Flagstar Bancorp Reports Fourth Quarter 2019 Net Income of $58 Million, or $1.00 per Diluted Share
TROY, Mich., Jan. 28, 2020 /PRNewswire/ --
Key Highlights - Fourth Quarter 2019
- Net interest income increased $6 million from last quarter, led by higher earning assets
- Mortgage revenues totaled $98 million, driven by margin expansion of 3 basis points
- Total serviced accounts increased 10 percent from last quarter to nearly 1.1 million loans
- Return on equity was 12.7 percent for the quarter, compared to adjusted full year return on equity of 11.7%
Flagstar Bancorp, Inc. (NYSE: FBC), the holding company for Flagstar Bank, FSB, today reported fourth quarter 2019 net income of $58 million, or $1.00 per diluted share, compared to third quarter 2019 net income of $63 million, or $1.11 per diluted share and fourth quarter 2018 net income of $54 million, or $0.93 per diluted share. On an adjusted basis, Flagstar reported net income of $42 million, or $0.72 per diluted share, for the fourth quarter 2018.
"We are very pleased to have earned net income of $1.00 per diluted share and a return on equity of 12.7 percent," said Alessandro DiNello, president and chief executive officer of Flagstar Bancorp, Inc. "I am particularly pleased with the consistency of our earnings and our success in taking much of the volatility associated with the mortgage business out of the equation.
"Both our banking and servicing businesses produced solid results for the quarter. Net interest income grew $6 million, or 4 percent, on an increase in earning assets of $1.7 billion, or 9 percent, compared to the third quarter 2019. This strong growth in earning assets reflected higher loans held-for-sale and warehouse loans as we continued to be opportunistic in a mortgage market that remained persistently strong. We ended the quarter servicing or subservicing 1.1 million loans -- a number that validates our investment in a high-quality servicing platform, and demonstrates the strong relationships we have fostered with our subservicing partners.
"Our mortgage team had another strong quarter, with mortgage revenues of $98 million, as our gain on sale margin expanded to 123 basis points resulting from optimizing production by focusing on profitable business versus volume.
"Overall, 2019 was a year where the results clearly demonstrated the earnings power of our company as our banking, mortgage and servicing businesses all delivered earnings growth that exceeded the prior year. For 2019, our net income per diluted share was $3.80 and our adjusted net income per diluted share was $3.46, up 15 percent from 2018. Our shareholders were rewarded for this performance with a 45 percent increase in our share price for the year, which was the best performance in 2019 of any bank with $10 billion to $100 billion in assets. That's on top of our announcement early in the year that we were initiating a quarterly dividend of $0.04 per share, which just today we raised to $0.05. This proves our commitment to driving long-term performance and generating significant value for our shareholders. With the momentum of a strong year behind us and the power of a diversified franchise carrying us forward, we believe we are well positioned for continued success in 2020."
Income Statement Highlights |
|||||||||||||||
Three Months Ended |
|||||||||||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||||||
(Dollars in millions) |
|||||||||||||||
Net interest income |
$ |
152 |
$ |
146 |
$ |
138 |
$ |
126 |
$ |
152 |
|||||
Provision (benefit) for loan losses |
— |
1 |
17 |
— |
(5) |
||||||||||
Noninterest income |
162 |
171 |
168 |
109 |
98 |
||||||||||
Noninterest expense |
245 |
238 |
214 |
191 |
189 |
||||||||||
Income before income taxes |
69 |
78 |
75 |
44 |
66 |
||||||||||
Provision for income taxes |
11 |
15 |
14 |
8 |
12 |
||||||||||
Net income |
$ |
58 |
$ |
63 |
$ |
61 |
$ |
36 |
$ |
54 |
|||||
Income per share: |
|||||||||||||||
Basic |
$ |
1.01 |
$ |
1.12 |
$ |
1.08 |
$ |
0.64 |
$ |
0.94 |
|||||
Diluted |
$ |
1.00 |
$ |
1.11 |
$ |
1.06 |
$ |
0.63 |
$ |
0.93 |
|||||
Adjusted Income Statement Highlights (Non-GAAP) (1) |
|||||||||||||||
Three Months Ended |
|||||||||||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||||||
(Dollars in millions) |
|||||||||||||||
Net interest income |
$ |
152 |
$ |
146 |
$ |
138 |
$ |
126 |
$ |
123 |
|||||
Provision (benefit) for loan losses |
— |
1 |
17 |
— |
(5) |
||||||||||
Noninterest income |
162 |
171 |
143 |
109 |
98 |
||||||||||
Noninterest expense |
245 |
238 |
214 |
190 |
175 |
||||||||||
Income before income taxes |
69 |
78 |
50 |
45 |
51 |
||||||||||
Provision for income taxes |
11 |
15 |
9 |
8 |
9 |
||||||||||
Net income |
$ |
58 |
$ |
63 |
$ |
41 |
$ |
37 |
$ |
42 |
|||||
Income per share: |
|||||||||||||||
Basic |
$ |
1.01 |
$ |
1.12 |
$ |
0.72 |
$ |
0.65 |
$ |
0.73 |
|||||
Diluted |
$ |
1.00 |
$ |
1.11 |
$ |
0.71 |
$ |
0.64 |
$ |
0.72 |
|||||
(1) See Non-GAAP Reconciliation for further information. |
|||||||||||||||
Key Ratios |
||||||||||
Three Months Ended |
||||||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
||||||
Net interest margin |
2.91 |
% |
3.05 |
% |
3.08 |
% |
3.09 |
% |
3.70 |
% |
Adjusted net interest margin (1) |
2.91 |
% |
3.05 |
% |
3.08 |
% |
3.09 |
% |
2.99 |
% |
Return on average assets |
1.0 |
% |
1.2 |
% |
1.2 |
% |
0.8 |
% |
1.2 |
% |
Return on average common equity |
12.7 |
% |
14.7 |
% |
14.6 |
% |
9.2 |
% |
14.3 |
% |
Efficiency ratio |
78.2 |
% |
75.2 |
% |
69.8 |
% |
81.3 |
% |
75.7 |
% |
HFI loan-to-deposit ratio |
76.5 |
% |
74.2 |
% |
75.0 |
% |
71.0 |
% |
74.7 |
% |
Adjusted HFI loan-to-deposit ratio (2) |
84.6 |
% |
82.0 |
% |
80.6 |
% |
77.0 |
% |
77.2 |
% |
(1) |
The three months ended December 31, 2018, excludes $29 million of hedging gains reclassified from AOCI to net interest income in conjunction with the payment of long-term FHLB advances. See Non-GAAP Reconciliation for further information. |
(2) |
Excludes warehouse loans and custodial deposits. See Non-GAAP Reconciliation for further information. |
Average Balance Sheet Highlights |
|||||||||||||||||||
Three Months Ended |
% Change |
||||||||||||||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
Seq |
Yr/Yr |
|||||||||||||
(Dollars in millions) |
|||||||||||||||||||
Average interest-earning assets |
$ |
20,708 |
$ |
18,997 |
$ |
17,759 |
$ |
16,294 |
$ |
16,391 |
9 |
% |
26 |
% |
|||||
Average loans held-for-sale (LHFS) |
5,199 |
3,786 |
3,539 |
3,266 |
3,991 |
37 |
% |
30 |
% |
||||||||||
Average loans held-for-investment (LHFI) |
12,168 |
11,743 |
10,613 |
9,164 |
8,916 |
4 |
% |
36 |
% |
||||||||||
Average total deposits |
15,904 |
15,817 |
14,159 |
12,906 |
11,942 |
1 |
% |
33 |
% |
||||||||||
Net Interest Income
Net interest income increased $6 million, or 4 percent, to $152 million for the fourth quarter 2019 as compared to the third quarter 2019. The results reflect a 9 percent increase in average earning assets, fueled by growth in loans held-for-sale, warehouse and commercial real estate loans. Net interest margin decreased 14 basis points, to 2.91 percent for the fourth quarter 2019 as compared to the third quarter 2019, as a result of the impact of rate cuts and balance sheet mix.
