NYCB to be renamed Flagstar Financial as turnaround gathers pace

(Reuters) -New York Community Bancorp will rename itself as Flagstar Financial, the U.S. regional lender said on Tuesday, amid efforts to turn around its struggling business.

The bank came under pressure after it reported in January increased stress in its commercial real estate portfolio that also rekindled concerns over the health of the sector recovering from the failures of a slew of regional banks in 2023.

Under Joseph Otting, a former comptroller of the currency who was named CEO in March, NYCB has laid out a plan to return to profitability and vowed to shrink its balance sheet by reducing non-core assets.

The name change marks “another milestone in our ongoing transformation”, Otting said in a statement on Tuesday.

NYCB will also change its stock symbol to “FLG.” The name change will become effective on Oct. 25.

Flagstar Bank is a subsidiary of New York Community Bancorp. The lender announced its $2.6 billion acquisition of Flagstar in 2021.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Sriraj Kalluvila and Alan Barona)