Flagstar Bank's Credit Ratings Upgraded to Investment Grade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2026
0mins
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: 13.370
Low
13.00
Averages
14.30
High
16.00
Current: 13.370
Low
13.00
Averages
14.30
High
16.00
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's Credit Ratings Upgraded to Investment Grade
- Credit Rating Upgrade: Moody's upgraded Flagstar Bank's Long-Term Deposit rating from Ba1 to Baa3 and Short-Term Deposit rating from Not Prime to Prime-3, indicating a significant improvement in the bank's credit ratings and reflecting its overall enhanced financial performance.
- Profitability Improvement: Moody's highlighted the successful remediation of a previously identified material weakness in internal controls over financial reporting, with a credible path towards sustainable profitability and an expected consistent Return on Average Assets above 0.5%, boosting market confidence.
- Strengthened Capital Position: The rating upgrade is accompanied by a materially strengthened capital position, which is expected to enhance the bank's funding profile, expand access to corporate, institutional, and municipal deposit relationships, and support continued growth.
- Increased Market Recognition: This marks the second major rating agency to upgrade Flagstar's ratings in recent weeks, underscoring market recognition of its operational performance and further solidifying its competitive position among regional banks.
See More
Flagstar Bank Credit Ratings Upgraded to Investment Grade
- Credit Rating Upgrade: Moody's upgraded Flagstar Bank's Long-Term Deposit rating from Ba1 to Baa3 and Short-Term Deposit rating from Not Prime to Prime-3, indicating a significant improvement in the bank's credit ratings and reflecting its overall enhanced financial performance.
- Profitability Improvement: Moody's highlighted the successful remediation of previously identified material weaknesses in internal controls over financial reporting, with a credible path toward sustainable profitability, projecting a consistent Return on Average Assets above 0.5%, which boosts market confidence.
- Strengthened Capital Position: The rating upgrade is accompanied by a materially strengthened capital position for Flagstar Bank, expected to enhance its funding profile and expand access to corporate, institutional, and municipal deposit relationships, supporting the bank's continued growth.
- Increased Market Recognition: This marks the second major rating agency to upgrade Flagstar Bank's ratings recently, indicating strong market recognition of its operational performance and further solidifying its position in the competitive regional banking sector.
See More
Flagstar Bank Credit Ratings Upgraded to Investment Grade
- Credit Rating Upgrade: Moody's has upgraded Flagstar Bank's Long-Term Deposit rating from Ba1 to Baa3 and Short-Term Deposit rating from Not Prime to Prime-3, marking the bank's first attainment of investment-grade status, reflecting significant improvements in its financial performance.
- Financial Performance Improvement: The rating upgrade is attributed to Flagstar's successful remediation of previously identified material weaknesses in internal controls over financial reporting, and its progress towards sustainable profitability, with expectations of a stable Return on Average Assets above 0.5%, enhancing market confidence.
- Expanded Market Impact: The attainment of investment-grade deposit ratings is expected to enhance Flagstar's funding profile, expanding access to corporate, institutional, and municipal deposit relationships, thereby further supporting its business growth and market share increase.
- Strategic Significance: This rating upgrade follows a similar action by Fitch in March, indicating Flagstar's ongoing efforts to strengthen its balance sheet and improve credit quality, showcasing its robust growth potential in a competitive banking landscape.
See More
Flagstar Bank Appoints New Board Member Eli H. Miller
- New Board Member: Flagstar Bank appointed Eli H. Miller to its Board of Directors effective April 1, 2026, aiming to enhance governance and execute its strategic plan to improve market competitiveness.
- Extensive Industry Experience: As Senior Managing Director at Liberty Strategic Capital, Miller is involved in setting strategic direction and high-level investment decisions, which is expected to bring valuable industry insights and resource integration capabilities to Flagstar.
- Background History: Prior to joining Liberty, Miller served as Managing Director of Government Relations at Blackstone, focusing on public policy, a background that will aid Flagstar in navigating the policy landscape more effectively.
