Flagstar Bank

First Security Savings Bank was founded as a federal savings bank in 1987. The chairman of the bank was Thomas J. Hammond. The initial branch focused on funding regional retail and wholesale mortgage operations. A bank holding company, FSSB Holding Corporation was established in 1993. The following year, the company acquired Security Savings Bank, based in Jackson, Michigan. Two years later in 1996, the company adopted its current name, Flagstar Bank.{{cite web| url=http://www.troyhistoricvillage.org/feb-11-2015-flagstar-bank-troy-home-largest-bank-headquartered-michigan/| title=Flagstar Bank: Troy Home To Largest bank Headquartered in Michigan| date=February 10, 2015| website=Troy Historic Village}}

In 1997, the company became a public company via an initial public offering.{{cite web| url=http://www.nasdaq.com/markets/ipos/filing.ashx?filingid=408086| title=Flagstar Bancorp, Inc.| website=NASDAQ}} It moved its stock listing from the NASDAQ to the New York Stock Exchange in 2001.

During the 2008 financial crisis, the company raised $1.6 billion in new capital with investments from MP Thrift Investments L.P., the Troubled Asset Relief Program (TARP), and public offerings.{{cite news| url=https://www.crainsdetroit.com/article/20110227/SUB01/302279966/more-biz-lending-for-flagstar-president-for-local-region-hired| title=More biz lending for Flagstar: President for local region hired| date=February 27, 2011| first=Tom| last=Henderson| newspaper=Crain's Detroit Business | url-access=subscription}} The bank repaid all of the funds it received under TARP in August 2016.{{cite press release |url=https://www.prnewswire.com/news-releases/flagstar-completes-repayment-of-tarp-funds-300306487.html |title=Flagstar completes repayment of TARP funds |publisher=Flagstar Bank |via=PR Newswire |date=August 1, 2016}}

Flagstar effected 1:10 reverse stock splits in 2010 and 2012 to maintain its New York Stock Exchange listing.{{cite news |url=https://www.crainsdetroit.com/article/20140209/NEWS/302099980/a-flagstar-is-reborn-retrenched-bank-putting-legacy-issues-behind |title=Retrenched bank putting legacy issues behind |first=Tom |last=Henderson |newspaper=Crain's Detroit Business |date=February 10, 2014 |url-access=subscription}} The U.S. Department of Treasury sold its preferred stock of Flagstar to private investors in 2013.{{cite news |url=https://www.americanbanker.com/news/treasury-to-auction-stakes-in-flagstar-six-other-banks |title=Treasury to Auction Stakes in Flagstar, Six Other Banks |first=Chris |last=Cumming |work=American Banker |date=March 11, 2013 |url-access=subscription}}

