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. In 1997, the company became a
public company via an
initial public offering. It moved its stock listing from the
NASDAQ to the
New York Stock Exchange in 2001. The bank repaid all of the funds it received under TARP in August 2016. Flagstar effected 1:10 reverse stock splits in 2010 and 2012 to maintain its New York Stock Exchange listing. The U.S. Department of Treasury sold its preferred stock of Flagstar to private investors in 2013. In May 2013, Flagstar paid a $110 million settlement to
MBIA. In June 2013, Flagstar reached a $105 million settlement with Assured Guaranty related to its RMBS. Flagstar paid a $93.5 million settlement to
Fannie Mae in November 2011, and $8.9 million to
Freddie Mac regarding its RMBS mortgage repurchase obligations in December 2013. In September 2014, Flagstar agreed to pay $37.5 million to the
Consumer Financial Protection Bureau. In 2013, the company sold a $1.3 billion commercial loan portfolio to
CIT Group. Flagstar Bank was the jersey sponsor of the
Detroit Pistons of the
National Basketball Association for the 2017–18 NBA season. In 2018, the bank acquired 8 branches in
San Bernardino County, California from Desert Community Bank. These branches continued to operate under the Desert Community Bank name until 2024. The company also acquired a mortgage warehouse loan portfolio from
Santander Bank. During that same year, Flagstar also acquired 52
Wells Fargo branches in Indiana, Michigan, and Ohio, as well as four in Wisconsin. However, numerous issues plagued Flagstar during the transfer, several of which were caused by its main website experiencing technical glitches. Flagstar waived fees, added staff and published an email address where customers could send concerns to alleviate issues. The bank stated that most issues had been resolved by the end of the week. In 2019, the company initiated a
dividend.
Community 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.
Management 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. 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. John D. Lewis, former vice chairman and director of
Comerica, was named chairman. Alessandro P. DiNello became president, CEO and director of the organizations in 2013. ==Acquisition by New York Community Bank==