Flagstar Bank Na's latest disclosures for the first quarter of 2026 show that the net charge-off amount for the period includes a special item as high as $34 million.

This fund is directly related to a transaction with a single borrower who previously entered bankruptcy proceedings. The bank pointed out that this write-off reflects a prudent assessment of specific credit risk. Although the borrower had previously filed for bankruptcy protection, the bank still made impairment adjustments to the related assets in accordance with accounting standards. This provision will further optimize the bank's asset quality structure, laying a more solid foundation for future business development.