v3.25.4
Employee Benefits
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Benefits Employee Benefits
Retirement Plan

The Retirement Plan of Flagstar Bank, N.A. (the “Retirement Plan”) covers substantially all employees who had attained minimum age, service, and employment status requirements prior to the date when the plan was frozen. Once frozen, the plan ceased to accrue additional benefits, service, and compensation factors, and became closed to employees who would otherwise have met eligibility requirements.

The following table sets forth certain information regarding the Retirement Plan as of the dates indicated:

December 31,
20252024
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year
$106 $115 
Interest cost5 5 
Actuarial (gain) loss
1 (6)
Annuity payments(6)(7)
Settlements(2)(1)
Projected benefit obligation at end of year
$104 $106 
Change in Plan Assets:
Fair value of assets at beginning of year$246 $253 
Actual return on plan assets
34 — 
Annuity payments(6)(6)
Settlements(2)(1)
Fair value of assets at end of year$272 $246 
Funded status (included in Other assets)
$168 $140 
Changes recognized in other comprehensive income (loss) for the year ended December 31:
Amortization of actuarial loss$(3)$(3)
Net actuarial (gain) loss arising during the year(17)10 
Total recognized in other comprehensive income (loss) for the year (pre-tax)
$(20)$7 
Accumulated other comprehensive loss (pre-tax) not yet recognized in net periodic benefit cost at December 31:
Actuarial loss, net$29 $49 
Total accumulated other comprehensive loss (pre-tax)$29 $49 

The accumulated benefit obligation for the Retirement Plan was $104 million and $106 million as of December 31, 2025 and 2024, respectively.

In 2026 less than one million dollars of unrecognized net actuarial loss related to the Retirement Plan are expected to be amortized from accumulated other comprehensive loss into net periodic benefit cost, compared with $3 million in 2025. The discount rates used to determine the projected benefit obligation at December 31, 2025 and 2024 were 5.16 percent and 5.38 percent, respectively.
The components of net periodic pension expense (income) were as follows for the years indicated:

Years Ended December 31,
202520242023
Components of net periodic pension (income):
Interest cost$5 $5 $5 
Expected return on plan assets(16)(17)(14)
Amortization of net actuarial loss3 3 7 
Net periodic pension (income)
$(8)$(9)$(2)
The following table indicates the weighted average assumptions used in determining the net periodic benefit cost for the years indicated:

Years Ended December 31,
202520242023
Discount rate5.38 %4.73 %4.92 %
Expected rate of return on plan assets6.75 6.75 6.25 

The long-term objective for the Plan is to maintain assets at a level that will sufficiently cover future beneficiary obligations and will achieve long-term growth in assets.

To achieve the Plan's long-term investment objectives, the Trustee will invest the assets of the Plan in a diversified combination of asset classes, investment strategies, and pooled vehicles. The asset allocation guidelines in the table below reflect the plan sponsor’s risk tolerance and long-term objectives for the Plan:

Asset Allocation Parameters by Asset Class
EquityMinimumTargetMaximum
U.S. Large-Cap27%
U.S. Mid/Small-Cap
14%
Non-U.S.14%
Total - Equity45%55%65%
Fixed Income
Long/Intermediate Duration
43%
Money Market/Cash Equivalents
2%
Total - Fixed Income/Cash Equivalents35%45%55%

The parameters for each asset class provide the Trustee with the latitude for managing the Plan within a minimum and maximum range. The Trustee will have full discretion to buy, sell, invest and reinvest in these asset segments based on these guidelines.
The following tables present information about the fair value measurements of the investments held by the Retirement Plan as of December 31, 2025 and as of December 31, 2024:

December 31, 2025
TotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Equity:
  Large-cap value
$14 $14 $— $— 
  Large-cap core
19 19 — — 
  Mid-cap core
18 18 — — 
  Small-cap core
19 19 — — 
  International growth
26 26 — — 
  International value
13 13 — — 
  Large-cap growth
27 27 — — 
Mutual Funds Fixed Income - Intermediate - Core Plus
110 110 — — 
Common Stock
12 12 — — 
Common/Collective Trust-Equity Large cap value
14 — 14 
$272 $258 $14 $— 

December 31, 2024
TotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Equity:
  Large-cap value
$14 $14 $— $— 
  Large-cap core
21 21 — — 
  Mid-cap core
17 17 — — 
  Small-cap core
17 17 — — 
  International growth
18 18 — — 
  International value
12 12 — — 
  Large-cap growth
28 28 — — 
Mutual Funds Fixed Income - Intermediate - Core Plus
96 96 — — 
Common Stock
9 9 — — 
Common/Collective Trust-Equity Large cap value
14 — 14 — 
$246 $232 $14 $— 

Current Asset Allocation
The asset allocations for the Retirement Plan were as follows:

December 31,
20252024
Equity securities60 %61 %
Debt securities40 %39 %
Total100 %100 %

Expected Contributions
We did not make any contributions to the Retirement Plan in the years ended December 31, 2025, 2024, and 2023. We do not expect to contribute to the Retirement Plan in 2026.
Expected Future Annuity Payments
The following annuity payments, which reflect expected future service, as appropriate, are expected to be paid by the Retirement Plan during the years indicated:

2026$9 
20278 
20288 
20298 
20308 
2031 and thereafter41 
Total$82 

Qualified Savings Plan (401(k) Plan)

We maintain a defined contribution qualified savings plan in the form of a 401(k) plan in which all employees are eligible to participate on their date of hire. We match a portion of employee 401(k) plan contributions which totaled $22 million, $28 million, and $21 million for the years ended December 31, 2025 and 2024, and 2023, respectively.