Flagstar Private Bank and Wealth Management announced the launch of two new private‑banking service lines: a Family Advisory, Trusts and Estate Planning team led by Carly Doshi, and an Insurance platform headed by Irene Bowers. The move is part of Flagstar’s broader strategy to deepen its relationship‑banking model and enhance cross‑selling opportunities for its high‑net‑worth clients.
The expansion follows Flagstar’s divestiture of its mortgage‑servicing business to Mr. Cooper Group for roughly $1.3 billion in November 2024, a key step in the bank’s shift away from legacy mortgage products toward higher‑margin commercial and industrial (C&I) lending. By adding dedicated teams for estate planning and insurance, Flagstar aims to capture additional fee income, improve client retention, and create new cross‑sell channels with its existing loan and deposit book.
Flagstar’s private‑banking division is positioned to serve families, trusts, and individuals seeking comprehensive wealth‑management solutions. The new capabilities are expected to generate fee revenue that will offset the lower interest margins on its growing C&I portfolio and support the bank’s goal of becoming a full‑service relationship‑banking platform. Management has emphasized that the investment in specialized talent—such as Doshi and Bowers—will strengthen the bank’s foundation for growth across both personal and business client segments.
Financially, Flagstar reported $91.7 billion in assets, $63.2 billion in loans and $69.2 billion in deposits as of September 30, 2025. The bank’s Q3 2025 adjusted net loss of $0.07 per share and $519 million in revenue reflect the ongoing transition, but the new wealth‑planning services are projected to contribute to future earnings growth and enhance the bank’s competitive positioning in the private‑banking space.
Mark Pittsey, Head of Flagstar Private Banking & Wealth Management, said the transformation “has been about strengthening value for clients and building a stronger foundation for growth.” Rich Raffetto, SEVP and President of Commercial & Private Banking, added that the new capabilities “will help us serve the full spectrum of clients’ business and personal needs.” These comments underscore the bank’s confidence that the expanded service offering will drive long‑term profitability and client loyalty.
The launch also aligns with Flagstar’s regional operating model, which segments the market into Northeast, Southeast and West regions and focuses on sector‑specific verticals such as legal and professional services, innovation & private markets and community markets. By tailoring its wealth‑planning services to these regions and sectors, Flagstar seeks to deepen client relationships and capture fee income that is less sensitive to interest‑rate fluctuations.
Overall, the new wealth‑planning capabilities represent a strategic investment in Flagstar’s private‑banking future, reinforcing its shift from mortgage‑heavy operations to a diversified, relationship‑driven model that prioritizes high‑margin lending and fee‑based services.
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