We issue stock-based compensation in the form of RSUs and stock options through the Flagstar Bank, N.A. 2020 Omnibus Incentive Plan. Additionally, we have also granted one-time stock options as employment inducement awards to certain key executives in accordance with Rule 303A.08 of the NYSE. As of June 30, 2026, we have authorized 14,517,164 shares available for grant.

The following table presents total stock-based compensation expense and the related tax benefit for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Stock-based compensation expense	$	19	$	14	$	33	$	29
Tax benefit	4		3		6		5

During the six months ended June 30, 2026, we granted 6,263,522 shares of restricted stock, which vest over a one to three year period, with an average fair value of $12.37 per share on the date of grant.


	Six Months Ended June 30, 2026
	Number of Shares	Weighted Average Grant Date Fair Value
Unvested at beginning of year	7,116,286	$	14.48
Granted	6,263,522	12.37
Vested	(1,777,264)	13.28
Forfeited	(1,170,133)	18.05
Unvested at end of period	10,432,411	12.98

As of June 30, 2026, unrecognized compensation cost relating to unvested restricted stock totaled $111 million. This amount will be recognized over the remaining weighted average life of 2.1 years.

The following table summarizes stock option activity for the period indicated:


	Six months ended June 30, 2026
	Number of Options	Weighted-Average Exercise Price per Share
Unvested at beginning of year	6,083,000	$	8.41
Granted	—	—
Vested	(1,833,000)	7.75
Forfeited	—	—
Unvested at end of period	4,250,000	8.93
Exercisable at end of period	8,083,000

As of June 30, 2026, the remaining amount of unamortized compensation expense relating to stock options totaled $16 million. This amount will be recognized over the remaining weighted average life of 0.9 years.