Flagstar Financial
| Company type | Public |
|---|---|
| Industry | Financial services |
| Founded | April 14, 1859 in Flushing, Queens, New York, United States |
| Headquarters | Hicksville, New York , United States |
Area served | United States |
Key people | Joseph Otting (CEO), Alessandro DiNello (former CEO and executive chairman) |
| Products | Banking, commercial real estate loans, multi-family loans |
| Website | flagstar |
Flagstar Financial, Inc. (FLG) is a regional financial services holding company based in Hicksville, New York. As of 2023, the institution operated 395 branches, all of which were unified under the Flagstar brand by February 21, 2024.
The bank's lending portfolio is dominated by multi-family and commercial real estate loans, with a strong emphasis on properties located in New York City that are subject to rent regulation in New York. Notably, the institution does not provide construction financing.
History
Founded on April 14, 1859, in Flushing, Queens, the bank originally operated as Queens County Savings Bank. It adopted the New York Community Bank name on December 15, 2000, reflecting its expansion beyond the Queens market.
The company entered public markets through an initial public offering in 1993.
During the 2000s, New York Community Bank pursued an aggressive acquisition strategy to fuel growth. Key purchases included Haven Bancorp for $196 million (2000), Richmond County Financial for $802 million (2001), asset manager Peter B. Cannell & Co. (2002), Roslyn Bancorp for $1.6 billion (2003), Long Island Financial for $70 million (2005), Atlantic Bank of New York from the National Bank of Greece for $400 million (2006), 11 branches from Doral Financial Corporation in New York City (2007), Penn Federal Savings Bank for $262 million (2007), and Synergy Bank of Cranford, New Jersey, acquired through a $168 million stock deal (2007). The Synergy branches were rebranded as Garden State Community Bank in 2009.
In December 2009, NYCB broadened its geographic reach beyond the New York metropolitan area by acquiring AmTrust, a failed bank with $13 billion in assets and 66 branches spanning Ohio, Florida, and Arizona. The mortgage division from this acquisition was divested in 2017, generating a profit of $90 million.
Further expansion included the purchase of Desert Hills Bank in Phoenix with $496 million in assets in March 2010 and acquiring Aurora Bank’s assets from Lehman Brothers in June 2012.
A proposed merger valued at $2 billion with Astoria Bank was announced in October 2015 but was called off in December 2016 due to regulatory challenges.
In November 2016, NYCB secured naming rights for Nassau Coliseum, branding it as "NYCB Live," though this agreement ended in August 2020 amid uncertainties surrounding the venue.
Leadership changes occurred in December 2020 when Joseph Ficalora retired and CFO Thomas Cangemi assumed the roles of president and CEO.
In December 2022, NYCB completed its acquisition of Flagstar Bank, significantly enlarging its operational footprint. Subsequently, all branches were rebranded under the Flagstar name as of February 21, 2024.
On March 19, 2023, NYCB acquired $38.4 billion in assets from the liquidated Signature Bank for $2.7 billion and converted 40 former Signature branches into Flagstar locations.
Moody's downgraded NYCB’s credit rating to junk status in February 2024 due to its exposure to commercial real estate following a quarterly loss of $252 million. Alessandro DiNello was appointed executive chairman as well as president and CEO but served only briefly. In March 2024, Joseph Otting was named CEO after NYCB secured a $1 billion capital infusion led by former Treasury Secretary Steven Mnuchin’s investment firm alongside Hudson Bay Capital and Reverence Capital. This fundraising involved issuing shares at $2 each amid a sharp decline after a quarterly loss of $2.4 billion.
On March 11, 2024, NYCB informed shareholders about a one-for-three reverse stock split.
On October 15, 2024, New York Community Bancorp officially rebranded as Flagstar Financial and changed its stock ticker symbol from NYCB to FLG.
See also
External links
- Articles with short description
- Financial institutions founded in 1859 in New York (state)
- New York (state) banking institutions
- Banks founded in 1859
- Hicksville, New York
- Corporations headquartered in Nassau County, New York
- Entities traded on the New York Stock Exchange
- Companies included in the S&P 400
- Banks based in New York (state)