- Asset Scale and Market Position: As of December 31, 2025, Flagstar Bank had $87.5 billion in assets, $61.0 billion in loans, and $66.0 billion in deposits, demonstrating its strong market position as one of the largest regional banks in the U.S.
See More
Flagstar Bank Appoints New Board Member Eli H. Miller
- New Board Member: Flagstar Bank appointed Eli H. Miller to its Board of Directors effective April 1, 2026, aiming to enhance board expertise to support the bank's strategic transformation and market position improvement.
- Extensive Industry Experience: Miller, currently a Senior Managing Director at Liberty Strategic Capital, brings a wealth of experience across government, industry, and financial services, which is expected to significantly bolster Flagstar's operational excellence and sustainable shareholder returns.
- Strategic Plan Execution: Miller's appointment aligns with the previously disclosed investment agreement dated March 7, 2024, indicating Flagstar's commitment to leveraging its partnership with Liberty to enhance market competitiveness while executing its strategic plan.
- Asset Scale and Market Position: As of December 31, 2025, Flagstar Bank reported assets of $87.5 billion, loans of $61.0 billion, and deposits of $66.0 billion, underscoring its strong market position as one of the largest regional banks in the U.S.
See More
Mphasis Completes Major Tech Modernization with Flagstar Bank
- Successful Tech Modernization: Mphasis and Flagstar Bank's collaboration has successfully completed a technology modernization program, consolidating six legacy data centers into two modern facilities, enhancing the bank's operational efficiency and technology infrastructure to support its goal of becoming a top U.S. regional bank.
- Zero Downtime Migration: Over approximately 12 months, Mphasis successfully migrated hundreds of critical business applications to the new platform with zero downtime, showcasing its execution capabilities and technical expertise in large-scale projects.
- Enhanced Disaster Recovery: The new platform significantly improves Flagstar's disaster recovery capabilities and operational resilience, enabling the bank to better respond to evolving customer needs and market opportunities, thereby strengthening its competitive position.
- Support for Future Growth: The partnership between Mphasis and Flagstar will deepen, with the next phase focusing on modernizing the bank's applications and operations using AI and next-generation technologies, supporting Flagstar's long-term growth strategy.
See More
Flagstar Bank's Credit Ratings Upgraded to Investment Grade
- Credit Rating Upgrade: Moody's upgraded Flagstar Bank's Long-Term Deposit rating from Ba1 to Baa3 and Short-Term Deposit rating from Not Prime to Prime-3, indicating a significant improvement in the bank's credit ratings and reflecting its overall enhanced financial performance.
- Profitability Improvement: Moody's highlighted the successful remediation of a previously identified material weakness in internal controls over financial reporting, with a credible path towards sustainable profitability and an expected consistent Return on Average Assets above 0.5%, boosting market confidence.
- Strengthened Capital Position: The rating upgrade is accompanied by a materially strengthened capital position, which is expected to enhance the bank's funding profile, expand access to corporate, institutional, and municipal deposit relationships, and support continued growth.
- Increased Market Recognition: This marks the second major rating agency to upgrade Flagstar's ratings in recent weeks, underscoring market recognition of its operational performance and further solidifying its competitive position among regional banks.
See More
Flagstar Bank Credit Ratings Upgraded to Investment Grade
- Credit Rating Upgrade: Moody's upgraded Flagstar Bank's Long-Term Deposit rating from Ba1 to Baa3 and Short-Term Deposit rating from Not Prime to Prime-3, indicating a significant improvement in the bank's credit ratings and reflecting its overall enhanced financial performance.
- Profitability Improvement: Moody's highlighted the successful remediation of previously identified material weaknesses in internal controls over financial reporting, with a credible path toward sustainable profitability, projecting a consistent Return on Average Assets above 0.5%, which boosts market confidence.
- Strengthened Capital Position: The rating upgrade is accompanied by a materially strengthened capital position for Flagstar Bank, expected to enhance its funding profile and expand access to corporate, institutional, and municipal deposit relationships, supporting the bank's continued growth.
