Flagstar Bank's Credit Ratings Upgraded to Investment Grade

Written by Emily J. Thompson, Senior Investment Analyst

Source: PRnewswire

Updated: Mar 03 2026

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FLG-0.24%

Should l Buy FLG?

Source: PRnewswire

Credit Rating Upgrade: Fitch has upgraded Flagstar Bank's Long-Term Deposit rating to BBB- and Short-Term Deposit rating to F3, indicating a significant improvement in the bank's credit profile, which is expected to enhance its competitive position in the market.
Asset Quality Improvement: The rating upgrade reflects Flagstar's positive progress in reducing commercial real estate concentration, improving asset quality, and returning to profitability, demonstrating effective risk management practices.
Enhanced Capital Levels: With total assets of $87.5 billion, loans of $61 billion, and deposits of $66 billion, Flagstar Bank's improved capital levels indicate a robust financial foundation and sustainability for future growth.
Successful Strategic Transformation: The bank's execution of balance sheet and business restructuring strategies has diversified its loan portfolio, further strengthening relationships with commercial, municipal, and institutional clients, thereby driving continued deposit growth.

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Analyst Views on FLG

Wall Street analysts forecast FLG stock price to rise

11 Analyst Rating

4 Buy

7 Hold

0 Sell

Moderate Buy

Current: 12.530

Low

13.00

Averages

14.30

High

16.00

Current: 12.530

Low

13.00

Averages

14.30

High

16.00

Morgan Stanley

Equal Weight

maintain

$14 -> $16

2026-03-02

Reason

Morgan Stanley

Price Target

$14 -> $16

AI Analysis

2026-03-02

maintain

Equal Weight

Reason

Morgan Stanley raised the firm's price target on Flagstar Financial to $16 from $14 and keeps an Equal Weight rating on the shares. The firm is increasing price targets by a median 8% across the midcap banks group. While noting that recent outperformance means "the bar is higher from here," the firm remains optimistic on the group, citing tailwinds from loan growth, net interest margin and capital return.

UBS

Neutral

maintain

$13 -> $14

2026-02-04

Reason

UBS

Price Target

$13 -> $14

2026-02-04

maintain

Neutral

Reason

UBS raised the firm's price target on Flagstar Financial (FLG) to $14 from $13 and keeps a Neutral rating on the shares. Mid-cap banks have delivered strong results and avoided early Q4 credit concerns, the analyst tells investors in a research note. Investor momentum into regional banks is expected to continue, supported by curve steepening, accelerating loan growth, and M&A activity such as Santander's (SAN) acquisition of Webster (WBS).

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About FLG

Flagstar Bank, National Association (the Bank) is a regional bank. The Bank operates over 360 locations across nine states, in the greater New York/New Jersey metropolitan region and in the upper Midwest, along with a significant presence in Florida and the West Coast markets. Its private banking includes personal private banking, residential lending, financial planning, investment management, insurance solutions, and business credit and lending. Its services also include personal banking, small business, and corporate and commercial banking. Its treasury management services include cash flow optimization, payables and fraud, and receivables management. Its banking services include working capital solutions, asset-based lending, expansion, merger and acquisition, syndications, capital markets, interest rate risk management, foreign exchange, and global trade services. Its Flagstar Corporate Connect provides small business and commercial banking online treasury management services.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Flagstar Bank Recognized as Best Bank for Customer Service in 2026

10 hours agoNewsfilter

Excellence in Customer Service: Flagstar Bank has been recognized by Crisil Coalition Greenwich as the Best Bank for Customer Service in Middle Market Banking for 2026, highlighting its ongoing commitment to superior client service and performance.
Award Continuity: The bank was also honored in 2025 with multiple awards for small business banking, including Best Bank for Likelihood to Recommend in the Northeast U.S., demonstrating its strong influence in the small business sector.
Strategic Team Development: Executives at Flagstar Bank emphasize that their team is intentionally built to meet client needs and prepare for future growth, a customer-centric strategy that enhances client satisfaction and loyalty.
Robust Asset Base: As of December 31, 2025, Flagstar Bank reported total assets of $87.5 billion, loans of $61 billion, and deposits of $66 billion, indicating its solid position in the financial market and potential for continued growth.