In May 2013, Flagstar paid a $110 million settlement to MBIA.{{cite news |url=https://www.crainsdetroit.com/article/20130505/NEWS/305059970/flagstar-bank-agrees-to-pay-110-million-to-settle-lawsuit |title=Flagstar Bank agrees to pay $110 million to settle lawsuit |first=Tom |last=Henderson |newspaper=Crain's Detroit Business |date=May 6, 2013}}{{cite news |url=https://www.crainsdetroit.com/article/20130211/NEWS/130219985/judgment-puts-flagstar-earnings-in-the-red |title=Judgement puts Flagstar earnings in the red |first=Tom |last=Henderson |newspaper=Crain's Detroit Business |date=February 11, 2013}} In June 2013, Flagstar reached a $105 million settlement with Assured Guaranty related to its RMBS.{{cite news |url=https://www.americanbanker.com/news/flagstar-settles-rmbs-lawsuit-for-105-million |title=Flagstar Settles RMBS Lawsuit for $105 Million |first=Brian |last=Browdie |magazine=American Banker |date=June 24, 2013 |url-access=subscription}}{{cite news |url=https://www.reuters.com/article/flagstar-assured/flagstar-bancorp-to-pay-assured-guaranty-105-mln-settlement-idUSL2N0EX1PN20130621 |title=Flagstar Bancorp to pay Assured Guaranty $105 mln settlement |last=Raymond |first=Nate |work=Reuters |date=June 21, 2013}}{{cite news |url=https://www.law360.com/articles/452351/flagstar-to-pay-105m-to-end-assured-s-mbs-suit |title=Flagstar To Pay $105M To End Assured's MBS Suit |work=Law360 |date=June 21, 2013 |url-access=subscription}} Flagstar paid a $93.5 million settlement to Fannie Mae in November 2011,{{cite news |url=https://www.americanbanker.com/news/flagstar-settles-fannie-mae-claims-for-94-million |title=Flagstar Settles Fannie Mae Claims for $94 Million |first=Sarah |last=Todd |magazine=American Banker |date=November 7, 2013}}{{cite news |url=https://www.crainsdetroit.com/article/20131107/NEWS/131109874/flagstar-oks-121-5-million-settlement-with-fannie-mae-for-defaulted |title=Flagstar OKs $121.5 million settlement with Fannie Mae for defaulted loans |first=Tom |last=Henderson |newspaper=Crain's Detroit Business |date=November 7, 2013 |url-access=subscription}} and $8.9 million to Freddie Mac regarding its RMBS mortgage repurchase obligations in December 2013.{{cite press release |url=https://www.prnewswire.com/news-releases/flagstar-reaches-settlement-with-freddie-mac-over-mortgage-repurchase-obligations-237951661.html |title=Flagstar Reaches Settlement with Freddie Mac over Mortgage Repurchase Obligations |publisher=Flagstar Bank |via=PR Newswire |date=December 30, 2013}}{{cite news |url=https://www.crainsdetroit.com/article/20131230/NEWS/131239988/flagstar-to-pay-freddie-mac-8-9m-for-mortgage-repurchase |title=Flagstar to pay Freddie Mac $8.9 million for mortgage repurchase obligations |newspaper=Crain's Detroit Business |date=December 30, 2013 |url-access=subscription}}{{cite news |url=https://www.americanbanker.com/news/flagstar-to-pay-freddie-mac-89-million |title=Flagstar to Pay Freddie Mac $8.9 Million |first=Sarah |last=Todd |magazine=American Banker |date=December 30, 2013 |url-access=subscription}} In September 2014, Flagstar agreed to pay $37.5 million to the Consumer Financial Protection Bureau.{{cite press release |url=https://www.consumerfinance.gov/about-us/newsroom/cfpb-takes-action-against-flagstar-bank-for-violating-new-mortgage-servicing-rules/ |title=CFPB Takes Action Against Flagstar Bank for Violating New Mortgage Servicing Rules |publisher=Consumer Financial Protection Bureau |date=September 29, 2014}}{{cite news |url=https://dealbook.nytimes.com/2014/09/29/consumer-agency-penalizes-flagstar-bank-over-mortgage-servicing/ |title=Consumer Agency Penalizes Flagstar Bank Over Mortgage Servicing |first=Jessica |last=Silver-Greenberg |newspaper=The New York Times |date=September 29, 2014 |url-access=subscription}}

In 2013, the company sold a $1.3 billion commercial loan portfolio to CIT Group.{{cite news |url=https://www.bizjournals.com/boston/news/2013/01/03/flagstar-to-sell-13b-in-commercial.html |title=Flagstar to sell $1.3B commercial loan portfolio to CIT Group |first=Matthew L. |last=Brown |newspaper=Boston Business Journal |date=January 3, 2013}} Flagstar Bank was the jersey sponsor of the Detroit Pistons of the National Basketball Association for the 2017–18 NBA season.{{cite press release |url=https://www.nba.com/pistons/news/detroit-pistons-and-flagstar-bank-announce-historic-jersey-partnership |title=Detroit Pistons and Flagstar Bank Announce Historic Jersey Partnership |publisher=National Basketball Association |date=July 26, 2017}}

