Flagstar Financial receives regulatory approval for holding company merger

HICKSVILLE, N.Y. - Flagstar Financial, Inc. (NYSE:FLG), a regional bank with a market capitalization of $5 billion, announced Monday it has received approval from the Office of the Comptroller of the Currency to merge the company with its subsidiary, Flagstar Bank, N.A.

The reorganization will result in Flagstar Bank becoming the surviving entity while maintaining the same NYSE ticker symbol "FLG" currently used by the parent company.

The merger still requires shareholder approval, which the company seeks to obtain at a Special Meeting of Shareholders scheduled for October 15. Assuming shareholder approval is granted, Flagstar expects to complete the reorganization by late October.

Flagstar Financial serves as the parent company of Flagstar Bank, which operates approximately 360 locations across nine states. As of June 30, 2025, the company reported $92.2 billion in assets, $64.4 billion in loans, $69.7 billion in deposits, and $8.1 billion in total stockholders’ equity.

The bank maintains strong market positions in the New York/New Jersey metropolitan region and the upper Midwest, along with significant presence in Florida and West Coast markets.

This announcement comes after Flagstar completed a $1.05 billion capital raise in March 2024 and a reverse stock split in July 2024. The company also recently divested its mortgage servicing operations, third-party mortgage loan origination business, and mortgage warehouse business.

The information in this article is based on a company press release statement.

In other recent news, Flagstar Financial Inc. reported its second-quarter earnings for 2025, showing an adjusted net loss of $0.14 per diluted share, aligning with analyst expectations. The company’s revenue reached $496 million, which was below the forecasted $519.38 million. In a strategic move, Flagstar Financial announced it has entered into voting agreements with affiliates of Liberty 77 Capital L.P., Hudson Bay Capital Management, LP, and Reverence Capital Partners, L.P. These agreements support Flagstar Financial’s plan to merge with its wholly owned subsidiary, Flagstar Bank, N.A., as part of an internal reorganization. This merger will result in Flagstar Bank being the surviving entity. Additionally, Flagstar Bank appointed Brett Mitstifer as Executive Vice President and Chief Investment Officer of its Private Banking & Wealth Management division. Mitstifer brings over 30 years of experience to his new role and will be based in New York City. These developments reflect the company’s ongoing efforts to strengthen its financial position and leadership team.

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