Loans held-for-investment averaged $12.2 billion for the fourth quarter 2019, increasing $425 million from the prior quarter. Average warehouse loans increased $239 million, or 10 percent, benefiting from the overall mortgage market. The Company also had solid growth in our commercial real estate and non-auto indirect portfolios as average balances increased $169 million, or 7 percent, and $84 million, or 18 percent, respectively.
Average total deposits were $15.9 billion in the fourth quarter 2019, increasing $87 million, or 1 percent, from the third quarter 2019. The increase primarily reflects $222 million higher custodial deposits driven by an increase in loans serviced, more than offsetting the $138 million decrease in government and wholesale deposits resulting from seasonal decreases and maturities.
Provision for Loan Losses
The Company had no provision for loan losses for the fourth quarter 2019, as compared to $1 million for the third quarter 2019, reflecting strong asset quality, low delinquencies and no nonperforming commercial loans.
Noninterest Income
Noninterest income decreased $9 million, or 5 percent, to $162 million in the fourth quarter 2019, as compared to $171 million for the third quarter 2019, primarily due to lower mortgage revenues.
Fourth quarter 2019 net gain on loan sales decreased $9 million, or 8 percent, to $101 million, versus $110 million in the third quarter 2019. The net gain on loan sale margin expanded 3 basis points to 1.23 percent for the fourth quarter 2019, as compared to 1.20 percent for the third quarter 2019. Fallout-adjusted locks decreased 11 percent to $8.2 billion, reflecting seasonal factors which were partially offset by the continued strength of the mortgage environment due to lower rates.
Lower rates drove continued refinance activity, creating a net loss on mortgage servicing rights (including hedging) of $3 million for the fourth quarter 2019, compared to a $2 million net loss for the third quarter 2019.
Mortgage Metrics |
|||||||||||||||||||
As of/Three months ended |
Change (% / bps) |
||||||||||||||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
Seq |
Yr/Yr |
|||||||||||||
(Dollars in millions) |
|||||||||||||||||||
Mortgage rate lock commitments (fallout-adjusted) (1) |
$ |
8,179 |
$ |
9,197 |
$ |
8,344 |
$ |
6,602 |
$ |
5,284 |
(11) |
% |
55 |
% |
|||||
Mortgage loans closed |
$ |
9,303 |
$ |
9,262 |
$ |
8,642 |
$ |
5,513 |
$ |
6,340 |
0.44 |
% |
47 |
% |
|||||
Net margin on mortgage rate lock commitments |
1.23 |
% |
1.20 |
% |
0.89 |
% |
0.72 |
% |
0.60 |
% |
3 |
63 |
|||||||
Net gain on loan sales |
$ |
101 |
$ |
110 |
$ |
75 |
$ |
49 |
$ |
34 |
(8) |
% |
N/M |
||||||
Net return on mortgage servicing rights (MSR) |
$ |
(3) |
$ |
(2) |
$ |
5 |
$ |
6 |
$ |
10 |
50 |
% |
N/M |
||||||
Gain on loan sales + net return on the MSR |
$ |
98 |
$ |
108 |
$ |
80 |
$ |
55 |
$ |
44 |
(9) |
% |
N/M |
||||||
Loans serviced (number of accounts - 000's) (3) |
1,091 |
994 |
983 |
962 |
851 |
10 |
% |
28 |
% |
||||||||||
Capitalized value of MSRs |
1.21 |
% |
1.14 |
% |
1.23 |
% |
1.27 |
% |
1.35 |
% |
7 |
(14) |
|||||||
N/M - Not meaningful |
||||||||||||||||||||
(1) |
Fallout-adjusted mortgage rate lock commitments are adjusted by a percentage of mortgage loans in the pipeline that are not expected to close based on previous historical experience and the level of interest rates. |
|||||||||||||||||||
(2) |
Based on net gain on loan sales (excludes net gain on loan sales of $2 million from loans transferred from LHFI during both the three months ended March 31, 2019 and December 31, 2018) to fallout-adjusted mortgage rate lock commitments. |
|||||||||||||||||||
(3) |
Includes loans serviced for Flagstar's own loan portfolio, serviced for others, and subserviced for others. |
|||||||||||||||||||
Noninterest Expense
Noninterest expense increased to $245 million for the fourth quarter 2019, as compared to $238 million for the third quarter 2019, primarily reflecting $5 million of higher balance sheet clean-up and discretionary expenses, such as fixed asset write downs, costs related to the secondary offering and a donation to the Flagstar Foundation.
The Company's efficiency ratio was 78 percent for the fourth quarter 2019, as compared to 75 percent for the third quarter 2019.
Income Taxes
The fourth quarter 2019 provision for income taxes totaled $11 million, compared to $15 million for the third quarter 2019. The effective tax rate was 16.7 percent for the fourth quarter 2019, compared to 18.4 percent for the third quarter 2019. During 2019 the Company fully utilized its non-limited federal net operating losses and now expects to utilize most of the state net operating losses. Accordingly, the Company continues to make investments in areas which are expected to provide future tax benefits. The Company expects the effective tax rate in 2020 to be consistent with fourth quarter 2019 levels as benefits from these investments are recognized and expects to continue to make, and in certain cases increase, investments in a tax efficient manner. The Company will also continue to monitor its business structure and maintain appropriate tax planning measures to reduce the tax liability from on-going operations.
Asset Quality
Credit Quality Ratios |
||||||||||||||||||
As of/Three Months Ended |
Change (% / bps) |
|||||||||||||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
Seq |
Yr/Yr |
||||||||||||
(Dollars in millions) |
||||||||||||||||||
Allowance for loan loss to LHFI |
0.9 |
% |
0.9 |
% |
0.9 |
% |
1.3 |
% |
1.4 |
% |
0 |
(50) |
||||||
Charge-offs, net of recoveries |
$ |
3 |
$ |
1 |
$ |
34 |
$ |
1 |
$ |
1 |
N/M |
N/M |
||||||
Total nonperforming LHFI and TDRs |
$ |
26 |
$ |
26 |
$ |
63 |
$ |
24 |
$ |
22 |
0 |
18 |
% |
|||||
Net charge-offs to LHFI ratio (annualized) |
0.10 |
% |
0.02 |
% |
1.29 |
% |
0.05 |
% |
0.04 |
% |
8 |
6 |
||||||
Ratio of nonperforming LHFI and TDRs to LHFI |
0.21 |
% |
0.21 |
% |
0.54 |
% |
0.24 |
% |
0.24 |
% |
0 |
(3) |
||||||
N/M - Not meaningful |
||||||||||||||||||
The allowance for loan losses was $107 million and covered 0.9 percent of loans held-for-investment at December 31, 2019, consistent with our coverage ratio as of September 30, 2019.
Net charge-offs in the fourth quarter 2019 were $3 million, or 10 basis points of LHFI, compared to $1 million, or 2 basis points in the prior quarter. Delinquencies in these portfolios remain low and consistent with the prior quarter.
Nonperforming loans were $26 million and our ratio of nonperforming loans to loans held-for-investment was 0.21 percent at December 31, 2019, flat compared to September 30, 2019. At December 31, 2019, early stage loan delinquencies totaled $14 million, or 0.12 percent, of total loans, compared to $12 million, or 0.10 percent, at September 30, 2019.
