Analyst: Flagstar may be leaving Rhode Island

By Rhonda Miller
PBN Staff Writer

When Rhode Island native Steven Issa was tapped in 2011 to lead Mich.-based Flagstar Bancorp Inc.’s move into New England, his local ties made the Ocean State a natural launching point. More

To continue reading this article, please do one of the following.



BANKING

Analyst: Flagstar may be leaving Rhode Island

Issa

By Rhonda Miller
PBN Staff Writer

Posted 1/14/13

When Rhode Island native Steven Issa was tapped in 2011 to lead Mich.-based Flagstar Bancorp Inc.’s move into New England, his local ties made the Ocean State a natural launching point.

But aside from renovations to a sixth-floor office in the Textron Building in Providence, it’s hard to gauge what kind of physical presence the company has has managed locally. Now it may be exiting the region entirely.

Flagstar earlier this month announced it is selling for an estimated $779 million its Northeast-based commercial loan portfolio to CIT Bank.

“This transaction is another step in renewing Flagstar’s focus on our community banking operation in Michigan and our national mortgage business,” Flagstar CEO Michael Tierney said in the release.

Senior analyst Christine Pratt of the Aite Group in Boston, which does research on technologies for the banking industry, last week said Flagstar’s direction looks pretty clear.

“My take on it is they opened a commercial loan office and now they sold their commercial loans for the region, so I think they’re moving out of the Rhode Island operation,” said Pratt. “They gathered commercial real estate and equipment leasing loans and both of those types of loans are tied to construction, which we know is not flourishing.”

Flagstar has declined to comment on what the sale means for its New England operation, or on what that business entails.

As of last week, the only Flagstar employee that could be confirmed in Rhode Island by Providence Business News was Issa, president of Flagstar’s New England market. Issa told PBN on Jan. 9 that the Flagstar office in the Textron Building “is open and it’s business as usual. It’s our corporate commercial lending office and we have lending teams and support teams, as before.”

Issa, however, would not comment on how many employees are in the Providence office or on the status of the bank’s New England plans. Issa said he also serves as managing director for all commercial lending for Flagstar.

Next Page
Calendar
PBN Hosted
Events

Estate and Corporate Income Taxes are changing next year, and business owners and executives should know the details. The PBN Summit on November 6th will provide those details and more - including how much Obamacare's Employer Mandate could cost.
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement