FLAGSTAR BANK, N.A. CREDIT RATINGS UPGRADED BY FITCH
Rhea-AI Summary
Flagstar Bank (NYSE: FLG) announced Fitch Ratings has upgraded its credit ratings on March 3, 2026: Long-Term Deposits to BBB- and Short-Term Deposits to F3, both investment grade, and Long-Term Issuer to BB+ with a Stable outlook.
Fitch cited the bank's business transformation, de-risking of the loan portfolio, return to profitability, higher capital levels, and improved funding profile. At December 31, 2025, Flagstar reported $87.5B assets, $61.0B loans, $66.0B deposits, and $8.1B equity.
Positive
- Long-Term Deposits upgraded to BBB- (investment grade)
- Short-Term Deposits upgraded to F3 (investment grade)
- Fitch cited return to profitability and higher capital levels
- Balance sheet metrics: $87.5B assets, $61.0B loans, $66.0B deposits, $8.1B equity
Negative
- Long-Term Issuer rating remains BB+ (non-investment grade)
News Market Reaction – FLG
In the Mar 4 session, FLG gained 0.93%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 12 | Dividend declaration | Positive | -1.0% | Board declared quarterly cash dividends on common and preferred stock. |
| Feb 03 | Conference participation | Positive | +3.5% | Management presented at a major financial services investor conference. |
| Jan 30 | Earnings return | Positive | -2.4% | Returned to profitability with Q4 2025 net and adjusted income growth. |
| Jan 29 | Technology partnership | Positive | +4.6% | Cognizant partnership milestone supporting multi‑year tech transformation. |
| Jan 26 | Branch expansion | Positive | +0.6% | Opened new Private Client Office on Park Avenue in New York City. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
News on partnerships, conferences, and expansion has often seen positive alignment, while dividend and earnings announcements have twice coincided with short-term price pullbacks.
Over the past months, FLG has reported several strategic milestones. In January 2026, it returned to profitability with positive credit metrics, expanded through a new Private Client office in New York, and highlighted a technology transformation partnership with Cognizant. Subsequent conference participation and dividend declarations in February 2026 underscored capital returns and investor outreach. Today’s Fitch upgrade, citing improved asset quality, capital and funding, fits this narrative of balance-sheet strengthening and business transformation already flagged in prior quarterly results and strategic updates.
Key Terms
long-term deposit rating financial
short-term deposit rating financial
long-term issuer rating financial
fdic-assisted transaction regulatory
reverse stock split financial
forward–looking statements regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Both Long-Term and Short-Term Deposit Ratings Raised to Investment Grade
According to Fitch, the upgrade is driven by the Bank's accelerating business transformation, progress in de-risking the loan portfolio, improving asset quality, its return to profitability, higher capital levels, and enhanced funding profile. In addition, the agency cited that the upgrades reflect the execution of Flagstar's balance sheet and business restructuring which has resulted in a lower commercial real estate concentration, lower wholesale borrowings and improved funding costs.
"This ratings upgrade is another milestone for our organization," said Joseph M. Otting, Executive Chairman, President, and Chief Executive Officer of Flagstar Bank, N.A. "The upgrade in both our Long- and Short-Term deposit ratings to investment grade and the improvement in our Long-Term issuer rating reflects the tremendous hard work, focus, and commitment from all our teammates. Over the past two years, we have strengthened our balance sheet, enhanced our capital and liquidity positions, improved our asset quality, diversified the loan portfolio through C&I growth, and executed our strategic plan to transform Flagstar Bank into one of the best performing regional banks in the country. We are extremely pleased that these efforts have been recognized by Fitch."
The investment grade deposits ratings are expected to enhance the Bank's competitive position, support continued deposit growth, and further strengthen relationships with commercial, municipal, and institutional clients.
Summary of Rating Actions:
Long Term Deposits to BBB- from BB+
Short Term Deposits to F3 from B
Long Term Issuer to BB+ from BB
Outlook: Stable
Flagstar Bank, N.A.
Flagstar Bank, N.A. is one of the largest regional banks in the country and is headquartered in
Cautionary Statements Regarding Forward-Looking Statements
This release may include forward–looking statements by us and our authorized officers pertaining to such matters as our goals, beliefs, intentions, and expectations regarding, among other things: (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 achieve profitability goals within projected timeframes and 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 recent holding company reorganization, which was completed in October 2025 (the "Reorganization"), our merger with Flagstar Bancorp, Inc., which was completed in December 2022, our acquisition of substantial portions of the former Signature Bank through an FDIC-assisted transaction, which was completed in March 2023, and our ability to comply with the heightened regulatory standards with respect to governance and risk management programs to which we are subject as a national bank with assets of
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. Accordingly, 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. Further, forward–looking statements speak only as of the date they are made; we do not assume any duty, and do not undertake, to update our forward–looking statements.
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; our ability to achieve the anticipated benefits of the Reorganization; changes 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 impacts of tariffs, sanctions and other trade policies of
More information regarding some of these factors is provided in the Risk Factors section of our Annual Report on Form 10–K for the year ended December 31, 2025 and in other securities reports that we file. Our forward–looking statements may also be subject to other risks and uncertainties, including those we may discuss in this news release, during investor presentations, or in our securities disclosure filings, which are accessible on our website, on the OCC's website at www.occ.gov and on the SEC's website, www.sec.gov.
Investor Contact:
Salvatore J. DiMartino
(516) 683-4286
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SOURCE Flagstar Bank, N.A.