Our business model

Our relationship-based business model leverages our full-service bank’s capabilities and our national mortgage platform to create and build financial solutions for our customers. The model is based on reliably generating strong, sustainable earnings in a variety of interest-rate environments. Our mix of businesses is deliberately countercyclical. When interest rates are declining, our fee-income businesses such as mortgage originations combined with our warehouse lending business are able to more than offset the declines experienced in net-interest margins. 

Conversely, in a rising rate environment, we see strength in our commercial and consumer lending businesses.

The constant in all of this is our subservicing business, which produces consistent and predictable earnings in any rate environment. 

The final piece of the puzzle is to have the necessary scale and the right balance. Flagstar Bank earnings are close to evenly split between the community bank and mortgage businesses, which expands to 60/40 when any one area is overperforming. Scale and balance are essential to be truly successful in a multitude of economic environments.

Business highlights*

• $2.5 billion in market capital
• $25 billion in assets and $18 billion in deposits
• Total risk-based capital ratio 15.9% (Bancorp)
• 5,400 employees nationwide

*as of 12/31/21