Flagstar Bank, N.A., a subsidiary of New York Community Bancorp, Inc., has announced a workforce reduction as part of its strategic transformation plan. Approximately 700 employees, or 8% of the bank's workforce, were impacted by the reduction.
In addition to the reduction, the bank anticipates finalizing the previously announced sale of its mortgage servicing and third-party origination business to Mr. Cooper in the fourth quarter of 2024. This transaction will result in a further reduction of approximately 1,200 employees, the majority of whom will be offered the opportunity to transfer to the buyer.
Flagstar Bank's Chairman, President, and CEO, Joseph Otting, stated that the reductions will not impact the bank's service or progress, and that in many cases, roles were similar or duplicative. The bank remains committed to building a diversified, leading regional bank and positioning the company for long-term success.
As of June 30, 2024, New York Community Bancorp, Inc. had $119.1 billion of assets, $82.4 billion of loans, deposits of $79.0 billion, and total stockholders’ equity of $8.4 billion. Flagstar Bank, N.A. operates over 400 branches and has approximately 90 private banking teams located in over 10 cities in the metropolitan New York City region and on the West Coast, serving the needs of high-net worth individuals and their businesses. As a result of these announcements, the company's shares have moved -1.6% on the market, and are now trading at a price of $12.18. Check out the company's full 8-K submission here.
