- A group of leading and influential nonprofit and community
leaders attended
- Dialogue centered on reimagining future of community
reinvestment strategies
- Intent to formalize goals and objectives for sustained
meaningful impact
HICKSVILLE, N.Y., Jan. 31,
2025 /PRNewswire/ -- Flagstar Bank, N.A., (the
"Bank") a subsidiary of Flagstar Financial, Inc. (NYSE: FLG) (the
"Company") convened a group of influential nonprofit and community
group leaders from key sectors—such as affordable housing, small
business, economic development, and support for veterans,
Indigenous communities, and People of Color—to meet with the Bank's
executive leadership for a roundtable discussion aimed at
reimagining expectations for the Bank's Community Reinvestment Act
(CRA) engagement.
The dialogue centered on how Flagstar can strengthen support for
low- and moderate-income (LMI) communities by identifying
actionable strategies to transform their approach to community
reinvestment. Discussions included equitable access to credit,
affordable housing, community development, and creating sustainable
economic opportunities. The intent is to formalize a strategic
advisory group to continue this impactful dialogue and drive
forward more effective support and engagement in the communities
the Bank serves.
"Flagstar is in the midst of a transformative multi-year
journey, and a key part of that is how we show up and engage within
our communities—not just in words, but in action," said
Joseph M. Otting, Chairman,
President, and CEO. "Being a leading regional bank means embracing
reinvention, and CRA is no exception. Just as we are evolving
within our company, we see an opportunity to include a broader
range of voices—particularly from historically underserved
communities—to reframe CRA engagement and build on existing efforts
to create meaningful, lasting positive change. By engaging these
leaders, we gain critical insights to assess local needs, evaluate
the impact of our initiatives, and identify opportunities to
enhance our CRA strategy. As we right-size our investments to align
with the company we are today, their relationships are essential to
ensuring our efforts deliver meaningful and measurable
outcomes."
This initiative is integral to Flagstar's focus on enhancing its
community-centered activities to align with its strategic
transformation and better meet the credit and banking needs of LMI
communities. These efforts are not just about fulfilling regulatory
requirements; they aim to foster meaningful, sustainable growth and
create lasting, positive opportunities in the communities the Bank
serves.
About Flagstar Financial, Inc.
Flagstar Financial, Inc. is the parent company of Flagstar Bank,
N.A., one of the largest regional banks in the country. The Company
is headquartered in Hicksville, New
York. At December 31, 2024, the Company had
$100.2 billion of assets,
$69.2 billion of loans, deposits of
$75.9 billion, and total
stockholders' equity of $8.2
billion.
Flagstar Bank, N.A. operates 418 branches, including a
significant presence in the Northeast and Midwest and locations in
high growth markets in the Southeast and West Coast. In addition,
the Bank has approximately 80 private banking teams located in over
10 cities in the metropolitan New York
City region and on the West Coast, which serve the needs of
high-net worth individuals and their businesses.
Cautionary Statements Regarding Forward-Looking
Statements
This release may include forward‐looking statements by the
Company and our authorized officers pertaining to such matters as
our goals, beliefs, intentions, and expectations regarding (a)
revenues, earnings, loan production, asset quality, liquidity
position, capital levels, risk analysis, divestitures,
acquisitions, and other material transactions, among other matters;
(b) the future costs and benefits of the actions we may take; (c)
our assessments of credit risk and probable losses on loans and
associated allowances and reserves; (d) our assessments of interest
rate and other market risks; (e) our ability to execute on our
strategic plan, including the sufficiency of our internal
resources, procedures and systems; (f) our ability to attract,
incentivize, and retain key personnel and the roles of key
personnel; (g) our ability to achieve our financial and other
strategic goals, including those related to our merger with
Flagstar Bancorp, Inc., which was completed on December 1, 2022,
our acquisition of substantial portions of the former Signature
Bank through an FDIC-assisted transaction, and our ability to fully
and timely implement the risk management programs institutions
greater than $100 billion in assets must maintain; (h) the effect
on our capital ratios of the approval of certain proposals approved
by our shareholders during our 2024 annual meeting of shareholders;
(i) the conversion or exchange of shares of the Company's preferred
stock; (j) the payment of dividends on shares of the Company's
capital stock, including adjustments to the amount of dividends
payable on shares of the Company's preferred stock; (k) the
availability of equity and dilution of existing equity holders
associated with amendments to the 2020 Omnibus Incentive Plan; (l)
the effects of the reverse stock split; and (m) transactions
relating to the sale of our mortgage business and mortgage
warehouse business.