In 2018, the bank acquired 8 branches in San Bernardino County, California from Desert Community Bank.{{cite press release |url=https://www.prnewswire.com/news-releases/flagstar-closes-on-acquisition-of-desert-community-bank-branches-from-east-west-bank-300615699.html |title=Flagstar Closes on Acquisition of Desert Community Bank Branches from East West Bank |publisher=Flagstar Bank |via=PR Newswire |date=March 19, 2018}} The company also acquired a mortgage warehouse loan portfolio from Santander Bank.{{cite press release |url=https://www.prnewswire.com/news-releases/flagstar-closes-on-acquisition-of-mortgage-warehouse-portfolio-from-santander-bank-300612477.html |title=Flagstar Closes on Acquisition of Mortgage Warehouse Portfolio from Santander Bank |publisher=PR Newswire | date=March 12, 2018}} During that same year, Flagstar also acquired 52 Wells Fargo branches in Indiana, Michigan, and Ohio, as well as four in Wisconsin.{{cite press release |url=https://www.prnewswire.com/news-releases/flagstar-closes-on-acquisition-of-52-midwest-branches-from-wells-fargo-bank-300758724.html |title=Flagstar Closes on Acquisition of 52 Midwest Branches from Wells Fargo Bank |publisher=Flagstar Bank |via=PR Newswire |date=August 1, 2016}} However, numerous issues plagued Flagstar during the transfer, several of which were caused by its main website experiencing technical glitches.{{cite news |url=https://www.bankrate.com/banking/flagstar-customers-experience-issues-with-switch-from-wells-fargo/ |title=Flagstar customers angry after issues with switch from Wells Fargo |work=Bankrate |last=Smith |first=Kelly Anne |date=December 3, 2018}} Flagstar waived fees, added staff and published an email address where customers could send concerns to alleviate issues.{{cite news |url=https://www.bankrate.com/banking/flagstar-wells-fargo-account-failure/ |title=Flagstar details Wells Fargo account transition snafu, will add staff, waive fees |work=Bankrate |last=Smith |first=Kelly Anne |date=December 5, 2018}} The bank stated that most issues had been resolved by the end of the week.{{cite news |url=https://www.wane.com/news/local-news/flagstar-customers-find-issues-in-switch-from-wells-fargo/1636678138 |title=Flagstar Bank says last weekend's problems fixed |work=WANE News |date=December 4, 2018}}

In 2019, the company initiated a dividend.{{cite press release |url=https://www.prnewswire.com/news-releases/flagstar-initiates-dividend-and-50-million-share-repurchase-300786997.html |title=Flagstar Initiates Dividend and $50 Million Share Repurchase |publisher=Flagstar Bank |via=PR Newswire |date=January 30, 2019}}

On April 26, 2021, New York Community Bancorp, Inc. (NYCB) announced the acquisition of Flagstar in an all stock strategic merger.{{cite press release |title=New York Community Bancorp, Inc. To Acquire Flagstar Bancorp, Inc. In An All Stock Strategic Merger |url=https://ir.mynycb.com/news-and-events/news-releases/press-releahttps://en.wikipedia.org/w/index.php?title=Flagstar_Bank&action=editse-details/2021/New-York-Community-Bancorp-Inc.-To-Acquire-Flagstar-Bancorp-Inc.-In-An-All-Stock-Strategic-Merger/default.aspx |access-date=2024-10-23 |publisher=New York Community Bancorp |language=en-US}} The acquisition was completed on December 1, 2022.{{cite press release |title=New York Community Bancorp, Inc. completes acquisition of Flagstar Bancorp, Inc. |language=en-US |publisher=New York Community Bancorp |via=PR Newswire |url=https://www.prnewswire.com/news-releases/new-york-community-bancorp-inc-completes-acquisition-of-flagstar-bancorp-inc-301690919.html/ |access-date=2022-12-26}}

In March 2023, New York Community Bancorp's Flagstar Bank took on nearly all of Signature Bank's deposits. Signature Bank was closed by regulators on March 12, 2023. Signature Bank's closure became the third largest bank failure in U.S. history. The agreement did not include about $4 billion linked to Signature's crypto business, which the FDIC said it intended to deal with directly. The 40 former branches of Signature Bank operated under Flagstar Bank as of Monday, March 20, 2023. "Depositors of Signature Bridge Bank, N.A., other than depositors related to the digital banking business, will automatically become depositors of the assuming institution," the FDIC said in a statement. The FDIC said Flagstar would also buy some of Signature's loan portfolios.{{cite news |url=https://www.wsj.com/livecoverage/stock-market-news-today-03-20-2023 |title=Flagstar Bank to Assume Signature Bridge Bank Deposits, FDIC Says |newspaper=The Wall Street Journal |date=March 19, 2023 |url-access=subscription}}