Capital
Capital Ratios (Bancorp) |
Change (% / bps) |
||||||||||||||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
Seq |
Yr/Yr |
|||||||||||||
Tier 1 leverage (to adj. avg. total assets) |
7.57 |
% |
7.98 |
% |
7.86 |
% |
8.37 |
% |
8.29 |
% |
(41) |
(72) |
|||||||
Tier 1 common equity (to RWA) |
9.32 |
% |
9.25 |
% |
9.08 |
% |
9.69 |
% |
10.54 |
% |
7 |
N/M |
|||||||
Tier 1 capital (to RWA) |
10.83 |
% |
10.81 |
% |
10.73 |
% |
11.51 |
% |
12.54 |
% |
2 |
N/M |
|||||||
Total capital (to RWA) |
11.52 |
% |
11.54 |
% |
11.51 |
% |
12.49 |
% |
13.63 |
% |
(2) |
N/M |
|||||||
Tangible common equity to asset ratio (1) |
6.95 |
% |
7.08 |
% |
7.31 |
% |
7.16 |
% |
7.45 |
% |
(13) |
(50) |
|||||||
Tangible book value per share (1) |
$ |
28.57 |
$ |
27.62 |
$ |
26.16 |
$ |
24.65 |
$ |
23.90 |
3 |
% |
20 |
% |
|||||
N/M - Not meaningful |
|||||||||||||||||||
(1) See Non-GAAP Reconciliation for further information. |
|||||||||||||||||||
The Company maintained a solid capital position with regulatory ratios well above current regulatory quantitative guidelines for "well capitalized" institutions. At December 31, 2019, the Company had a total risk-based capital ratio of 11.52 percent, as compared to 11.54 percent at September 30, 2019.
Under the terms of the previously approved, and now in effect, regulatory capital requirements, the Company's Tier 1 leverage ratio would have increased approximately 43 basis points and risk-based capital ratios would have increased by approximately 20 to 30 basis points at December 31, 2019 (pro forma basis).
Earnings Conference Call
As previously announced, the Company's fourth quarter 2019 earnings call will be held Tuesday, January 28, 2020 at 11 a.m. (ET).
To join the call, please dial (800) 353-6461 toll free or (334) 323-0501 and use passcode 2146234. Please call at least 10 minutes before the conference is scheduled to begin. A replay will be available for five business days by calling (888) 203-1112 toll free or (719) 457-0820 and using passcode 2146234.
The conference call will also be available as a live audiocast on the Investor Relations section of flagstar.com, where it will be archived and available for replay and download. The slide presentation accompanying the conference call will be posted on the site.
About Flagstar
Flagstar Bancorp, Inc. (NYSE: FBC) is a $23.3 billion savings and loan holding company headquartered in Troy, Mich. Flagstar Bank, FSB, provides commercial, small business, and consumer banking services through 160 branches in Michigan, Indiana, California, Wisconsin and Ohio. It also provides home loans through a wholesale network of brokers and correspondents in all 50 states, as well as 88 retail locations in 27 states, representing the combined retail branches of Flagstar and its Opes Advisors mortgage division. Flagstar is a leading national originator and servicer of mortgage and other consumer loans, handling payments and record keeping for $228 billion of loans representing nearly 1.1 million borrowers. For more information, please visit flagstar.com.
Use of Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this news release includes non-GAAP financial measures, such as tangible book value per share, tangible common equity to assets ratio, return on average tangible equity, adjusted return on average tangible equity, adjusted return on average assets, adjusted HFI loan-to-deposit ratio, adjusted net interest income, adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted provision for income taxes, adjusted net income, adjusted basic and diluted earnings per share, adjusted net interest margin, and adjusted efficiency ratio. The Company believes these non-GAAP financial measures provide additional information that is useful to investors in helping to understand the capital requirements Flagstar will face in the future and underlying performance and trends of Flagstar.
Non-GAAP financial measures have inherent limitations. Readers should be aware of these limitations and should be cautious with respect to the use of such measures. To compensate for these limitations, we use non-GAAP measures as comparative tools, together with GAAP measures, to assist in the evaluation of our operating performance or financial condition. Also, we ensure that these measures are calculated using the appropriate GAAP or regulatory components in their entirety and that they are computed in a manner intended to facilitate consistent period-to-period comparisons. Flagstar's method of calculating these non-GAAP measures may differ from methods used by other companies. These non-GAAP measures should not be considered in isolation or as a substitute for those financial measures prepared in accordance with GAAP or in-effect regulatory requirements.
Where non-GAAP financial measures are used, the most directly comparable GAAP or regulatory financial measure, as well as the reconciliation to the most directly comparable GAAP or regulatory financial measure, can be found in this news release. Additional discussion of the use of non-GAAP measures can also be found in conference call slides, the Form 8-K Current Report related to this news release and in periodic Flagstar reports filed with the U.S. Securities and Exchange Commission. These documents can all be found on the Company's website at flagstar.com.
Forward-Looking Statements
This earnings release 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 various 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.
Flagstar Bancorp, Inc. |
|||||||||
December 31, |
September 30, |
December 31, |
|||||||
Assets |
|||||||||
Cash |
$ |
220 |
$ |
234 |
$ |
260 |
|||
Interest-earning deposits |
206 |
119 |
148 |
||||||
Total cash and cash equivalents |
