Flagstar's shareholders approve plan to dissolve holding company

October 17, 2025 4:51 PM

In this week's banking news roundup: Flagstar's shareholders approved a plan to merge its holding company into the bank; Huntington tapped a new chief auditor, along with two new business leaders; First Foundation hired a new chief credit officer; and more.

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Flagstar shareholders approve plan to dissolve holding company

Flagstar Bank will move forward with merging its holding company into the bank, following approval from shareholders at a special meeting earlier this week.

The Long Island-based bank, which already received regulatory approval, expects to finalize the reorganization by the end of this month, it said in a press release. By eliminating the holding company, Flagstar Financial, the bank expects to reduce its annual expenses by about $15 million and simplify its regulatory structure. The stock will continue to trade as "FLG."

"This milestone reflects the progress we're making to simplify our structure and build a stronger foundation for the future, allowing us to move forward with clarity and focus as we continue growing a bank that delivers for our customers, communities, and shareholders," Chairman and CEO Joseph Otting said in the release. –Allissa Kline

Bloomberg

Huntington promotes chief auditor, business leaders

The Columbus, Ohio-based bank said Tuesday that it had tapped a new chief auditor, along with two new business leaders.

Huntington said it had promoted David Ortiz from deputy chief risk officer to the chief auditor at the bank. Ortiz, who joined the company in 2022, led "transformational initiatives designed to reimagine" the banks' risk program. He will take over from Michael Van Treese, who will become anti-money-laundering chief administrative officer. In his new role, Ortiz will report to CEO Steve Steinour.

The company also said Tuesday that it has promoted Sean Richardson to be president of Huntington Distribution Finance. Richardson has been serving as the Northeast Ohio regional president since 2016, and will take on the torch from Jay Deverell, who is retiring. In his new role, Richardson will oversee floor plan financing solutions to manufacturers, distributors and dealers in the U.S., Canada, New Zealand and Australia.

Huntington said that Jay Turakhia will become regional president for Northeast Ohio as Richardson moves up. –Catherine Leffert

First Foundation picks new chief credit officer

First Foundation said it had hired Dean Glassberg as its new chief credit officer, effective Tuesday. The bank has been working to revamp its balance sheet after floundering for several years amid the rapid rise of interest rates.

Last summer, the company landed a $228 million capital infusion to get its operations back on track. Since then, First Foundation has also instituted Thomas Shafer as its new CEO last November.

The company's previous chief credit officer, Christopher Naghibi, resigned in June.

Glassberg said in a prepared statement that he will focus on existing strengths and credit rigor during "a pivotal moment" for the company.

"His proven track record of transformation in credit operations, regulatory acumen, and team leadership make him ideally suited to elevate our credit discipline as we grow," CEO Shafer said in a prepared statement. —Catherine Leffert

Provident Bank appoints new EVP, retail banking director

New Jersey-based Provident Bank announced the appointment of Renee Altomonto as executive vice president, retail banking director this week. She will report to Vito Giannola, executive vice president, chief banking officer, and be responsible for the branch network and driving the overall success of the retail bank.

Altomonto's 30-plus year career includes leadership roles at TD Bank. "My objective is to leverage my experience in leading high-performing teams and developing customer-centric strategies to enhance the bank's retail operations, drive profitable growth, and further the bank's commitment to delivering an exceptional experience for both customers and employees," Altomonte said in a press release.

Provident Bank is the oldest community-focused financial institution based in New Jersey, with $24.22 billion in assets and more than 140 branches across the state and parts of New York and Pennsylvania. —Traci Parks

TD Bank taps new US general counsel, CFO

About one year after taking historic fines for anti-money-laundering blunders, TD Bank's U.S. division said Brian Callanan would be its new general counsel, and Andre Ramos would become chief financial officer, effective Dec. 1.

Callanan, who previously served as general counsel of the U.S. Department of Treasury, will lead the legal and regulatory business for the Canadian bank's stateside unit. TD agreed to pay $3.1 billion in fines and pleaded guilty to criminal charges related to its anti-money-laundering controls last year, and vowed to overhaul its U.S. compliance program and keep its assets under $434 billion.

Ramos will join TD as the U.S. CFO from JPMorganChase, where he spent 11 years in roles like consumer banking CFO. He also held leadership roles in finance at American Express, HSBC and Citi. —Catherine Leffert

Bank First gets approval to acquire Centre 1

Bank First Corporation received regulatory approvals to complete its planned merger with Centre 1 Bancorp, the holding company of First National Bank and Trust Company. The transaction between the two Wisconsin-based firms will close on Jan. 1, 2026, subject to approval by Centre 1's shareholders.

"This merger brings together two institutions with aligned values and complementary strengths, positioning us to better serve our customers with expanded resources, broader capabilities, and a continued focus on relationship banking," said Bank First Chairman and CEO Mike Molepske in a Thursday press release.

Following the close of the transaction, First National Bank and Trust will become a division of Bank First until the system conversion, expected to take place in the second quarter of 2026. At that time, all First National Bank and Trust offices will fully transition to the Bank First name, and customers will be transitioned to the Bank First system and digital banking platform. —Traci Parks

Citi hires two London bankers to advise on private equity exits

Citi has hired two investment bankers in London to build out its team advising private equity firms and other companies selling assets.

The Wall Street bank appointed Edward Joudrey as co-head of U.K. and Europe sell-side M&A, alongside Matias Brechner, according to a staff memo seen by Bloomberg News. Joudrey held a similar role at Bank of America before joining J. Safra Sarasin last year to build out the bank's advisory arm. He will report to Citi's European M&A heads Barry Weir and Robin Rousseau.

In the memo, Citi also said it hired Matt Merriman from Deutsche Bank who will join as a director, reporting to Brechner and Joudrey. A spokesperson for Citi declined to comment.

Buyout funds have come under increasing pressure to exit assets after struggling to return capital to investors amid higher borrowing costs. The slowdown in disposals has also led to a slump in fundraising for the firms. —Leonard Kehnscherper, Bloomberg News