BUZZ-Flagstar's rocky 2024 leads to $3.6 bln loss in market capitalization

** Shares of Flagstar Financial FLG.N, formerly known as New York Community Bancorp, fell over 70% YTD

** Bank poised to end one of the most tumultuous periods in its 165-year history, having lost nearly $3.6 bln in market value

** The frenzied sell-off began with FLG reporting a surprise quarterly loss due to provisions tied to commercial real estate loans and slashing of its dividend in January

** More than a month later, the bank disclosed "material weakness" in some internal controls and replaced its management team

** FLG's troubles sparked wider concerns about regional banks, threatening to upset the recovery of an industry that had been battered by another crisis in 2023

** A $1 bln investment from investors, including former U.S. Treasury Secretary Steven Mnuchin's Liberty Strategic Capital, helped calm FLG investors

** The bank also sold some non-core assets to boost capital, but delayed its targeted timeline for a return to profitability in October, highlighting the challenges of its turnaround

** Stock is the worst performer on the S&P Composite 1500 banks index .SPCOMBNKS, which has gained ~17% YTD

(Reporting by Niket Nishant in Bengaluru)

((Niket.Nishant@thomsonreuters.com))