Flagstar Bancorp, Inc. Reports Record First Quarter Earnings

Apr 24, 2001, 01:00 ET from Flagstar Bancorp, Inc.

    TROY, Mich., April 24 /PRNewswire Interactive News Release/ -- Flagstar
 Bancorp, Inc. (Nasdaq: FLGS), the holding company and parent of Flagstar Bank,
 FSB, today announced record first quarter earnings of $11.0 million, or $0.85
 per share - diluted.  These earnings constitute an increase of $7.2 million,
 or 189.5%, from net earnings of $3.8 million ($0.30 per share - diluted)
 reported for the comparable 2000 period.
     During the first quarter of 2001, the Company originated or purchased a
 first quarter record $5.4 billion in residential mortgage loans.  This
 production level constituted a 170.0% increase from the $2.0 billion
 originated in the comparable 2000 period.  This increase was primarily
 attributable to an increase in the amount of mortgage loan refinancings.
 During March, Flagstar closed a monthly corporate record $2.6 billion in
 mortgage loans.  At March 31, 2001, the Company had outstanding rate-lock
 commitments to fund $2.5 billion of mortgage loans.  This level of commitments
 is a 189% increase from the $864.5 million outstanding at December 31, 2000.
     Chairman and Chief Executive Officer, Thomas J. Hammond stated, "The
 continued growth and expansion within our retail banking operation, along with
 the recent explosive revenue growth experienced in our mortgage banking
 operation, allowed the Company to report these exceptional first quarter
 results.  During the quarter, the Company registered record breaking results
 for net earnings and mortgage loan production, while continuing to register
 double-digit percentage increases in retail deposit growth.  We believe these
 results, which were primarily driven by the recent drop in the general
 interest rate environment, will continue, at least for the short term.  These
 results will allow the Company to continue to expand its core retail banking
 initiatives within Michigan and Indiana."
     The Company's annualized return on average equity and annualized return on
 average assets was 21.59% and 0.71% respectively during the first quarter of
 2001.
     Net interest income continues to rise and increased $6.1 million, or
 31.8%, over the comparable 2000 period.  This increase was attributable to the
 $1.7 billion increase in average earning assets during the quarter ended
 March 31, 2001 versus the comparable 2000 period.
     Flagstar's deposit base and in particular its retail deposits continued to
 increase during the first quarter.  Retail deposits were $2.1 billion at
 March 31, 2001 compared with $1.9 billion at December 31, 2000 and $1.5
 billion at March 31, 2000.  The Company continued to emphasize the growth and
 expansion of the retail banking operation during the quarter.  The Company
 opened 7 new offices and now operates from 59 retail banking centers located
 across southern Michigan and Indiana.
     Flagstar's stockholders' equity now stands at $210.4 million, or 3.30% of
 total assets.  The book value of the common stock continues to rise and at
 March 31, 2001 equaled $17.46 per share.  Flagstar Bank, the Company's wholly-
 owned subsidiary reported capital ratios that categorize the Bank as an
 "adequately-capitalized" institution for regulatory purposes.  The Bank's Core
 capital ratio stood at 4.95% and the Total risk-based capital ratio stood at
 9.98% as of March 31, 2001.
     Separately, the Board of Directors of Flagstar Bancorp, Inc. announced the
 declaration of a first quarter dividend of $0.10 per share.  The dividend is
 to be paid on May 15, 2001 to shareholders of record on April 30, 2001.
     Flagstar Bancorp's wholly owned subsidiary, Flagstar Bank, FSB, which has
 $6.4 billion in total assets, is the largest independent savings institution
 headquartered in Michigan.  Flagstar currently operates 59 bank branches with
 $2.1 billion in retail deposits, including the Company's internet branch which
 is accessible at www.flagstar.com .  The Flagstar banking centers are located
 throughout southern Michigan and Indiana.  Flagstar also operates 49 loan
 origination centers located predominantly in Michigan and 15 correspondent
 lending offices located across the United States.  Flagstar Bank is one of the
 largest originators of residential mortgage loans in the United States.
     The information contained in this release is not intended as a
 solicitation to buy Flagstar Bancorp, Inc. stock and is provided for general
 information.
 
                SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA
                  (unaudited, in thousands, except share data)
 
     Summary of the Consolidated Statements of Earnings
 
                                                   At or for the three months
                                                        ended March 31,
                                                      2001            2000
 
