Flagstar Financial

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Flagstar Financial, Inc.
FormerlyQueens County Savings Bank (1859–2000)
New York Community Bank (2000–2023)
Company type Public company
NYSE:  FLG
S&P 400 component
Industry Commercial bank
FoundedApril 14, 1859;165 years ago (1859-04-14)
Headquarters Hicksville, New York, U.S.
Number of locations
420 branches
Key people
 Joseph Otting (CEO),
Sandro DiNello (Chairman)
ProductsMulti-family loans
Commercial real estate loans
RevenueIncrease2.svg US$5.491 billion (2023 [1] )
Increase2.svg US$2.406 billion (2023) [1]
Increase2.svg US$2.374 billion (2023 [1] )
Total assets Increase2.svg $116.322 billion (2023 [1] )
Total equity Decrease2.svg $10.820 billion (2023 [1] )
Number of employees
7,497 (2022 [2] )
Subsidiaries Flagstar Bank
Capital ratio 11.36% Common equity tier 1 capital (2017)
Website https://ir.flagstar.com
New York Community footprint in the New York metropolitan area (upper-left), southern Florida (upper-right), Ohio (lower-left), and Arizona (lower-right) New York Community Bank footprint 2010-05.png
New York Community footprint in the New York metropolitan area (upper-left), southern Florida (upper-right), Ohio (lower-left), and Arizona (lower-right)

Flagstar Financial, Inc. (FLG), is a bank holding company for Flagstar Bank headquartered in Hicksville, New York. In 2023, the bank operated 395 branches in New York, Michigan, New Jersey, Ohio, Florida, Arizona and Wisconsin. [3] Branches used to be operated under the names Queens County Savings Bank, Roslyn Savings Bank, Richmond County Savings Bank, Roosevelt Savings Bank, and Atlantic Bank in New York; Garden State Community Bank in New Jersey; Ohio Savings Bank in Ohio; and AmTrust Bank in Arizona and Florida. [3] However, they rebranded all of these under the Flagstar name on February 21, 2024. [4] [5] FLG is on the list of largest banks in the United States and is one of the largest lenders in the New York City metro area.

Contents

A large majority of the loans originated by the bank are either multi-family or commercial loans, many in New York City, to buildings subject to laws regarding rent regulation in New York. However, it does not offer construction loans. [6]

History

NYCB was founded on April 14, 1859, in Flushing, Queens, as Queens County Savings Bank, [3] and changed its name on December 15, 2000, to New York Community Bank to better reflect its market area beyond Queens.

In 1993, the company became a public company via an initial public offering. [3]

NYCB underwent multiple acquisitions in the 2000s, acquiring Haven Bancorp for $196 million in 2000, [7] Richmond County Financial in an $802 million transaction in 2001, [8] asset manager Peter B. Cannell & Co. in 2002, [9] Roslyn Bancorp in a $1.6 billion transaction in 2003, [10] Long Island Financial in a $70 million transaction in 2005, [11] Atlantic Bank of New York from the National Bank of Greece for $400 million in 2006, [12] 11 branches in New York City from Doral Financial Corporation in March 2007, [13] Penn Federal Savings Bank for $262 million in April 2007 (adding branches in East Central and North East New Jersey), [14] and Synergy Bank of Cranford, New Jersey, for $168 million in stock in October 2007. In September 2009, NYCB re-branded the Synergy branches to Garden State Community Bank. [15]

In December 2009, the Federal Deposit Insurance Corporation seized AmTrust, a bank headquartered in Cleveland, OH with 66 branches and $13 billion in assets in Ohio, Florida and Arizona. [16] NYCB acquired Amtrust, which expanded NYCB's branch footprint outside of the New York metropolitan area for the first time. [17] In 2017, the bank sold the mortgage business acquired from the purchase of AmTrust at a $90 million profit. [18]

In March 2010, Desert Hills Bank of Phoenix, Arizona, with $496 million in assets, was seized by the FDIC and acquired by NYCB. [19] [20]

In June 2012, NYCB acquired the assets of Aurora Bank from Lehman Brothers. [21]

On October 29, 2015, the bank announced an agreement to merge with Astoria Bank, but the proposed merger was terminated in December 2016 after failing to win regulatory approval. [22] [23]

