FLAGSTAR BANK IMPLEMENTS WORKFORCE CHANGES AS PART OF ITS CONTINUED TRANSFORMATION AND COST REDUCTION STRATEGY
Flagstar Bank, a subsidiary of New York Community Bancorp, Inc. (NYSE: NYCB), announced a workforce reduction as part of its strategic transformation plan. The reduction affects approximately 700 employees, or 8% of its workforce. Additionally, the previously announced sale of its Mortgage Servicing and Third-Party Origination business to Mr. Cooper, expected to close in Q4 2024, will result in a further reduction of about 1,200 employees.
CEO Joseph Otting stated that these actions, while difficult, are essential for strengthening the company's financial foundation and building a more agile, competitive organization. The reductions aim to optimize operations after integrating three legacy banks through acquisitions. The company remains committed to building a diversified, leading regional bank and positioning itself for long-term success.
Flagstar Bank, una sussidiaria di New York Community Bancorp, Inc. (NYSE: NYCB), ha annunciato una riduzione della forza lavoro come parte del suo piano di trasformazione strategica. La riduzione riguarda circa 700 dipendenti, ovvero l'8% della sua forza lavoro. Inoltre, la vendita precedentemente annunciata della sua attività di Servizio Mutui e Origine Terza Parte a Mr. Cooper, prevista per la chiusura nel quarto trimestre del 2024, comporterà una riduzione ulteriore di circa 1.200 dipendenti.
Il CEO Joseph Otting ha dichiarato che queste azioni, sebbene difficili, sono essenziali per rafforzare la base finanziaria dell'azienda e costruire un'organizzazione più agile e competitiva. Le riduzioni mirano a ottimizzare le operazioni dopo l'integrazione di tre banche legacy tramite acquisizioni. L’azienda rimane impegnata a costruire una banca regionale diversificata e leader, posizionandosi per un successo a lungo termine.
Flagstar Bank, una subsidiaria de New York Community Bancorp, Inc. (NYSE: NYCB), anunció una reducción de la fuerza laboral como parte de su plan de transformación estratégica. La reducción afecta a aproximadamente 700 empleados, o el 8% de su fuerza laboral. Además, la venta previamente anunciada de su negocio de Servicios Hipotecarios y Originación de Terceros a Mr. Cooper, que se espera cierre en el cuarto trimestre de 2024, resultará en una reducción adicional de aproximadamente 1,200 empleados.
El CEO Joseph Otting declaró que estas acciones, aunque difíciles, son esenciales para fortalecer la base financiera de la empresa y construir una organización más ágil y competitiva. Las reducciones están destinadas a optimizar las operaciones tras la integración de tres bancos históricos mediante adquisiciones. La empresa sigue comprometida a construir un banco regional diversificado y líder, posicionándose para un éxito a largo plazo.
플래그 스타 은행(Flagstar Bank)은 뉴욕 커뮤니티 뱅코프, Inc. (NYSE: NYCB)의 자회사로서 전략적 변환 계획의 일환으로 인력 감축을 발표했습니다. 이 감축은 약 700명의 직원, 즉 8%에 영향을 미칩니다. 또한, Mr. Cooper에게 모기지 서비스 및 제3자 오리진 비즈니스를 판매하는 것이 이전에 발표되었으며, 이는 2024년 4분기에 마감될 예정입니다. 이 매각은 약 1,200명의 직원을 추가로 감축하는 결과를 초래할 것입니다.
CEO 조셉 오팅(Joseph Otting)은 이러한 조치가 어렵지만 회사의 재정 기반을 강화하고 더 민첩하고 경쟁력 있는 조직을 구축하는 데 필수적이라고 설명했습니다. 이 감축은 인수 합병을 통해 세 개의 레거시 은행을 통합한 후 운영 최적화를 목표로 하고 있습니다. 회사는 다각화된 선두 지역 은행을 설립하고 장기적인 성공을 위해 자리매김하는 것에 계속해 헌신하고 있습니다.
Flagstar Bank, une filiale de New York Community Bancorp, Inc. (NYSE: NYCB), a annoncé une réduction de personnel dans le cadre de son plan de transformation stratégique. La réduction concerne environ 700 employés, soit 8% de sa main-d'œuvre. De plus, la vente précédemment annoncée de son activité de services hypothécaires et d'origine tierce à Mr. Cooper, qui devrait se conclure au quatrième trimestre 2024, entraînera une nouvelle réduction d'environ 1 200 employés.
Le PDG Joseph Otting a déclaré que ces actions, bien que difficiles, sont essentielles pour renforcer la base financière de l'entreprise et créer une organisation plus agile et compétitive. Les réductions visent à optimiser les opérations après l'intégration de trois banques historiques par le biais d'acquisitions. L'entreprise reste déterminée à construire une banque régionale diversifiée et leader, se positionnant pour un succès à long terme.
Flagstar Bank, eine Tochtergesellschaft von New York Community Bancorp, Inc. (NYSE: NYCB), hat im Rahmen ihres strategischen Transformationsplans eine Reduzierung der Mitarbeiterzahl angekündigt. Die Reduzierung betrifft ungefähr 700 Mitarbeiter, oder 8% der Belegschaft. Darüber hinaus wird der zuvor angekündigte Verkauf ihres Hypothekenverwaltungs- und Drittanbieter-Origination-Geschäfts an Mr. Cooper, der voraussichtlich im vierten Quartal 2024 abgeschlossen wird, zu einer weiteren Reduzierung von etwa 1.200 Mitarbeitern führen.
