile, manage commercial real estate exposure, and enhance credit quality [3][6]. - The addition of 15 bankers to the commercial lending team reflects ongoing efforts to strengthen the business [4].