On November 4, 2016, Brooklyn Sports & Entertainment announced that the bank had acquired the naming rights to Nassau Coliseum; it was renamed "NYCB Live: Home of the Nassau Veterans Memorial Coliseum", due to agreements requiring that "Nassau Veterans Memorial Coliseum" remain in the arena's name. [24] NYCB pulled out of its naming rights contract in late August 2020 due to uncertainty surrounding the property after a June 2020 closure and subsequent new leaseholder. [24]

In December 2020, President, CEO and Board member Joseph Ficalora announced his retirement. Thomas Cangemi, the company's Chief Financial Officer since 2005, became president and CEO. [25]

In December 2022, the bank acquired Flagstar Bank. [26] [27]

On March 19, 2023, NYCB acquired $38.4 billion in assets from the liquidated Signature Bank in a $2.7 billion deal, with 40 Signature branches being converted to Flagstar locations. [28]

On February 6, 2024, the bond credit rating provider Moody's Investors Service downgraded NYCB's credit rating to junk status, attributed to its exposure in commercial real estate lending. [29] NYCB had reported a quarterly loss of $252 million one week prior. [30]

As a result of their acquisition of Flagstar bank in 2022 the company rebranded all of their branches to Flagstar on February 21, 2024. [4] [5]

In February 2024, Alessandro DiNello, its executive chairman, was appointed president and CEO. [31] His tenure was brief. In March 2024 Joseph Otting was appointed a new CEO after NYCB secured $1 billion equity injection from the investment firm run by former Treasury Secretary Steven Mnuchin, Hudson Bay Capital and Reverence Capital, at 2$ a share [32] NYCB stock had previously plummeted in late February after the bank announced a $2.4 billion December quarter earnings hit. [33]

On March 11, 2024 NYCB announced the plans to submit one-for-three reverse stock split of its common stock to shareholders. [34]

On October 15, 2024, New York Community Bancorp officially rebranded to Flagstar Financial, and changed its stock ticker from NYCB to FLG. [35] [36]

