A MASSIVE bank has officially entered the third phase of its closures – with plans to shut 60 branches in 2025.
The bank has spent most of this year so far closing branches, leaving Americans to scramble for an alternative.
In April, The US Sun reported on the closure phases of Flagstar, one of the biggest banks in the US.
It comes after the bank merged with New York Community Bank, and changed its name to Flagstar Financial.
Since them, a restructuring effort has been underway to keep operational costs down.
This saw the announcement of a three-phase shut down plan, with the ultimate target of 60 to be shut by the end of the year.
The first wave saw at least 28 Flagstar Financial locations close in March and April, per filings submitted to the Office of the Comptroller of the Currency (OCC).
The second wave then brought another 24 branches to closure on May 30.
Now, the remaining branches will be closed by the end of the year, but a timeline is not yet known.
This will heavily impact Americans across the nine states that Flagstar Financial operates in.
The bank operates in Arizona, California, Florida, Indiana, Michigan, New Jersey, New York, Ohio, and Wisconsin.
It is one of the biggest banks in the US, with around $100 billion in assets, per data from the Federal Reserve.
The US Sun also reported in May that Flagstar Financial topped the list of bank closures for the year at that time.
The rest of the industry is following suit, though.
Between the period of April 1 to April 26, 14 different banks closed branches, and a total of 42 were shut in that time.
Flagstar topped that list with 16 closed.
How to contact your bank
WITH bank scams running rampent, it is important to know how to reach out to your bank without risking fraud.
There is of course the foolproof method of going to your bank in person, but you are likely going to be directed to a customer care phone line.
In order to ensure that you are contacting the bank, make sure to use a phone number given to you by the representative or off of the bank’s website.
Some banks also have online helplines that can securely connect you with a representative.
Conversely, if you think the bank is reaching out to you with an account issue – make sure to verify the concern by calling a bank contact that you know is legitimate.
Scammers commonly mascarade as bank representatives to steal information from frightened customers.
COST CUTTING
The move has been done to cut down on costs, and closing branches is one of the quickest ways to do that.
Flagstar Financial plans to reduce its rent, maintenance, and utility costs through the 60 closures.
Cost cutting moves have been on the go ever since the merger, especially given that the bank recorded a net loss of $845 million for 2024.
Joseph Otting, CEO of Flagstar Financial, stressed that the bank would return to profitability by the end of 2025.
He said: “We are on projections to be profitable now in the fourth quarter of this year.
“I think this will ultimately mark the company’s turning point on its return to consistent profitability.”
The closures are doing a lot to reach this target, as the stock price for Flagstar Financial has risen dramatically since the 60 closures were announced.
At the start of the year, stock was trading at $9 a share, but by the end of January 2025, it had risen to nearly $12.
At the time of writing, the bank’s stock is up roughly 27% from where it was exactly a year ago.
Google MapsThe remaining branches will be closed by the end of the year, but a timeline is not yet known[/caption] Read More Details
Finally We wish PressBee provided you with enough information of ( Massive bank officially enters third phase of closures as it confirms plans to permanently shutter 60 spots in 2025 )
Also on site :
- New federal Covid-19 vaccine policies are already keeping some people from getting shots
- Robert De Niro, 81, Makes Rare Public Appearance With Daughter Helen, 13
- Callum Turner’s Net Worth at the Time of His Engagement to Dua Lipa