Flagstar Financial to Merge into Bank to Reduce Costs

Flagstar Financial is merging the company into its bank, Flagstar Bank, N.A., to reduce costs and simplify its organizational structure. The merger will streamline managerial, operational, and administrative functions, with the surviving entity retaining the Flagstar Bank name. The move aims to improve efficiency and enhance the company's performance.

Flagstar Financial, Inc. (NYSE: FLG), the holding company for Flagstar Bank, N.A., has announced plans to merge the company into its bank, Flagstar Bank, N.A., to simplify its organizational structure and reduce costs. The merger, which will streamline managerial, operational, and administrative functions, is expected to enhance the company's efficiency and performance.

The merger, subject to regulatory and shareholder approval, will result in Flagstar Bank, N.A. continuing to operate under the same name and trading on the NYSE under the ticker symbol "FLG". The move aims to eliminate redundant corporate activities and duplicative supervision and regulation, thereby focusing resources on customer service and community engagement.

Joseph M. Otting, Chairman, President, and CEO of Flagstar Financial, stated, "This action of simplifying our legal, regulatory, and corporate structure accelerates our mission by reducing unnecessary costs and ensures our focus remains on the customers and communities we serve."

Flagstar Financial, Inc. is one of the largest regional banks in the country, with approximately 400 locations across nine states. At March 31, 2025, the company reported $97.6 billion in assets, $67.1 billion in loans, $73.9 billion in deposits, and $8.2 billion in total stockholders' equity. The company expects to file a proxy statement and other proxy materials with the Securities and Exchange Commission during the third quarter of 2025. Assuming regulatory approvals and shareholder votes, the merger is expected to be completed before the end of the year.

The merger is part of Flagstar Financial's ongoing efforts to build a well-capitalized, diversified, and top-performing regional bank. The company has made significant strides in this area through previous acquisitions and strategic initiatives, including the merger with Flagstar Bancorp, Inc. in December 2022 and the acquisition of substantial portions of the former Signature Bank in March 2023.

The merger will also help Flagstar Financial address previously disclosed material weaknesses in internal control over financial reporting and implement risk management programs required for institutions with assets greater than $100 billion.

References:
[1] https://www.prnewswire.com/news-releases/flagstar-financial-inc-announces-actions-to-enhance-its-corporate-structure-by-merging-holding-company-into-the-bank-302513477.html