- Increased Market Recognition: This marks the second major rating agency to upgrade Flagstar Bank's ratings recently, indicating strong market recognition of its operational performance and further solidifying its position in the competitive regional banking sector.
See More
Flagstar Bank Credit Ratings Upgraded to Investment Grade
- Credit Rating Upgrade: Moody's has upgraded Flagstar Bank's Long-Term Deposit rating from Ba1 to Baa3 and Short-Term Deposit rating from Not Prime to Prime-3, marking the bank's first attainment of investment-grade status, reflecting significant improvements in its financial performance.
- Financial Performance Improvement: The rating upgrade is attributed to Flagstar's successful remediation of previously identified material weaknesses in internal controls over financial reporting, and its progress towards sustainable profitability, with expectations of a stable Return on Average Assets above 0.5%, enhancing market confidence.
- Expanded Market Impact: The attainment of investment-grade deposit ratings is expected to enhance Flagstar's funding profile, expanding access to corporate, institutional, and municipal deposit relationships, thereby further supporting its business growth and market share increase.
- Strategic Significance: This rating upgrade follows a similar action by Fitch in March, indicating Flagstar's ongoing efforts to strengthen its balance sheet and improve credit quality, showcasing its robust growth potential in a competitive banking landscape.
See More
Flagstar Bank Appoints New Board Member Eli H. Miller
- New Board Member: Flagstar Bank appointed Eli H. Miller to its Board of Directors effective April 1, 2026, aiming to enhance governance and execute its strategic plan to improve market competitiveness.
- Extensive Industry Experience: As Senior Managing Director at Liberty Strategic Capital, Miller is involved in setting strategic direction and high-level investment decisions, which is expected to bring valuable industry insights and resource integration capabilities to Flagstar.
- Background History: Prior to joining Liberty, Miller served as Managing Director of Government Relations at Blackstone, focusing on public policy, a background that will aid Flagstar in navigating the policy landscape more effectively.
- Asset Scale and Market Position: As of December 31, 2025, Flagstar Bank had $87.5 billion in assets, $61.0 billion in loans, and $66.0 billion in deposits, demonstrating its strong market position as one of the largest regional banks in the U.S.
See More
Flagstar Bank Appoints New Board Member Eli H. Miller
- New Board Member: Flagstar Bank appointed Eli H. Miller to its Board of Directors effective April 1, 2026, aiming to enhance board expertise to support the bank's strategic transformation and market position improvement.
- Extensive Industry Experience: Miller, currently a Senior Managing Director at Liberty Strategic Capital, brings a wealth of experience across government, industry, and financial services, which is expected to significantly bolster Flagstar's operational excellence and sustainable shareholder returns.
- Strategic Plan Execution: Miller's appointment aligns with the previously disclosed investment agreement dated March 7, 2024, indicating Flagstar's commitment to leveraging its partnership with Liberty to enhance market competitiveness while executing its strategic plan.
- Asset Scale and Market Position: As of December 31, 2025, Flagstar Bank reported assets of $87.5 billion, loans of $61.0 billion, and deposits of $66.0 billion, underscoring its strong market position as one of the largest regional banks in the U.S.
See More
Mphasis Completes Major Tech Modernization with Flagstar Bank
- Successful Tech Modernization: Mphasis and Flagstar Bank's collaboration has successfully completed a technology modernization program, consolidating six legacy data centers into two modern facilities, enhancing the bank's operational efficiency and technology infrastructure to support its goal of becoming a top U.S. regional bank.
- Zero Downtime Migration: Over approximately 12 months, Mphasis successfully migrated hundreds of critical business applications to the new platform with zero downtime, showcasing its execution capabilities and technical expertise in large-scale projects.
- Enhanced Disaster Recovery: The new platform significantly improves Flagstar's disaster recovery capabilities and operational resilience, enabling the bank to better respond to evolving customer needs and market opportunities, thereby strengthening its competitive position.
- Support for Future Growth: The partnership between Mphasis and Flagstar will deepen, with the next phase focusing on modernizing the bank's applications and operations using AI and next-generation technologies, supporting Flagstar's long-term growth strategy.
See More