In October 2024, New York Community Bancorp officially renamed itself Flagstar Financial and consolidated all brands under the Flagstar name, and changed their ticker symbol to FLG.{{Cite web |date=2025-02-03 |title=From Walking Wounded to Punchy Player: Inside the Turnaround at Flagstar |url=https://thefinancialbrand.com/news/banking-trends-strategies/flagstar-bank-continues-cleanup-while-revamping-for-growth-186349 |access-date=2025-06-15 |website=The Financial Brand |language=en}}

In 2016, Flagstar Bank announced plans for a $10 million, 5-year economic development program for Pontiac, Michigan. The initiative is aimed at helping revitalize the Oakland County city. The program includes $5 million for home mortgages including a customized home loan product for Pontiac residents, $2.5 million for small businesses and start-ups, $1.5 million for the previously announced naming rights of the Flagstar Strand Theatre for the Performing Arts along with an investment of $1 million for financial literacy in the community.{{cite news |url=https://www.crainsdetroit.com/article/20160919/NEWS/160919712/flagstar-plans-10-million-economic-development-program-for-pontiac |title=Flagstar plans $10 economic development program for Pontiac |first=Tom |last=Henderson |newspaper=Crain's Detroit Business |date=September 20, 2016 |url-access=subscription}}

Thomas J. Hammond, founder of Flagstar, served as chairman of Flagstar Bank and Flagstar Bancorp. Mark Hammond became president of the bank in 1995 and CEO in 2002.

In 2009, former CEO of Sovereign Bancorp Joseph P. Campanelli was named chairman, president, and CEO of Flagstar Bank and Flagstar Bancorp.{{cite news |url=https://www.theoaklandpress.com/news/head-of-flagstar-steps-down/article_2b93109c-0e66-586b-a581-0af52bc46c72.html |title=Head of Flagstar steps down |first=Joseph |last=Szczesny |newspaper=The Oakland Press |date=October 24, 2009}}{{cite news |url=https://www.theoaklandpress.com/news/flagstar-names-new-ceo/article_84502de0-0fb2-5058-b7d8-c02a5e308bfe.html |title=Flagstar names new CEO |first=Joseph |last=Szczesny |newspaper=The Oakland Press |date=October 3, 2009}}

In 2012, Michael J. Tierney, previously executive vice president and managing director of personal financial services at Flagstar, became president and CEO of the organizations.{{cite news |url=https://www.crainsdetroit.com/article/20121002/FREE/121009979/flagstar-exec-tierney-succeeds-campanelli-as-president-ceo |title=Flagstar exec Tierney succeeds Campanelli as president, CEO |first=Tom |last=Henderson |newspaper=Crain's Detroit Business |date=October 2, 2012 |url-access=subscription}} John D. Lewis, former vice chairman and director of Comerica, was named chairman.{{cite press release |url=https://www.prnewswire.com/news-releases/flagstar-appoints-michael-j-tierney-as-president-172197901.html |title=Flagstar Appoints Michael J. Tierney as President |publisher=Flagstar Bank |via=PR Newswire |date=October 1, 2012}} Alessandro P. DiNello became president, CEO and director of the organizations in 2013.{{cite news |url=https://www.crainsdetroit.com/article/20130517/NEWS/130519874/dinello-appointed-ceo-at-flagstar |title=DiNello appointed CEO at Flagstar |first=Tom |last=Henderson |newspaper=Crain's Detroit Business |date=May 17, 2013 |url-access=subscription}}

On February 24, 2012, the United States Department of Justice filed a complaint in the United States District Court for the Southern District of New York against the bank, alleging that it had improperly approved thousands of residential home mortgage loans for government insurance. In February 2013, a U.S. District court in Manhattan found that the bank had materially breached contracts specifying the quality and characteristics of loans to be packaged into the securities.{{cite news |url=https://www.reuters.com/article/assured-flagstar-verdict/update-3-ny-judge-finds-flagstar-liable-for-90-mln-in-mortgage-case-idUSL1N0B5PPP20130206 |title=NY judge finds Flagstar liable for $90 mln in mortgage case |last=Raymond |first=Nate |work=Reuters |date=February 5, 2013}}

{{reflist|2}}

• {{official website|https://www.flagstar.com/}}

{{Authority control}}

Category:Banks based in Michigan

Category:Companies based in Troy, Michigan

Category:Companies listed on the New York Stock Exchange

Category:2022 mergers and acquisitions