- change ups
GR native named to head Flagstar Bank
Michael J. Tierney takes over as CEO Nov. 1; banks becomes profitable.
Michael J. Tierney, a Grand Rapids native with more than 33 years of banking experience throughout the Midwest, will take over as CEO of both Flagstar Bank and its holding company, Flagstar Bancorp Inc. of Troy, on Nov. 1. He has served as president of both since Oct. 1.
Tierney, who had been executive vice president and managing director of personal financial services at Flagstar, will replace Joseph P. Campanelli, whose resignation is effective Oct. 31.
“I believe that we have turned the corner in addressing many of Flagstar’s legacy issues and have built a solid foundation for continued growth and success. I am confident that under Mike’s leadership, Flagstar can continue building on its recent momentum and further build its reputation as a top mortgage lender and a strong Midwest community bank,” said Campanelli.
For his part, Tierney said Campanelli “has done an exceptional job of transforming Flagstar and returning it to profitability.” Campanelli was named to lead a new management team at Flagstar in 2009, after having been CEO of Sovereign Bancorp.
In late October Flagstar reported third quarter net income of $79.7 million, and noted it was the second consecutive quarter of profitability. It also reported that day that it had entered into a consent order with the Office of the Comptroller of the Currency, reflecting matters identified by the OCC during supervisory examinations of Flagstar in the fourth quarter of 2011 and first quarter of 2012, and replaces a previous enforcement action by the Office of Thrift Supervision.
The second quarter of 2012 was Flagstar’s first profitable quarter since 2008.
Flagstar had had banks in Indiana and Georgia but divested itself of them in 2011 to concentrate on its business in Michigan.
On Oct. 10, Flagstar Bancorp common stock underwent a reverse split on a one-for-10 basis, reducing the shares of common stock from 700 million to 70 million. The stock price was $1.19 before the reverse split; the following day it was trading for $12.80. The price at market close Oct. 25 was $13.10.
According to Flagstar, as of June 30, it had $14.4 billion in total assets and was the largest publicly held savings bank headquartered in Michigan. At that time it had 111 branches in Michigan, 30 home loan centers in 13 states and four commercial banking offices in Massachusetts, Connecticut and Rhode Island.
In September, Flagstar announced that Edward Ryan had joined as a senior vice president of business banking. Ryan, who is based in Grand Rapids, had previously been with Macatawa Bank but had spent 29 of his 34-year career with Old Kent Bank, now Fifth Third.
Tierney grew up in Grand Rapids, attending Immaculate Heart of Mary elementary school and Grand Rapids Catholic Central. Tierney began his banking career at Comerica Bank, where he spent 28 years in management. Prior to joining Flagstar in February 2011, he was president/CEO of Bluewater Bank Group, an investment group formed to purchase Michigan banks. He also has been an executive at Peoples State Bank and Chase.
Flagstar is tentatively planning to open about 10 new branches in West Michigan over the next five years, according to a spokesperson in Troy.
Flagstar has had branches in two Meijer stores in Grand Rapids, but Huntington Bank and Meijer announced earlier this year that all 200 Meijer bank branches in Michigan will become Huntington this year as part of a 10-year agreement.