Forward‐looking statements are typically identified by such
words as
"believe," "expect," "anticipate," "intend," "outlook," "estimate,"
"forecast," "project," "should," "confident," and other similar
words and expressions, and are subject to numerous assumptions,
risks, and uncertainties, which change over time. Additionally,
forward‐looking statements speak only as of the date they are made;
the Company does not assume any duty, and does not undertake, to
update our forward‐looking statements. Furthermore, because
forward‐looking statements are subject to assumptions and
uncertainties, actual results or future events could differ,
possibly materially, from those anticipated in our statements, and
our future performance could differ materially from our historical
results.
Our forward‐looking statements are subject to, among others, the
following principal risks and uncertainties: general economic
conditions and trends, either nationally or locally; conditions in
the securities, credit and financial markets; changes in interest
rates; changes in deposit flows, and in the demand for deposit,
loan, and investment products and other financial services; changes
in real estate values; changes in the quality or composition of our
loan or investment portfolios, including associated allowances and
reserves; changes in future allowance for credit losses, including
changes required under relevant accounting and regulatory
requirements; the ability to pay future dividends; changes in our
capital management and balance sheet strategies and our ability to
successfully implement such strategies; recent turnover in our
Board of Directors and our executive management team; changes in
our strategic plan, including changes in our internal resources,
procedures and systems, and our ability to successfully implement
such plan; changes in competitive pressures among financial
institutions or from non‐financial institutions; changes in
legislation, regulations, and policies; the imposition of
restrictions on our operations by bank regulators; the outcome of
pending or threatened litigation, or of investigations or any other
matters before regulatory agencies, whether currently existing or
commencing in the future; the success of our blockchain and fintech
activities, investments and strategic partnerships; the
restructuring of our mortgage business; our ability to recognize
anticipated expense reductions and enhanced efficiencies with
respect to our recently announced strategic workforce reduction;
the impact of failures or disruptions in or breaches of the
Company's operational or security systems, data or infrastructure,
or those of third parties, including as a result of cyberattacks or
campaigns; the impact of natural disasters, extreme weather events,
military conflict (including the Russia/Ukraine conflict, the conflict in Israel and surrounding areas, the possible
expansion of such conflicts and potential geopolitical
consequences), terrorism or other geopolitical events; and a
variety of other matters which, by their nature, are subject to
significant uncertainties and/or are beyond our control. Our
forward-looking statements are also subject to the following
principal risks and uncertainties with respect to our merger with
Flagstar Bancorp, which was completed on December 1, 2022, and our acquisition of
substantial portions of the former Signature Bank through an
FDIC-assisted transaction: the possibility that the anticipated
benefits of the transactions will not be realized when expected or
at all; the possibility of increased legal and compliance costs,
including with respect to any litigation or regulatory actions
related to the business practices of acquired companies or the
combined business; diversion of management's attention from ongoing
business operations and opportunities; the possibility that the
Company may be unable to achieve expected synergies and operating
efficiencies in or as a result of the transactions within the
expected timeframes or at all; and revenues following the
transactions may be lower than expected. Additionally, there can be
no assurance that the Community Benefits Agreement entered into
with NCRC, which was contingent upon the closing of the Company's
merger with Flagstar Bancorp, Inc., will achieve the results or
outcome originally expected or anticipated by us as a result of
changes to our business strategy, performance of the U.S. economy,
or changes to the laws and regulations affecting us, our customers,
communities we serve, and the U.S. economy (including, but not
limited to, tax laws and regulations).
More information regarding some of these factors is provided in
the Risk Factors section of our Annual Report on Form 10‐K/A for
the year ended December 31, 2023, Quarterly Report on Forms
10-Q for the quarters ended March 31,
2024, June 30, 2024, and
September 30, 2024, and in other SEC
reports we file. Our forward‐looking statements may also be subject
to other risks and uncertainties, including those we may discuss in
this news release, on our conference call, during investor
presentations, or in our SEC filings, which are accessible on our
website and at the SEC's website, www.sec.gov.
Investor Contact:
Salvatore J. DiMartino
(516) 683-4286
Media Contact:
Steven Bodakowski
248-312-5872
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SOURCE Flagstar Financial, Inc.