426 |
353 |
408 |
||||||
Investment securities available-for-sale |
2,116 |
1,697 |
2,142 |
||||||
Investment securities held-to-maturity |
598 |
635 |
703 |
||||||
Loans held-for-sale |
5,258 |
4,196 |
3,869 |
||||||
Loans held-for-investment |
12,129 |
12,548 |
9,088 |
||||||
Loans with government guarantees |
736 |
607 |
392 |
||||||
Less: allowance for loan losses |
(107) |
(110) |
(128) |
||||||
Total loans held-for-investment and loans with government guarantees, net |
12,758 |
13,045 |
9,352 |
||||||
Mortgage servicing rights |
291 |
285 |
290 |
||||||
Federal Home Loan Bank stock |
303 |
303 |
303 |
||||||
Premises and equipment, net |
416 |
417 |
390 |
||||||
Goodwill and intangible assets |
170 |
174 |
190 |
||||||
Other assets |
930 |
943 |
884 |
||||||
Total assets |
$ |
23,266 |
$ |
22,048 |
$ |
18,531 |
|||
Liabilities and Stockholders' Equity |
|||||||||
Noninterest bearing deposits |
$ |
5,467 |
$ |
5,649 |
$ |
2,989 |
|||
Interest bearing deposits |
9,679 |
10,096 |
9,391 |
||||||
Total deposits |
15,146 |
15,745 |
12,380 |
||||||
Short-term Federal Home Loan Bank advances and other |
4,165 |
2,329 |
3,244 |
||||||
Long-term Federal Home Loan Bank advances |
650 |
650 |
150 |
||||||
Other long-term debt |
496 |
496 |
495 |
||||||
Other liabilities |
1,021 |
1,094 |
692 |
||||||
Total liabilities |
21,478 |
20,314 |
16,961 |
||||||
Stockholders' Equity |
|||||||||
Common stock |
1 |
1 |
1 |
||||||
Additional paid in capital |
1,483 |
1,481 |
1,522 |
||||||
Accumulated other comprehensive income (loss) |
1 |
5 |
(47) |
||||||
Retained earnings |
303 |
247 |
94 |
||||||
Total stockholders' equity |
1,788 |
1,734 |
1,570 |
||||||
Total liabilities and stockholders' equity |
$ |
23,266 |
$ |
22,048 |
$ |
18,531 |
|||
Flagstar Bancorp, Inc. Condensed Consolidated Statements of Operations (Dollars in millions, except per share data) (Unaudited) |
|||||||||||||||||||||||||
Fourth Quarter 2019 Compared to: |
|||||||||||||||||||||||||
Three Months Ended |
Third Quarter 2019 |
Fourth Quarter 2018 |
|||||||||||||||||||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
Amount |
Percent |
Amount |
Percent |
|||||||||||||||||
Interest Income |
|||||||||||||||||||||||||
Total interest income |
$ |
213 |
$ |
203 |
$ |
198 |
$ |
180 |
$ |
181 |
$ |
10 |
5 |
% |
$ |
32 |
18 |
% |
|||||||
Total interest expense |
61 |
57 |
60 |
54 |
29 |
4 |
7 |
% |
32 |
N/M |
|||||||||||||||
Net interest income |
152 |
146 |
138 |
126 |
152 |
6 |
4 |
% |
— |
— |
% |
||||||||||||||
Provision (benefit) for loan losses |
— |
1 |
17 |
— |
(5) |
(1) |
N/M |
5 |
N/M |
||||||||||||||||
Net interest income after provision (benefit) for loan losses |
152 |
145 |
121 |
126 |
157 |
7 |
5 |
% |
(5) |
(3) |
% |
||||||||||||||
Noninterest Income |
|||||||||||||||||||||||||
Net gain on loan sales |
101 |
110 |
75 |
49 |
34 |
(9) |
(8) |
% |
67 |
N/M |
|||||||||||||||
Loan fees and charges |
30 |
29 |
24 |
17 |
20 |
1 |
3 |
% |
10 |
50 |
% |
||||||||||||||
Net return on the mortgage servicing rights |
(3) |
(2) |
5 |
6 |
10 |
(1) |
50 |
% |
(13) |
N/M |
|||||||||||||||
Loan administration income |
8 |
5 |
6 |
11 |
8 |
3 |
60 |
% |
— |
— |
% |
||||||||||||||
Deposit fees and charges |
10 |
10 |
10 |
8 |
6 |
— |
— |
% |
4 |
67 |
% |
||||||||||||||
Other noninterest income |
16 |
19 |
48 |
18 |
20 |
(3) |
(16) |
% |
(4) |
(20) |
% |
||||||||||||||
Total noninterest income |
162 |
171 |
168 |
109 |
98 |
(9) |
(5) |
% |
64 |
65 |
% |
||||||||||||||
Noninterest Expense |
|||||||||||||||||||||||||
Compensation and benefits |
102 |
98 |
90 |
87 |
82 |
4 |
4 |
% |
20 |
24 |
% |
||||||||||||||
Occupancy and equipment |
43 |
40 |
40 |
38 |
36 |
3 |
8 |
% |
7 |
19 |
% |
||||||||||||||
Commissions |
35 |
38 |
25 |
13 |
16 |
(3) |
(8) |
% |
19 |
N/M |
|||||||||||||||
Loan processing expense |
20 |
22 |
21 |
17 |
16 |
(2) |
(9) |
% |
4 |
25 |
% |
||||||||||||||
Legal and professional expense |
9 |
6 |
6 |
6 |
9 |
3 |
50 |
% |
— |
— |
% |
||||||||||||||
Federal insurance premiums |
6 |
5 |
5 |
4 |
4 |
1 |
20 |
% |
2 |
50 |
% |
||||||||||||||
Intangible asset amortization |
4 |
3 |
4 |
4 |
3 |
1 |
33 |
% |
1 |
N/M |
|||||||||||||||
Other noninterest expense |
26 |
26 |
23 |
22 |
23 |
— |
— |
% |
3 |
13 |
% |
||||||||||||||
Total noninterest expense |
245 |
238 |
214 |
191 |
189 |
7 |
3 |
% |
56 |
30 |
% |
||||||||||||||
Income before income taxes |
69 |
78 |
75 |
44 |
66 |
(9) |
(12) |
% |
3 |
5 |
% |
||||||||||||||
Provision for income taxes |
11 |
15 |
14 |
8 |
12 |
(4) |
(27) |
% |
(1) |
(8) |
% |
||||||||||||||
Net income |
$ |
58 |
$ |
63 |
$ |
61 |
$ |
36 |
$ |
54 |
$ |
(5) |
(8) |
% |
$ |
4 |
7 |
% |
|||||||
Income per share |
|||||||||||||||||||||||||
Basic |
$ |
1.01 |
$ |
1.12 |
$ |
1.08 |
$ |
0.64 |
$ |
0.94 |
$ |
(0.11) |
(10) |
% |
$ |
0.07 |
7 |
% |
|||||||
Diluted |
$ |
1.00 |
$ |
1.11 |
$ |
1.06 |
$ |
0.63 |
$ |
0.93 |
$ |
(0.11) |
(10) |
% |
$ |
0.07 |
8 |
% |
|||||||
Cash dividends declared |
$ |
0.04 |
$ |
0.04 |
$ |
0.04 |
$ |
0.04 |
$ |
— |
$ |
— |
— |
% |
$ |
0.04 |
100 |
% |
|||||||
N/M - Not meaningful |
|||||||||||||||||||||||||
Flagstar Bancorp, Inc. |
|||||||||||
Twelve Months Ended |
Compared to: Year Ended December 31, 2018 |
||||||||||
December 31, 2019 |
December 31, 2018 |
Amount |
Percent |
||||||||
Interest Income |
|||||||||||
Total interest income |
$ |
794 |
$ |
683 |
$ |
111 |
16 |
% |
|||
Total interest expense |
232 |
186 |
46 |
25 |
% |
||||||
Net interest income |
562 |
497 |
65 |
13 |
% |
||||||
Provision (benefit) for loan losses |
18 |
(8) |
26 |
N/M |
|||||||
Net interest income after provision (benefit) for loan losses |
544 |
505 |
39 |
8 |
% |
||||||
Noninterest Income |
|||||||||||
Net gain on loan sales |
335 |