      Interest income                              $ 112,075       $ 75,936
      Interest expense                                86,761         56,710
     Net interest income                              25,314         19,226
      Provision for losses                             5,980          1,566
     Net interest income after provision              19,334         17,660
      Loan servicing fees, net                           581          4,444
      Gain on loan sales, net                         28,028          2,183
      Gain on MSR sales, net                           1,428            320
      Other income                                     4,699          4,807
      Operating expenses                              36,665         23,452
     Earnings before federal income tax               17,405          5,962
      Provision for federal income taxes               6,387          2,195
     Net earnings                                    $11,018         $3,767
     Basic earnings per share:                         $0.92          $0.30
     Diluted earnings per share:                       $0.85          $0.30
     Dividends paid per common share                   $0.10          $0.10
     Interest rate spread                               1.70%          1.80%
     Net interest margin                                1.80%          1.94%
     Return on average assets                           0.71%          0.34%
     Return on average equity                          21.59%          8.24%
     Efficiency ratio                                  60.52%         74.66%
     Mortgage loans originated or purchased      $ 5,437,547    $ 1,962,624
     Mortgage loans sold                         $ 5,395,001    $ 1,381,278
     Equity/assets ratio (average for the period)       3.30%          4.19%
     Ratio of charge-offs to average loans              0.22%          0.16%
 
 
     Summary of the Consolidated Statements of Financial Condition:
 
                                    March 31,     December 31,      March 31,
                                      2001           2000             2000
 
     Total assets                $ 6,371,534      $ 5,763,224    $ 4,810,084
     Loans receivable, net         5,071,977        5,222,491      4,356,255
     Allowance for losses             28,000           25,000         23,000
     Mortgage servicing rights       132,300          106,425        134,736
     Retail deposits               2,121,802        1,870,731      1,456,226
     Wholesale deposits            1,526,333        1,537,234      1,210,690
     FHLB advances                 1,995,000        1,733,345      1,558,256
     Stockholders' equity            210,401          196,830        180,602
 
     Other Financial and Statistical Data:
 
     Equity/assets ratio                3.30%            3.42%          3.75%
     Tangible capital ratio             4.95%            5.31%          6.03%
     Core capital ratio                 4.95%            5.32%          6.06%
     Risk-based capital ratio           9.17%            9.53%         10.81%
     Total risk-based capital ratio     9.98%           10.30%         11.61%
 
     Book value per share            $ 17.46           $16.55        $ 14.65
     Shares outstanding               12,053           11,895         12,330
 
     Mortgage loans serviced
      for others                 $ 7,637,022      $ 6,644,482    $ 9,569,910
     Value of mortgage servicing
      rights                            1.73%            1.60%          1.41%
 
     Allowance for losses to
      problem loans                     43.2%            39.3%          49.7%
     Allowance for losses to
      total loans                       0.55%            0.48%          0.53%
     Non performing assets to
      total assets                      1.40%            1.49%          1.35%
 
     Number of bank branches              59               52             38
     Number of loan origination centers   49               42             35
     Number of correspondent offices      15               15             15
     Number of employees               2,311            1,894          1,627
 
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SOURCE Flagstar Bancorp, Inc.
    TROY, Mich., April 24 /PRNewswire Interactive News Release/ -- Flagstar
 Bancorp, Inc. (Nasdaq: FLGS), the holding company and parent of Flagstar Bank,
 FSB, today announced record first quarter earnings of $11.0 million, or $0.85
 per share - diluted.  These earnings constitute an increase of $7.2 million,
 or 189.5%, from net earnings of $3.8 million ($0.30 per share - diluted)
 reported for the comparable 2000 period.
     During the first quarter of 2001, the Company originated or purchased a
 first quarter record $5.4 billion in residential mortgage loans.  This
 production level constituted a 170.0% increase from the $2.0 billion
 originated in the comparable 2000 period.  This increase was primarily
 attributable to an increase in the amount of mortgage loan refinancings.
 During March, Flagstar closed a monthly corporate record $2.6 billion in
 mortgage loans.  At March 31, 2001, the Company had outstanding rate-lock
 commitments to fund $2.5 billion of mortgage loans.  This level of commitments
 is a 189% increase from the $864.5 million outstanding at December 31, 2000.
     Chairman and Chief Executive Officer, Thomas J. Hammond stated, "The
 continued growth and expansion within our retail banking operation, along with
 the recent explosive revenue growth experienced in our mortgage banking
 operation, allowed the Company to report these exceptional first quarter
 results.  During the quarter, the Company registered record breaking results
 for net earnings and mortgage loan production, while continuing to register
 double-digit percentage increases in retail deposit growth.  We believe these
 results, which were primarily driven by the recent drop in the general
 interest rate environment, will continue, at least for the short term.  These
 results will allow the Company to continue to expand its core retail banking
 initiatives within Michigan and Indiana."
     The Company's annualized return on average equity and annualized return on
 average assets was 21.59% and 0.71% respectively during the first quarter of
 2001.
     Net interest income continues to rise and increased $6.1 million, or
 31.8%, over the comparable 2000 period.  This increase was attributable to the
 $1.7 billion increase in average earning assets during the quarter ended
 March 31, 2001 versus the comparable 2000 period.
     Flagstar's deposit base and in particular its retail deposits continued to
 increase during the first quarter.  Retail deposits were $2.1 billion at
 March 31, 2001 compared with $1.9 billion at December 31, 2000 and $1.5
 billion at March 31, 2000.  The Company continued to emphasize the growth and
 expansion of the retail banking operation during the quarter.  The Company
 opened 7 new offices and now operates from 59 retail banking centers located
 across southern Michigan and Indiana.
     Flagstar's stockholders' equity now stands at $210.4 million, or 3.30% of
 total assets.  The book value of the common stock continues to rise and at
 March 31, 2001 equaled $17.46 per share.  Flagstar Bank, the Company's wholly-
 owned subsidiary reported capital ratios that categorize the Bank as an
 "adequately-capitalized" institution for regulatory purposes.  The Bank's Core
 capital ratio stood at 4.95% and the Total risk-based capital ratio stood at
 9.98% as of March 31, 2001.
     Separately, the Board of Directors of Flagstar Bancorp, Inc. announced the
 declaration of a first quarter dividend of $0.10 per share.  The dividend is
 to be paid on May 15, 2001 to shareholders of record on April 30, 2001.
     Flagstar Bancorp's wholly owned subsidiary, Flagstar Bank, FSB, which has
 $6.4 billion in total assets, is the largest independent savings institution
 headquartered in Michigan.  Flagstar currently operates 59 bank branches with
 $2.1 billion in retail deposits, including the Company's internet branch which
 is accessible at www.flagstar.com .  The Flagstar banking centers are located
 throughout southern Michigan and Indiana.  Flagstar also operates 49 loan
 origination centers located predominantly in Michigan and 15 correspondent
 lending offices located across the United States.  Flagstar Bank is one of the
 largest originators of residential mortgage loans in the United States.
     The information contained in this release is not intended as a
 solicitation to buy Flagstar Bancorp, Inc. stock and is provided for general
 information.
 
