TROY, Mich., Dec. 26, 2017 /PRNewswire/ --
- One-time, non-cash charge of approximately $80 million, or $1.38 per diluted share, in fourth quarter 2017 with no significant impact to Tier 1 capital or liquidity.
- Estimated mid-teens percentage increase in FY2018 net income and EPS based on First Call consensus estimate.
Flagstar Bancorp, Inc. (NYSE: FBC) today announced a one-time, non-cash charge to the provision for income taxes of approximately $80 million, or $1.38 per diluted share, resulting from new tax legislation that required the revaluation of its deferred tax asset at a lower corporate statutory rate. There was no significant impact to the Company's regulatory capital ratios or liquidity.
"We're optimistic that tax reform is good news for the economy," said Alessandro DiNello, President and Chief Executive Officer of Flagstar Bancorp, Inc. "We realized a modest decline in our tangible equity ratio from the new tax legislation, but expect a solid earnings benefit ahead.
"A lower corporate tax rate will provide a boost to earnings. While longer term, we expect some of the tax savings may be lost to competitive factors, we are encouraged that higher earnings, along with expected regulatory capital relief, will accelerate our capital formation."
Flagstar Bancorp, Inc. (NYSE: FBC) is a $16.9 billion savings and loan holding company headquartered in Troy, Mich. Flagstar Bank, FSB, provides commercial, small business, and consumer banking services through 99 branches in the state. It also provides home loans through a wholesale network of brokers and correspondents in all 50 states, as well as 95 retail locations in 27 states, representing the combined retail branches of Flagstar and Opes Advisors mortgage division. Flagstar is a leading national originator and servicer of mortgage loans, handling payments and record keeping for $91 billion of home loans representing 415,000 borrowers. For more information, please visit flagstar.com.
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of Flagstar Bancorp, Inc.'s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The Company's actual results could differ materially from those described in the forward-looking statements depending upon the impact of judicial and regulatory interpretations of the just-enacted tax legislation, as well as various other factors as described in periodic Flagstar reports filed with the U.S. Securities and Exchange Commission, which are available on the Company's website (flagstar.com) and on the Securities and Exchange Commission's website (sec.gov). Other than as required under United States securities laws, Flagstar Bancorp does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.
For further information
ANALYSTS: David Urban, Senior Vice President & Director, Investor Relations, (248) 312-5970
MEDIA: Susan Bergesen, Corporate Communications, (248) 312-6237
SOURCE Flagstar Bancorp, Inc.