200 |
135 |
68 |
% |
||||||
Loan fees and charges |
100 |
87 |
13 |
15 |
% |
||||||
Net return on the mortgage servicing rights |
6 |
36 |
(30) |
(83) |
% |
||||||
Loan administration income |
30 |
23 |
7 |
30 |
% |
||||||
Deposit fees and charges |
38 |
21 |
17 |
81 |
% |
||||||
Other noninterest income |
101 |
72 |
29 |
40 |
% |
||||||
Total noninterest income |
610 |
439 |
171 |
39 |
% |
||||||
Noninterest Expense |
|||||||||||
Compensation and benefits |
377 |
318 |
59 |
19 |
% |
||||||
Occupancy and equipment |
161 |
127 |
34 |
27 |
% |
||||||
Commissions |
111 |
80 |
31 |
39 |
% |
||||||
Loan processing expense |
80 |
59 |
21 |
36 |
% |
||||||
Legal and professional expense |
27 |
28 |
(1) |
(4) |
% |
||||||
Federal insurance premiums |
20 |
22 |
(2) |
(9) |
% |
||||||
Intangible asset amortization |
15 |
5 |
10 |
N/M |
|||||||
Other noninterest expense |
97 |
73 |
24 |
33 |
% |
||||||
Total noninterest expense |
888 |
712 |
176 |
25 |
% |
||||||
Income before income taxes |
266 |
232 |
34 |
15 |
% |
||||||
Provision for income taxes |
48 |
45 |
3 |
7 |
% |
||||||
Net income (loss) |
$ |
218 |
$ |
187 |
$ |
31 |
17 |
% |
|||
Income per share |
|||||||||||
Basic |
$ |
3.85 |
$ |
3.26 |
$ |
0.59 |
18 |
% |
|||
Diluted |
$ |
3.80 |
$ |
3.21 |
$ |
0.59 |
18 |
% |
|||
Cash dividends declared |
$ |
0.16 |
$ |
— |
$ |
0.16 |
N/M |
||||
N/M - Not meaningful |
|||||||||||
Flagstar Bancorp, Inc. |
|||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||
December 31, 2019 |
September 30, |
December 31, 2018 |
December 31, |
December 31, |
|||||||||||
Selected Mortgage Statistics: |
|||||||||||||||
Mortgage rate lock commitments (fallout-adjusted) (1) |
$ |
8,179 |
$ |
9,197 |
$ |
5,284 |
$ |
32,322 |
$ |
30,308 |
|||||
Mortgage loans closed |
$ |
9,303 |
$ |
9,262 |
$ |
6,340 |
$ |
32,720 |
$ |
32,465 |
|||||
Mortgage loans sold and securitized |
$ |
8,135 |
$ |
8,186 |
$ |
7,146 |
$ |
30,330 |
$ |
32,076 |
|||||
Selected Ratios: |
|||||||||||||||
Interest rate spread |
2.39 |
% |
2.48 |
% |
3.52 |
% |
2.52 |
% |
2.81 |
% |
|||||
Adjusted interest rate spread (2)(3) |
2.39 |
% |
2.48 |
% |
2.63 |
% |
2.52 |
% |
2.58 |
% |
|||||
Net interest margin |
2.91 |
% |
3.05 |
% |
3.70 |
% |
3.05 |
% |
3.07 |
% |
|||||
Adjusted net interest margin (3) |
2.91 |
% |
3.05 |
% |
2.99 |
% |
3.05 |
% |
2.89 |
% |
|||||
Net margin on loans sold and securitized |
1.24 |
% |
1.34 |
% |
0.44 |
% |
1.10 |
% |
0.62 |
% |
|||||
Return on average assets |
0.99 |
% |
1.20 |
% |
1.17 |
% |
1.05 |
% |
1.04 |
% |
|||||
Adjusted return on average assets (3) (4) |
0.99 |
% |
1.20 |
% |
0.91 |
% |
0.96 |
% |
0.98 |
% |
|||||
Return on average common equity |
12.69 |
% |
14.72 |
% |
14.29 |
% |
12.84 |
% |
12.58 |
% |
|||||
Return on average tangible common equity (4) |
14.76 |
% |
17.12 |
% |
15.96 |
% |
15.15 |
% |
13.61 |
% |
|||||
Adjusted return on average tangible common equity (3) (4) |
14.76 |
% |
17.12 |
% |
12.44 |
% |
13.87 |
% |
12.67 |
% |
|||||
Efficiency ratio |
78.2 |
% |
75.2 |
% |
75.7 |
% |
75.8 |
% |
76.0 |
% |
|||||
Common equity-to-assets ratio (average for the period) |
7.83 |
% |
8.12 |
% |
8.41 |
% |
8.20 |
% |
8.28 |
% |
|||||
Average Balances: |
|||||||||||||||
Average interest-earning assets |
$ |
20,708 |
$ |
18,997 |
$ |
16,391 |
$ |
18,453 |
$ |
16,136 |
|||||
Average interest-bearing liabilities |
$ |
14,208 |
$ |
12,893 |
$ |
13,046 |
$ |
13,130 |
$ |
13,124 |
|||||
Average stockholders' equity |
$ |
1,803 |
$ |
1,722 |
$ |
1,548 |
$ |
1,695 |
$ |
1,488 |
|||||
(1) |
Fallout-adjusted mortgage rate lock commitments are adjusted by a percentage of mortgage loans in the pipeline that are not expected to close based on previous historical experience and the level of interest rates. |
(2) |
Interest rate spread is the difference between the annualized yield earned on average interest-earning assets for the period and the annualized rate of interest paid on average interest-bearing liabilities for the period. |
(3) |
See Non-GAAP Reconciliation for further information. |
(4) |
Excludes goodwill, intangible assets and the associated amortization. See Non-GAAP Reconciliation for further information. |
December 31, |
September 30, |
December 31, |
|||||||
Selected Statistics: |
|||||||||
Book value per common share |
$ |
31.57 |
$ |
30.69 |
$ |
27.19 |
|||
Tangible book value per share (1) |
$ |
28.57 |
$ |
27.62 |
$ |
23.90 |
|||
Number of common shares outstanding |
56,631,236 |
56,510,341 |
57,749,464 |
||||||
Number of FTE employees |
4,453 |
4,171 |
3,938 |
||||||
Number of bank branches |
160 |
160 |
160 |
||||||
Ratio of nonperforming assets to total assets (2) |
0.15 |
% |
0.16 |
% |
0.16 |
% |
|||
Common equity-to-assets ratio |
7.68 |
% |
7.88 |
% |
8.47 |
% |
|||
MSR Key Statistics and Ratios: |
|||||||||
Weighted average service fee (basis points) |
39.7 |
39.9 |
35.8 |
||||||
Capitalized value of mortgage servicing rights |
1.21 |
% |
1.14 |
% |
1.35 |
% |
|||
(1) |
Excludes goodwill and intangibles of $170 million, $174 million and $190 million at December 31,2019, September 30, 2019, and December 31, 2018, respectively. See Non-GAAP Reconciliation for further information. |
(2) |
Ratio excludes LHFS. |
Average Balances, Yields and Rates |
||||||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||||||
December 31, 2019 |
September 30, 2019 |
December 31, 2018 |
||||||||||||||||||||||
Average Balance |
Interest |
Annualized Yield/Rate |
Average Balance |
Interest |
Annualized Yield/Rate |
Average Balance |
Interest |
Annualized Yield/Rate |
||||||||||||||||
Interest-Earning Assets |
||||||||||||||||||||||||
Loans held-for-sale |
$ |
5,199 |
$ |
51 |
3.92 |
% |
$ |
3,786 |
$ |
40 |
4.22 |
% |
$ |
3,991 |
$ |
48 |
4.78 |
% |