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References

  1. 1 2 3 4 5 "Current report filing" (PDF). ir.mynycb.com. January 31, 2023. Retrieved January 6, 2024.
  2. ↑ "New York Community Bancorp, Inc. 2022 Form 10-K Annual Report" (PDF). U.S. Securities and Exchange Commission.
  3. 1 2 3 4 "New York Community Bancorp, Inc. 2022 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  4. 1 2 "Roslyn Savings Bank name replaced after 149 years with the Flagstar Bank brand". Newsday . February 22, 2024. Retrieved March 7, 2024.
  5. 1 2 "New York Community Bancorp, Inc. - NEW YORK COMMUNITY BANK AND FLAGSTAR BANK COMPLETE THE OPERATIONAL CONVERSION OF SYSTEMS AND RETAIL BRANCH NETWORK; UNVEILS NEW NATIONAL BRANDING ACROSS ALL BRANCHES" . Retrieved March 7, 2024.
  6. ↑ Putzier, Konrad (November 1, 2015). "Ranking New York's biggest real estate lender" . The Real Deal .
  7. ↑ "Metro Business: Haven Bancorp Acquired". The New York Times . Bloomberg L.P. June 29, 2000.
  8. ↑ "New York Community Bancorp, Inc. and Richmond County Financial Corp. Announce Merger-of-Equals in an $802 Million Transaction Expected to Generate 2002 Cash Earnings Accretion of 16%" (Press release). U.S. Securities and Exchange Commission. March 27, 2001.
  9. ↑ Solnik, Claude (December 28, 2001). "NYCB acquires balance of Peter B. Cannell & Co". Long Island Business News .
  10. ↑ "New York Community Bancorp, Inc. Completes Strategic Merger with Roslyn Bancorp, Inc" (Press release). New York Community Bancorp. November 3, 2003.
  11. ↑ "NEW YORK COMMUNITY BANCORP, INC. TO ACQUIRE LONG ISLAND FINANCIAL CORP" (Press release). U.S. Securities and Exchange Commission. August 1, 2005.
  12. ↑ Diamataris, Antonis (October 14, 2005). "Ntl. Bank of Greece Sells Atlantic Bank to New York Bank for $400M in Cash". The National Herald .
  13. ↑ "New York Community Bancorp, Inc. Announces the Acquisition of 11 New York City Branches of Doral Bank, FSB by New York Commercial Bank" (Press release). Business Wire. March 15, 2007.
  14. ↑ "New York Community Bancorp, Inc. Completes the Acquisition of PennFed Financial Services, Inc" (Press release). Business Wire. April 2, 2007.
  15. ↑ "New York Community bank buys Synergy for $168 mln". Reuters . May 14, 2007.
  16. ↑ "FDIC Failed Bank Information: Information for AmTrust Bank, Cleveland, OH". Federal Deposit Insurance Corporation.
  17. ↑ Murray, Teresa Dixon (December 4, 2009). "AmTrust Bank fails, bought by New York bank". Cleveland Plain Dealer .
  18. ↑ "New York Community Bancorp, Inc. Announces Strategic Sale of Mortgage Banking Business and Residential Assets Covered under FDIC Loss Share Agreement" (Press release). Business Wire. June 27, 2017.
  19. ↑ "FDIC Failed Bank Information: Information for Desert Hills Bank, Phoenix, AZ". Federal Deposit Insurance Corporation.
  20. ↑ Casacchia, Chris (March 27, 2010). "Desert Hills Bank latest to be shut down by FDIC". American City Business Journals .
  21. ↑ "Lehman Brothers Holdings Announces Completion of the Sale of Substantially All Aurora Bank Assets and Insured Deposits" (Press release). Business Wire. June 29, 2012.
  22. ↑ Orol, Ronald (December 20, 2016). "N.Y. Community Bank Scraps $2 Billion Astoria Deal as Fed Review Lingers". TheStreet.com .
  23. ↑ "New York Community Bancorp, Inc. and Astoria Financial Corporation Announce the Termination of Their Definitive Merger Agreement Effective January 1, 2017" (Press release). Business Wire. December 20, 2016.
  24. 1 2 Baumbach, Jim; Ferrette, Candice (August 27, 2020). "The name NYCB Live's Nassau Coliseum is no more". Newsday . Retrieved October 14, 2020.
  25. ↑ "New York Community Bancorp, Inc. Announces Leadership Transition Plan" (Press release). PR Newswire. December 28, 2020.
  26. ↑ "NEW YORK COMMUNITY BANCORP, INC. COMPLETES ACQUISITION OF FLAGSTAR BANCORP, INC" (Press release). PR Newswire. December 1, 2022.
  27. ↑ Winzelberg, David (December 7, 2022). "NYCB completes acquisition of Flagstar Bancorp". Long Island Business News .
  28. ↑ "New York Community Bank to buy failed Signature Bank". NBC News . March 19, 2023.
  29. ↑ Egan, Matt (2024-02-07). "New York Community Bancorp's credit rating downgraded to junk on real estate concerns". CNN. Retrieved 2024-02-07.
  30. ↑ Buchwald, Elisabeth (2024-01-31). "Regional banks are back in focus after NY Community Bancorp stock drops 38% in one day". CNN. Retrieved 2024-02-07.
  31. ↑ Pound, Jesse (2024-02-29). "Shares of NYCB fall more than 20% after bank discloses 'internal controls' issue, CEO change". CNBC. Retrieved 2024-03-01.
  32. ↑ Saini, Manya (7 March 2024). "NYCB eyes potential loan book sales, deposits shrink 7%". Reuters. Joseph Otting, former Comptroller of the Currency in the Trump administration, was named NYCB's CEO on Wednesday as part of a $1 billion capital injection from a group of investors that included former Treasury Secretary Steven Mnuchin. [...] "While this deal provides a much-needed lifeline to NYCB, it is tremendously dilutive to common shareholders," analysts at Wedbush said. In exchange for their capital, NYCB's investors bought common shares at $2 each, along with preferred stock.
  33. ↑ Alpert, Bill (29 February 2024). "NYCB Stock Sinks After Finding 'Material Weaknesses' in Its Loan Review Process". Barron's. Retrieved 7 March 2024.
  34. ↑ "NYCB closes $1 bln capital infusion deal, announces reverse stock split". Reuters. Retrieved 12 March 2024.
  35. ↑ "Flagstar, formerly NYCB, reports a wider-than-expected loss as charge-offs jump". Morningstar, Inc. 2024-10-25. Retrieved 2024-12-12.
  36. ↑ Shekhawat, Jaiveer Singh (October 15, 2024). "NYCB to be renamed Flagstar Financial as turnaround gathers pace". Reuters . Retrieved 2024-12-11.
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