HICKSVILLE, N.Y., Dec. 13,
2024 /PRNewswire/ -- Flagstar Financial, Inc.
(NYSE: FLG) (the "Company"),
today announced the appointment of Lee Smith as Senior Executive Vice President and
Chief Financial Officer (CFO), effective December 27, 2024. The appointment follows the
decision of current CFO Craig
Gifford to step down to reengage in personal endeavors
outside of the banking industry. Gifford will remain with the Bank
through March 31, 2025, and work
closely with Smith during the transition period, ensuring a
seamless hand-over and continued support for the Bank's ongoing
initiatives.
"For more than a decade, Lee has been an instrumental member of
Flagstar's executive team. He is a proven leader with a strong
track record, has the requisite experience and expertise, and
possesses deep knowledge of the Company. The Board of Directors and
I have full faith and confidence in Lee to continue to help guide
the Company in this financial leadership position," said
Joseph M. Otting, Chairman,
President, and CEO.
Smith joined legacy Flagstar Bancorp, Inc. in 2013 as Chief
Operating Officer and his transition to CFO comes after serving on
Flagstar's executive management team for more than a decade, most
recently as President of Mortgage. He has an extensive background
in accounting, finance, mortgage, private equity, and operations,
spanning more than 25 years. His experience in managing large-scale
transactions, optimizing financials and operations, and working
with regulators demonstrates a strong ability to drive financial
performance, ensure compliance, and lead financial operations.
Additionally, his leadership in M&A deals, capital markets, and
financial management positions him well to oversee financial
strategies, risk mitigation, and operational efficiency at a senior
financial level.
His prior roles include Partner at Matlin Patterson Global
Advisers LLC, a private investment firm. He is also a member of the
Institute of Chartered Accountants in England and Wales (ICAEW) since 1998 and has a BSc in
Economics and Accountancy from Loughborough
University in England.
Otting added, "I want to express our sincere appreciation to Craig
for his impactful contributions over the past year. His leadership
during this time has been invaluable, and we wish him all the best.
As all of our stakeholders know, we have been working relentlessly
to elevate Flagstar to new heights. I also recognize the personal
sacrifices and time commitment required away from our personal
lives for this journey. Given the substantial progress we've made
as a Company, I am comfortable that this is a good time for this
transition, and I am confident the momentum we've gained will only
strengthen as we move forward."
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 September 30, 2024, the Company had
$114.4 billion of assets,
$73.0 billion of loans, deposits of
$83.0 billion, and total
stockholders' equity of $8.6 billion.
Flagstar Bank, N.A. operates over 400 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.