||||||
Loans held-for-investment |
||||||||||||||||||||||||
Residential first mortgage |
3,215 |
30 |
3.60 |
% |
3,282 |
29 |
3.58 |
% |
3,115 |
29 |
3.68 |
% |
||||||||||||
Home equity |
989 |
12 |
4.86 |
% |
934 |
13 |
5.37 |
% |
717 |
10 |
5.43 |
% |
||||||||||||
Other |
728 |
11 |
5.97 |
% |
658 |
10 |
5.99 |
% |
231 |
3 |
6.06 |
% |
||||||||||||
Total Consumer loans |
4,932 |
53 |
4.20 |
% |
4,874 |
52 |
4.24 |
% |
4,063 |
42 |
4.12 |
% |
||||||||||||
Commercial Real Estate |
2,763 |
34 |
4.91 |
% |
2,594 |
35 |
5.39 |
% |
2,171 |
31 |
5.52 |
% |
||||||||||||
Commercial and Industrial |
1,726 |
21 |
4.80 |
% |
1,767 |
22 |
4.97 |
% |
1,345 |
19 |
5.48 |
% |
||||||||||||
Warehouse Lending |
2,747 |
33 |
4.61 |
% |
2,508 |
32 |
5.00 |
% |
1,337 |
18 |
5.29 |
% |
||||||||||||
Total Commercial loans |
7,236 |
88 |
4.77 |
% |
6,869 |
89 |
5.14 |
% |
4,853 |
68 |
5.45 |
% |
||||||||||||
Total loans held-for-investment |
12,168 |
141 |
4.54 |
% |
11,743 |
141 |
4.77 |
% |
8,916 |
110 |
4.84 |
% |
||||||||||||
Loans with government guarantees |
678 |
4 |
2.16 |
% |
574 |
4 |
2.78 |
% |
350 |
2 |
2.72 |
% |
||||||||||||
Investment securities |
2,511 |
16 |
2.49 |
% |
2,713 |
17 |
2.63 |
% |
2,996 |
21 |
2.84 |
% |
||||||||||||
Interest-earning deposits |
152 |
1 |
2.26 |
% |
181 |
1 |
2.22 |
% |
138 |
— |
1.55 |
% |
||||||||||||
Total interest-earning assets |
20,708 |
$ |
213 |
4.04 |
% |
18,997 |
$ |
203 |
4.27 |
% |
16,391 |
$ |
181 |
4.39 |
% |
|||||||||
Other assets |
2,328 |
2,200 |
2,022 |
|||||||||||||||||||||
Total assets |
$ |
23,036 |
$ |
21,197 |
$ |
18,413 |
||||||||||||||||||
Interest-Bearing Liabilities |
||||||||||||||||||||||||
Retail deposits |
||||||||||||||||||||||||
Demand deposits |
$ |
1,448 |
$ |
3 |
0.70 |
% |
$ |
1,388 |
$ |
3 |
0.88 |
% |
$ |
1,072 |
$ |
3 |
1.02 |
% |
||||||
Savings deposits |
3,335 |
10 |
1.19 |
% |
3,262 |
10 |
1.20 |
% |
3,075 |
7 |
0.91 |
% |
||||||||||||
Money market deposits |
700 |
— |
0.35 |
% |
722 |
1 |
0.34 |
% |
446 |
— |
0.41 |
% |
||||||||||||
Certificates of deposit |
2,459 |
15 |
2.37 |
% |
2,583 |
15 |
2.40 |
% |
2,274 |
11 |
1.88 |
% |
||||||||||||
Total retail deposits |
7,942 |
28 |
1.39 |
% |
7,955 |
29 |
1.45 |
% |
6,867 |
21 |
1.22 |
% |
||||||||||||
Government deposits |
1,192 |
4 |
1.39 |
% |
1,253 |
4 |
1.45 |
% |
1,184 |
5 |
1.48 |
% |
||||||||||||
Wholesale deposits and other |
666 |
4 |
2.36 |
% |
744 |
5 |
2.42 |
% |
625 |
3 |
2.08 |
% |
||||||||||||
Total interest-bearing deposits |
9,800 |
36 |
1.46 |
% |
9,952 |
38 |
1.52 |
% |
8,676 |
29 |
1.31 |
% |
||||||||||||
Short-term FHLB advances and other |
3,262 |
15 |
1.74 |
% |
1,910 |
10 |
2.24 |
% |
2,954 |
18 |
2.39 |
% |
||||||||||||
Long-term FHLB advances |
650 |
3 |
1.43 |
% |
536 |
2 |
1.72 |
% |
921 |
(25) |
(10.65) |
% |
||||||||||||
Less: Swap gain reclassified out of OCI (4) |
— |
— |
29 |
|||||||||||||||||||||
Adjusted long-term FHLB advances (4) |
3 |
1.43 |
% |
2 |
1.72 |
% |
921 |
4 |
1.97 |
% |
||||||||||||||
Other long-term debt |
496 |
7 |
5.45 |
% |
495 |
7 |
5.60 |
% |
495 |
7 |
5.65 |
% |
||||||||||||
Adjusted total interest-bearing liabilities (4) |
14,208 |
61 |
1.65 |
% |
12,893 |
57 |
1.79 |
% |
13,046 |
58 |
1.76 |
% |
||||||||||||
Noninterest-bearing deposits |
||||||||||||||||||||||||
Retail deposits and other |
1,332 |
1,315 |
1,136 |
|||||||||||||||||||||
Custodial deposits (1) |
4,772 |
4,550 |
2,130 |
|||||||||||||||||||||
Total Noninterest-bearing deposits |
6,104 |
5,865 |
3,266 |
|||||||||||||||||||||
Other liabilities |
921 |
717 |
553 |
|||||||||||||||||||||
Stockholders' equity |
1,803 |
1,722 |
1,548 |
|||||||||||||||||||||
Total liabilities and stockholders' equity |
$ |
23,036 |
$ |
21,197 |
$ |
18,413 |
||||||||||||||||||
Net interest-earning assets |
$ |
6,500 |
$ |
6,104 |
$ |
3,345 |
||||||||||||||||||
Adjusted net interest income (4) |
$ |
152 |
$ |
146 |
$ |
123 |
||||||||||||||||||
Adjusted interest rate spread (2)(4) |
2.39 |
% |
2.48 |
% |
2.63 |
% |
||||||||||||||||||
Adjusted net interest margin (3)(4) |
2.91 |
% |
3.05 |
% |
2.99 |
% |
||||||||||||||||||
Ratio of average interest-earning assets to interest-bearing liabilities |
145.8 |
% |
147.3 |
% |
125.6 |
% |
||||||||||||||||||
Total average deposits |
$ |
15,904 |
$ |
15,817 |
$ |
11,942 |
||||||||||||||||||
(1) |
Approximately 80 percent of custodial deposits from loans subserviced which pay interest that is recognized as an offset in net loan administration income. |
(2) |
Interest rate spread is the difference between rate of interest earned on interest-earning assets and rate of interest paid on interest-bearing liabilities. |
(3) |
Net interest margin is net interest income divided by average interest-earning assets. |
(4) |
The three months ended December 31, 2018, excludes $29 million of hedging gains reclassified from AOCI in conjunction with the payment of long-term FHLB advances. |
Average Balances, Yields and Rates |
||||||||||||||||
Twelve Months Ended |
||||||||||||||||
December 31, 2019 |
December 31, 2018 |
|||||||||||||||
Average Balance |
Interest |
Annualized Yield/Rate |
Average Balance |
Interest |
Annualized Yield/Rate |
|||||||||||
Interest-Earning Assets |
||||||||||||||||
Loans held-for-sale |
$ |
3,952 |
$ |
170 |
4.30 |
% |
$ |
4,196 |
$ |
190 |
4.52 |
% |
||||
Loans held-for-investment |
||||||||||||||||
Residential first mortgage |
3,173 |
115 |
3.61 |
% |
2,949 |
105 |
3.56 |
% |
||||||||
Home equity |
871 |
46 |
5.31 |
% |
690 |
36 |
5.21 |
% |
||||||||
Other |
566 |
36 |
6.33 |
% |
111 |
6 |
5.73 |
% |
||||||||
Total Consumer loans |
4,610 |
197 |
4.26 |
% |
3,750 |
147 |
3.93 |
% |
||||||||
Commercial Real Estate |
2,502 |
136 |
5.38 |
% |
2,063 |
109 |
5.23 |
% |
||||||||
