Flagstar Bank

Flagstar Bank is a U.S. regional lender that has weathered a banking crisis, asset restructuring and management turnover in recent years. It recently extended Chief Executive Joseph Otting’s contract, appointed co-presidents to advance its turnaround and moved into public finance and lending to nonprofit organizations. However, repayment pressure on commercial real estate loans has prompted the bank to lower its earnings outlook, and it also faces the outcome of litigation over interest on escrow accounts. Its leadership strategy, business transformation and asset quality will be key indicators of its recovery and the risks facing regional banks.