                SUMMARY OF SELECTED CONSOLIDATED FINANCIAL DATA
                  (unaudited, in thousands, except share data)
 
     Summary of the Consolidated Statements of Earnings
 
                                                   At or for the three months
                                                        ended March 31,
                                                      2001            2000
 
      Interest income                              $ 112,075       $ 75,936
      Interest expense                                86,761         56,710
     Net interest income                              25,314         19,226
      Provision for losses                             5,980          1,566
     Net interest income after provision              19,334         17,660
      Loan servicing fees, net                           581          4,444
      Gain on loan sales, net                         28,028          2,183
      Gain on MSR sales, net                           1,428            320
      Other income                                     4,699          4,807
      Operating expenses                              36,665         23,452
     Earnings before federal income tax               17,405          5,962
      Provision for federal income taxes               6,387          2,195
     Net earnings                                    $11,018         $3,767
     Basic earnings per share:                         $0.92          $0.30
     Diluted earnings per share:                       $0.85          $0.30
     Dividends paid per common share                   $0.10          $0.10
     Interest rate spread                               1.70%          1.80%
     Net interest margin                                1.80%          1.94%
     Return on average assets                           0.71%          0.34%
     Return on average equity                          21.59%          8.24%
     Efficiency ratio                                  60.52%         74.66%
     Mortgage loans originated or purchased      $ 5,437,547    $ 1,962,624
     Mortgage loans sold                         $ 5,395,001    $ 1,381,278
     Equity/assets ratio (average for the period)       3.30%          4.19%
     Ratio of charge-offs to average loans              0.22%          0.16%
 
 
     Summary of the Consolidated Statements of Financial Condition:
 
                                    March 31,     December 31,      March 31,
                                      2001           2000             2000
 
     Total assets                $ 6,371,534      $ 5,763,224    $ 4,810,084
     Loans receivable, net         5,071,977        5,222,491      4,356,255
     Allowance for losses             28,000           25,000         23,000
     Mortgage servicing rights       132,300          106,425        134,736
     Retail deposits               2,121,802        1,870,731      1,456,226
     Wholesale deposits            1,526,333        1,537,234      1,210,690
     FHLB advances                 1,995,000        1,733,345      1,558,256
     Stockholders' equity            210,401          196,830        180,602
 
     Other Financial and Statistical Data:
 
     Equity/assets ratio                3.30%            3.42%          3.75%
     Tangible capital ratio             4.95%            5.31%          6.03%
     Core capital ratio                 4.95%            5.32%          6.06%
     Risk-based capital ratio           9.17%            9.53%         10.81%
     Total risk-based capital ratio     9.98%           10.30%         11.61%
 
     Book value per share            $ 17.46           $16.55        $ 14.65
     Shares outstanding               12,053           11,895         12,330
 
     Mortgage loans serviced
      for others                 $ 7,637,022      $ 6,644,482    $ 9,569,910
     Value of mortgage servicing
      rights                            1.73%            1.60%          1.41%
 
     Allowance for losses to
      problem loans                     43.2%            39.3%          49.7%
     Allowance for losses to
      total loans                       0.55%            0.48%          0.53%
     Non performing assets to
      total assets                      1.40%            1.49%          1.35%
 
     Number of bank branches              59               52             38
     Number of loan origination centers   49               42             35
     Number of correspondent offices      15               15             15
     Number of employees               2,311            1,894          1,627
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X13621582
 
 SOURCE  Flagstar Bancorp, Inc.

RELATED LINKS

http://www.flagstar.com