Commercial and Industrial |
1,708 |
88 |
5.10 |
% |
1,288 |
69 |
5.32 |
% |
||||||||
Warehouse Lending |
2,112 |
107 |
4.99 |
% |
1,318 |
69 |
5.14 |
% |
||||||||
Total Commercial loans |
6,322 |
331 |
5.17 |
% |
4,669 |
247 |
5.23 |
% |
||||||||
Total loans held-for-investment |
10,932 |
528 |
4.79 |
% |
8,419 |
394 |
4.65 |
% |
||||||||
Loans with government guarantees |
553 |
15 |
2.66 |
% |
303 |
11 |
3.53 |
% |
||||||||
Investment securities |
2,845 |
77 |
2.71 |
% |
3,094 |
86 |
2.76 |
% |
||||||||
Interest-earning deposits |
171 |
4 |
2.35 |
% |
124 |
2 |
1.83 |
% |
||||||||
Total interest-earning assets |
18,453 |
$ |
794 |
4.28 |
% |
16,136 |
$ |
683 |
4.21 |
% |
||||||
Other assets |
2,221 |
1,844 |
||||||||||||||
Total assets |
$ |
20,674 |
$ |
17,980 |
||||||||||||
Interest-Bearing Liabilities |
||||||||||||||||
Retail deposits |
||||||||||||||||
Demand deposits |
$ |
1,345 |
$ |
11 |
0.77 |
% |
$ |
764 |
$ |
7 |
0.93 |
% |
||||
Savings deposits |
3,220 |
36 |
1.13 |
% |
3,300 |
29 |
0.87 |
% |
||||||||
Money market deposits |
736 |
2 |
0.32 |
% |
288 |
2 |
0.49 |
% |
||||||||
Certificates of deposit |
2,536 |
59 |
2.31 |
% |
2,015 |
34 |
1.70 |
% |
||||||||
Total retail deposits |
7,837 |
108 |
1.37 |
% |
6,367 |
72 |
1.12 |
% |
||||||||
Government deposits |
1,186 |
17 |
1.46 |
% |
1,149 |
14 |
1.23 |
% |
||||||||
Wholesale deposits and other |
554 |
13 |
2.36 |
% |
401 |
8 |
2.02 |
% |
||||||||
Total interest-bearing deposits |
9,577 |
138 |
1.44 |
% |
7,917 |
94 |
1.18 |
% |
||||||||
Short-term FHLB advances and other |
2,633 |
59 |
2.23 |
% |
3,521 |
68 |
1.93 |
% |
||||||||
Long-term FHLB advances |
425 |
7 |
1.59 |
% |
1,192 |
(4) |
(0.32) |
% |
||||||||
Less: Swap gain reclassified out of OCI (4) |
— |
29 |
||||||||||||||
Adjusted long-term FHLB advances (4) |
425 |
7 |
1.59 |
% |
1,192 |
25 |
2.12 |
% |
||||||||
Other long-term debt |
495 |
28 |
5.65 |
% |
494 |
28 |
5.56 |
% |
||||||||
Adjusted total interest-bearing liabilities (4) |
13,130 |
232 |
1.76 |
% |
13,124 |
215 |
1.63 |
% |
||||||||
Noninterest-bearing deposits |
||||||||||||||||
Retail deposits and other |
1,291 |
1,066 |
||||||||||||||
Custodial deposits (1) |
3,839 |
1,792 |
||||||||||||||
Total Noninterest-bearing deposits |
5,130 |
2,858 |
||||||||||||||
Other liabilities |
719 |
510 |
||||||||||||||
Stockholders' equity |
1,695 |
1,488 |
||||||||||||||
Total liabilities and stockholders' equity |
$ |
20,674 |
$ |
17,980 |
||||||||||||
Net interest-earning assets |
$ |
5,323 |
$ |
3,012 |
||||||||||||
Adjusted net interest income (4) |
$ |
562 |
$ |
468 |
||||||||||||
Adjusted interest rate spread (2)(4) |
2.52 |
% |
2.58 |
% |
||||||||||||
Adjusted net interest margin (3)(4) |
3.05 |
% |
2.89 |
% |
||||||||||||
Ratio of average interest-earning assets to interest-bearing liabilities |
140.5 |
% |
122.9 |
% |
||||||||||||
Total average deposits |
$ |
14,708 |
$ |
10,775 |
||||||||||||
(1) |
Approximately 80 percent of custodial deposits from loans subserviced which pay interest that is recognized as an offset in net loan administration income. |
(2) |
Interest rate spread is the difference between rate of interest earned on interest-earning assets and rate of interest paid on interest-bearing liabilities. |
(3) |
Net interest margin is net interest income divided by average interest-earning assets. |
(4) |
The twelve months ended December 31, 2018, excludes $29 million of hedging gains reclassified from AOCI in conjunction with the payment of long-term FHLB advances |
Earnings Per Share |
|||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||
December 31, 2019 |
September 30, |
December 31, 2018 |
December 31, 2019 |
December 31, 2018 |
|||||||||||
Net income |
$ |
58 |
$ |
63 |
$ |
54 |
$ |
218 |
$ |
187 |
|||||
Weighted average common shares outstanding |
56,513,890 |
56,484,499 |
57,628,561 |
56,584,238 |
57,520,289 |
||||||||||
Stock-based awards |
684,844 |
626,297 |
756,793 |
654,740 |
802,661 |
||||||||||
Weighted average diluted common shares |
57,198,734 |
57,110,796 |
58,385,354 |
57,238,978 |
58,322,950 |
||||||||||
Basic earnings per common share |
$ |
1.01 |
$ |
1.12 |
$ |
0.94 |
$ |
3.85 |
$ |
3.26 |
|||||
Stock-based awards |
(0.01) |
(0.01) |
(0.01) |
(0.05) |
(0.05) |
||||||||||
Diluted earnings per common share |
$ |
1.00 |
$ |
1.11 |
$ |
0.93 |
$ |
3.80 |
$ |
3.21 |
|||||
Regulatory Capital - Bancorp |
|||||||||||||||
December 31, 2019 |
September 30, 2019 |
December 31, 2018 |
|||||||||||||
Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
||||||||||
Tier 1 leverage (to adjusted avg. total assets) |
$ |
1,720 |
7.57 |
% |
$ |
1,668 |
7.98 |
% |
$ |
1,505 |
8.29 |
% |
|||
Total adjusted avg. total asset base |
$ |
22,724 |
$ |
20,901 |
$ |
18,158 |
|||||||||
Tier 1 common equity (to risk weighted assets) |
$ |
1,480 |
9.32 |
% |
$ |
1,428 |
9.25 |
% |
$ |
1,265 |
10.54 |
% |
|||
Tier 1 capital (to risk weighted assets) |
$ |
1,720 |
10.83 |
% |
$ |
1,668 |
10.81 |
% |
$ |
1,505 |
12.54 |
% |
|||
Total capital (to risk weighted assets) |
$ |
1,830 |
11.52 |
% |
$ |
1,781 |
11.54 |
% |
$ |
1,637 |
13.63 |
% |
|||
Risk-weighted asset base |
$ |
15,886 |
$ |
15,432 |
$ |
12,006 |
|||||||||
Regulatory Capital - Bank |
|||||||||||||||
December 31, 2019 |
September 30, 2019 |
December 31, 2018 |
|||||||||||||
Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
||||||||||
Tier 1 leverage (to adjusted avg. total assets) |
$ |
1,752 |
7.71 |
% |
$ |
1,747 |
8.35 |
% |
$ |
1,574 |
8.67 |
% |
|||
Total adjusted avg. total asset base |
$ |
22,727 |
$ |
20,914 |
$ |
18,151 |
|||||||||
Tier 1 common equity (to risk weighted assets) |
$ |
1,752 |
11.04 |
% |
$ |
1,747 |
11.33 |
% |
$ |
1,574 |
13.12 |
% |
|||
