Flagstar Bank is set to close 60 branches across the U.S. as part of a sweeping cost-reduction strategy aimed at streamlining operations. Read on to discover which locations are affected, why the bank is making these changes, and how customers could be impacted by the upcoming closures.
Which Flagstar Bank Branches Are Closing?
During its January earnings call, Flagstar Bank announced plans to shut down approximately 60 retail branches and 20 private client offices nationwide. While the company did not initially disclose specific locations, a recent bulletin from the Office of the Comptroller of the Currency (OCC) has shed light on both the branches that have already closed and those scheduled for closure.
Branches Closed as of March 14th, 2025:
- Bellerose, NY: 247-53 Jamaica Avenue
- Auburn, IN: 200 South Van Buren Street
- Allen Park, MI: Flagstar Bank FSB – Allen Park Office, 3233 Fairlane Drive
- Deer Park, NY: 720 Grand Boulevard
- Marquette, MI: NMU Campus, 1401 Presque Isle Avenue
- Union, NJ: 1887 Morris Avenue
- White Lake, MI: Flagstar Bank FSB – White Lake Township Office, 6490 Highland Road
Branches with OCC “Receipt” Notice as of March 14th, 2025:
- Ahwatukee (126), AZ: 4025 E. Chandler Boulevard, Phoenix
- Bell Boulevard, NY: 41-11 Bell Boulevard, Bayside
- Bensonhurst, NY: 8622 Bay Parkway, Brooklyn
- Biltmore (49), AZ: 2200 East Camelback Road, Phoenix
- Cedar Lee (34), OH: 2066 Lee Road, Cleveland Heights
- East Lansing, MI: Flagstar Bank FSB – East Lansing Office, 1400 East Lake Lansing Road
- East Newark, NJ: 155 Central Avenue
- Fairfield, NJ: 23 Little Falls Road
- Grand Rapids, MI: Flagstar Bank FSB – 28th Street Office, 3205 28th Street Southeast
- Jackson, MI: Flagstar Bank FSB – Brown Street Office, 704 South Brown Street
- New Hyde Park, NY: 2335 New Hyde Park Road
- Rego Park, NY: 97-77 Queens Boulevard
- Ronkonkoma, NY: 3425 Veterans Memorial Highway
- Seguine, NY: 5770 Hylan Boulevard, Staten Island
- Springfield Gardens, NY: 134-40 Springfield Boulevard
- Washington Heights, NY: 4246 Broadway, New York City
- West Brighton, NY: 1214 Castleton Avenue, Staten Island
- Westerleigh, NY: 832 Jewett Avenue, Staten Island
- Whitestone, NY: 31-06 Farrington Street
- Woodhaven, NY: 93-22 Jamaica Avenue
Note: In OCC terminology, a “receipt” indicates that the agency has officially received a notice of intended closure from the bank. These branches are expected to close following regulatory procedures.
How the Branch Closures Will Impact Customers
Flagstar Bank’s branch closures are being positioned as a strategic move to streamline operations. As reported by HousingWire.com, Flagstar’s Chief Financial Officer, Lee Smith, described the closures as part of the bank’s “real estate optimization” efforts.
“There are approximately 60 retail branches, most of which we lease, that we are looking to consolidate,” Smith explained. “Again, these are close to other locations, so we do not feel there’ll be any disruption to the customer experience. We’re phasing the closure of those branches in three different phases, one of which is already underway, and then a further two phases that will occur later this year.”
What’s Next for Flagstar Bank
Despite a significant $1.09 billion net loss in 2024, Flagstar Bank CEO Joseph Otting expressed optimism for the future, labeling 2024 as a crucial “transitional year” where “tremendous progress” was made on strategic priorities, setting the stage for future growth. He asserted that the company is now in a better position than it was a year prior. This outlook contrasts with the bank’s situation following a surprise $252 million loss in Q4 2023 related to commercial real estate (CRE), which led to a share price drop, a $2.4 billion impairment charge, and ultimately, Otting’s appointment as CEO after a $1.05 billion capital infusion in March.
Since taking over, Otting has spearheaded a turnaround plan focused on diversifying Flagstar’s portfolio and returning it to profitability. Key actions included the sale of $5 billion in mortgage warehouse loans to JPMorgan Chase and the $1.4 billion sale of its residential mortgage servicing business to Mr. Cooper. Executives emphasized ongoing efforts to reduce the bank’s commercial real estate exposure and manage problem loans. Total CRE balances decreased by 9% in 2024, and the CRE concentration ratio also declined. Otting explained that historically, the bank had taken “very large positions” in commercial real estate.
Looking ahead, Flagstar intends to further reduce its CRE exposure through payoffs and loan sales while actively growing its commercial and industrial loan business and its residential mortgage portfolio. In the fourth quarter of 2024, the bank sold non-accrual CRE assets and moved others to available-for-sale status. To achieve a more balanced portfolio, Otting described a strategy of “pulling those commitments down slightly while we’re growing the market to get better diversity to the portfolio.”