Flagstar Bank Recognized as Best Bank for Customer Service in U.S.

10 hours agoPRnewswire

Customer Service Award: Flagstar Bank has been recognized by Crisil Coalition Greenwich as the Best Bank for Customer Service in Middle Market Banking in the U.S. for 2026, highlighting its exceptional performance in customer service and reinforcing its leadership position in the middle market.
Commitment to Clients: Joe Abruzzo, the bank's executive, stated that this recognition reflects Flagstar's dedication to middle market clients, and the bank will continue to provide deep expertise and tailored solutions to help clients achieve their goals.
Historical Honors: Previously, in 2025, Flagstar was recognized as a top small business bank, demonstrating its ongoing success across different market segments and indicating a continuous improvement in service quality and customer satisfaction.
Market Influence: As one of the largest regional banks in the U.S., Flagstar reported assets of $87.5 billion, loans of $61 billion, and deposits of $66 billion as of the end of 2025, showcasing its strong market position and potential for continued growth.

Flagstar Bank to Participate in Global Financial Conference

6 days agoPRnewswire

Conference Participation: Flagstar Bank will participate in the RBC Capital Markets 2026 Global Financial Institutions Conference in New York on March 11, 2026, with Chairman and CEO Joseph Otting showcasing the bank's leadership in the financial sector.
Executive Attendance: The event will feature several executives, including CFO Lee Smith and President of Commercial and Private Banking Richard Raffetto, highlighting the company's commitment to investor communication.
Live Webcast: The presentation will be available via live webcast on Flagstar Bank's website, allowing investors who cannot attend in person to access real-time information, thereby enhancing transparency and engagement.
Asset Scale: As of December 31, 2025, Flagstar Bank reported total assets of $87.5 billion, loans of $61.0 billion, and deposits of $66.0 billion, demonstrating its strong position and market influence among regional banks.

Flagstar Bank to Participate in RBC Financial Conference

6 days agoNewsfilter

Conference Participation: Flagstar Bank will participate in the RBC Capital Markets 2026 Global Financial Institutions Conference on March 11, 2026, with CEO Joseph Otting and executive team discussing key insights, likely enhancing investor interest in the bank.
Webcast Availability: The presentation will be available via live webcast on Flagstar Bank's website, with a replay accessible approximately 12 hours post-event, which is expected to attract more investors to the bank's latest developments.
Asset Scale: As of December 31, 2025, Flagstar Bank reported total assets of $87.5 billion, loans of $61.0 billion, and deposits of $66.0 billion, underscoring its strong position among regional banks.
Market Presence: Operating approximately 340 locations across the U.S., Flagstar Bank holds significant market share in the greater New York/New Jersey metropolitan area and the upper Midwest, while also establishing a notable presence in rapidly growing markets in Florida and the West Coast.

Fitch Upgrades Flagstar Bank Ratings Amid Restructuring Success

Mar 03 2026seekingalpha

Rating Upgrade: Fitch has upgraded Flagstar Bank's long-term issuer default rating from BB to BB+ and its viability rating from bb to bb+, reflecting the successful execution of its balance sheet and business restructuring.
Return to Profitability: The restructuring has led to a return to profitability for Flagstar, with reduced loan concentration and wholesale funding costs, which is expected to enhance its business profile and achieve greater revenue diversity.
Reduction in Nonaccrual Loans: Flagstar is projected to reduce approximately $1 billion in nonaccrual loans by 2026, with about 45% of this reduction expected to come from the resolution of a large credit relationship in bankruptcy.
Improved Capital Levels: The attrition of risk-weighted assets has resulted in rising capital levels, and Flagstar continues to make significant strides in reducing its reliance on wholesale funding and brokered deposits, thereby enhancing its financial stability.