CEO Joseph Otting erklärte, dass diese Maßnahmen, obwohl schwierig, entscheidend sind, um die finanzielle Grundlage des Unternehmens zu stärken und ein agileres, wettbewerbsfähigeres Unternehmen aufzubauen. Die Reduzierungen zielen darauf ab, die Abläufe zu optimieren, nachdem drei Traditionsbanken durch Akquisitionen integriert wurden. Das Unternehmen bleibt verpflichtet, eine diversifizierte, führende Regionalbank aufzubauen und sich für langfristigen Erfolg zu positionieren.
- Strategic transformation plan aimed at improving efficiency and integration
- Sale of Mortgage Servicing and Third-Party Origination business progressing, expected to close in Q4 2024
- Majority of 1,200 employees affected by business sale will be offered transfer opportunities to the buyer
- Workforce reduction of approximately 700 employees (8% of total)
- Additional 1,200 employees affected by the sale of Mortgage Servicing and Third-Party Origination business
Insights
The workforce reduction of 8% (700 employees) and the pending sale of the Mortgage Servicing and Third-Party Origination business are significant cost-cutting measures for Flagstar Bank. This aligns with the bank's transformation strategy to improve efficiency and profitability following recent acquisitions.
The reduction is expected to streamline operations and eliminate redundancies, potentially leading to improved operational efficiency and reduced expenses. However, it's important to monitor any potential impacts on service quality or revenue generation capabilities.
The sale of the mortgage business to Mr. Cooper, affecting an additional 1,200 employees, could result in a substantial one-time gain and further streamline the bank's operations. This move suggests a strategic shift away from certain mortgage operations, which may impact future revenue streams but could also reduce risk exposure in a volatile mortgage market.
Investors should closely watch for details on expected cost savings, potential restructuring charges and any changes in revenue projections in upcoming financial reports. The success of this transformation will be critical in determining NYCB's future profitability and competitive position in the regional banking sector.
Commenting on the reduction, Joseph Otting, Chairman, President and CEO stated, "We want to express our appreciation for our employees' contributions. Their hard work and dedication have been greatly appreciated, and we approached this decision with empathy and compassion for everyone affected.
"As part of our commitment to a profitable future, we launched a transformation strategy earlier this year to drive change throughout the organization. This includes strengthening our management and Board, redefining our operational plan for improved efficiency, and enhancing our credit oversight and risk framework.
"While these strategic actions involve difficult decisions, including impacts on jobs, we believe they are essential for strengthening our financial foundation and building a more agile, competitive company. This will enable us to focus on strategic investments in other areas and better serve our clients and shareholders, ensuring long-term sustainability and profitability.
"We have made significant progress this year and will continue to pursue opportunities to optimize our operations and enhance efficiency, paving the way for a more resilient and successful future."
Approximately 700 employees, or
Otting added, "These reductions will not impact our service or progress; in many cases, roles were similar or duplicative. By right sizing our team after bringing three banks together, we are optimizing our operations to move forward with strength and clarity. We remain committed to building a diversified, leading regional bank and positioning our company for long-term success, and though challenging, this is another step in that journey."
About New York Community Bancorp, Inc.
New York Community Bancorp, Inc. is the parent company of Flagstar Bank, N.A., one of the largest regional banks in the country. The Company is headquartered in
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 90 private banking teams located in over 10 cities in the metropolitan
Cautionary Note Regarding Forward-Looking Statements
The foregoing disclosures may include forward‐looking statements within the meaning of the federal securities laws by the Company pertaining to such matters as our goals, intentions, and expectations regarding (a) our corporate name change and NYSE stock ticker symbol changes; (b) revenues, earnings, loan production, asset quality, liquidity position, capital levels, risk analysis, divestitures, acquisitions, and other material transactions, among other matters; (c) the future costs and benefits of the actions we may take; (d) our assessments of credit risk and probable losses on loans and associated allowances and reserves; (e) our assessments of interest rate and other market risks; (f) our ability to execute on our strategic plan, including the sufficiency of our internal resources, procedures and systems; (g) our ability to attract, incentivize, and retain key personnel and the roles of key personnel; (h) 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
Forward‐looking statements are typically identified by such words as "believe," "expect," "anticipate," "intend," "plan," "outlook," "estimate," "forecast," "project," "should," 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: our ability to effect our corporate name change and NYSE ticker symbol changes on currently anticipated timelines; general economic conditions and trends, either nationally or locally; conditions in the securities, credit and financial markets; changes in interest rates; the inability of the Bank and Nationstar to execute the transaction contemplated by the MSR Purchase Agreement and Asset Purchase Agreement or satisfy customary closing conditions; 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 requirements 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; 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 success of our blockchain and fintech activities, investments and strategic partnerships; the restructuring of our mortgage business; 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
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 Form 10-Q for the quarter ended March 31, 2024 and Quarterly Report on Form 10-Q for the quarter ended June 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 release, 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:
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(248) 312-5872
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SOURCE New York Community Bancorp, Inc.
FAQ
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