Tier 1 capital (to risk weighted assets) |
$ |
1,752 |
11.04 |
% |
$ |
1,747 |
11.33 |
% |
$ |
1,574 |
13.12 |
% |
|||
Total capital (to risk weighted assets) |
$ |
1,862 |
11.73 |
% |
$ |
1,860 |
12.06 |
% |
$ |
1,705 |
14.21 |
% |
|||
Risk-weighted asset base |
$ |
15,873 |
$ |
15,418 |
$ |
11,997 |
|||||||||
Loans Serviced |
|||||||||||||||
December 31, 2019 |
September 30, 2019 |
December 31, 2018 |
|||||||||||||
Unpaid Principal Balance (1) |
Number of accounts |
Unpaid Principal Balance (1) |
Number of accounts |
Unpaid Principal Balance (1) |
Number of accounts |
||||||||||
Subserviced for others (2) |
$ |
194,638 |
918,662 |
$ |
171,145 |
826,472 |
$ |
146,040 |
705,149 |
||||||
Serviced for others |
24,003 |
105,469 |
25,039 |
106,992 |
21,592 |
88,434 |
|||||||||
Serviced for own loan portfolio (3) |
9,536 |
66,526 |
8,058 |
60,088 |
7,438 |
57,401 |
|||||||||
Total loans serviced |
$ |
228,177 |
1,090,657 |
$ |
204,242 |
993,552 |
$ |
175,070 |
850,984 |
||||||
(1) |
UPB, net of write downs, does not include premiums or discounts. |
(2) |
Includes temporary short-term subservicing performed as a result of sales of servicing-released mortgage servicing rights. Includes repossessed assets. |
(3) |
Includes loans held-for-investment (residential first mortgage, home equity and other consumer), loans-held-for-sale (residential first mortgage), loans with government guarantees (residential first mortgage), and repossessed assets. |
Loans Held-for-Investment |
|||||||||||||||
December 31, 2019 |
September 30, 2019 |
December 31, 2018 |
|||||||||||||
Consumer loans |
|||||||||||||||
Residential first mortgage |
$ |
3,154 |
26.0 |
% |
$ |
3,258 |
26.0 |
% |
$ |
2,999 |
33.0 |
% |
|||
Home equity |
1,024 |
8.4 |
% |
985 |
7.8 |
% |
731 |
8.0 |
% |
||||||
Other |
729 |
6.0 |
% |
693 |
5.5 |
% |
314 |
3.5 |
% |
||||||
Total consumer loans |
4,907 |
40.4 |
% |
$ |
4,936 |
39.3 |
% |
$ |
4,044 |
44.5 |
% |
||||
Commercial loans |
|||||||||||||||
Commercial real estate |
2,828 |
23.3 |
% |
2,697 |
21.5 |
% |
2,152 |
23.7 |
% |
||||||
Commercial and industrial |
1,634 |
13.5 |
% |
1,700 |
13.6 |
% |
1,433 |
15.8 |
% |
||||||
Warehouse lending |
2,760 |
22.8 |
% |
3,215 |
25.6 |
% |
1,459 |
16.0 |
% |
||||||
Total commercial loans |
7,222 |
59.6 |
% |
7,612 |
60.7 |
% |
5,044 |
55.5 |
% |
||||||
Total loans held-for-investment |
$ |
12,129 |
100.0 |
% |
$ |
12,548 |
100.0 |
% |
$ |
9,088 |
100.0 |
% |
|||
Other Consumer Loans Held-for-Investment |
|||||||||||||||
December 31, 2019 |
September 30, 2019 |
December 31, 2018 |
|||||||||||||
Indirect Lending |
$ |
578 |
79.3 |
% |
$ |
519 |
74.9 |
% |
$ |
153 |
48.7 |
% |
|||
Point of Sale |
63 |
8.6 |
% |
58 |
8.4 |
% |
28 |
8.9 |
% |
||||||
Other |
88 |
12.1 |
% |
116 |
16.7 |
% |
133 |
42.4 |
% |
||||||
Total other consumer loans |
$ |
729 |
100.0 |
% |
$ |
693 |
100.0 |
% |
$ |
314 |
100.0 |
% |
|||
Allowance for Loan Losses |
|||||||||
As of/For the Three Months Ended |
|||||||||
December 31, 2019 |
September 30, 2019 |
December 31, 2018 |
|||||||
Allowance for loan losses |
|||||||||
Residential first mortgage |
$ |
22 |
$ |
28 |
$ |
38 |
|||
Home equity |
13 |
16 |
15 |
||||||
Other |
7 |
6 |
3 |
||||||
Total consumer loans |
42 |
50 |
56 |
||||||
Commercial real estate |
38 |
33 |
48 |
||||||
Commercial and industrial |
22 |
22 |
18 |
||||||
Warehouse lending |
5 |
5 |
6 |
||||||
Total commercial loans |
65 |
60 |
72 |
||||||
Total allowance for loan losses |
$ |
107 |
$ |
110 |
$ |
128 |
|||
Allowance for Loan Losses |
|||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|||||||||||
Beginning balance |
$ |
110 |
$ |
110 |
$ |
134 |
$ |
128 |
$ |
140 |
|||||
Provision (benefit) for loan losses |
— |
1 |
(5) |
18 |
(8) |
||||||||||
Charge-offs |
|||||||||||||||
Total consumer loans |
(4) |
(4) |
(2) |
(12) |
(8) |
||||||||||
Total commercial loans |
— |
— |
— |
(31) |
— |
||||||||||
Total charge-offs |
$ |
(4) |
$ |
(4) |
$ |
(2) |
$ |
(43) |
$ |
(8) |
|||||
Recoveries |
|||||||||||||||
Total consumer loans |
1 |
2 |
1 |
3 |
4 |
||||||||||
Total commercial loans |
— |
1 |
— |
1 |
— |
||||||||||
Total recoveries |
1 |
3 |
1 |
4 |
4 |
||||||||||
Charge-offs, net of recoveries |
(3) |
(1) |
(1) |
(39) |
(4) |
||||||||||
Ending balance |
$ |
107 |
$ |
110 |
$ |
128 |
$ |
107 |
$ |
128 |
|||||
Net charge-offs/(recoveries) to LHFI |
|||||||||||||||
Residential first mortgage |
0.08 |
% |
0.07 |
% |
0.05 |
% |
0.80 |
% |
0.08 |
% |
|||||
Home equity and other consumer |
0.49 |
% |
0.27 |
% |
0.23 |
% |
1.72 |
% |
0.21 |
% |
|||||
Commercial real estate |
— |
% |
— |
% |
(0.02) |
% |
— |
% |
(0.01) |
% |
|||||
Commercial and industrial |
0.07 |
% |
(0.22) |
% |
— |
% |
1.78 |
% |
(0.01) |
% |
|||||
(1) Excludes loans carried under the fair value option. |
|||||||||||||||
Nonperforming Loans and Assets |
|||||||||
December 31, |
September 30, |
December 31, |
|||||||
Nonperforming LHFI |
$ |
16 |
$ |
16 |
$ |
12 |
|||
Nonperforming TDRs |
3 |
3 |
3 |
||||||
Nonperforming TDRs at inception but performing for less than six months |
7 |
7 |
7 |
||||||
Total nonperforming LHFI and TDRs (1) |
26 |
26 |
22 |
||||||
Other nonperforming assets, net |
10 |
9 |
7 |
||||||
LHFS |
5 |
17 |
10 |
||||||
Total nonperforming assets |
$ |
41 |
$ |
52 |
$ |
39 |
|||
Ratio of nonperforming assets to total assets (2) |
0.15 |
% |
0.16 |
% |
0.16 |
% |
|||
Ratio of nonperforming LHFI and TDRs to LHFI |
0.21 |
% |
0.21 |
% |
0.24 |
% |
|||
Ratio of nonperforming assets to LHFI and repossessed assets (2) |
0.30 |
% |
0.29 |
% |
0.32 |
% |
|||
(1) |
Includes less than 90 day past due performing loans placed on nonaccrual. Interest is not being accrued on these loans. |
(2) |
Ratio excludes LHFS. |
Asset Quality - Loans Held-for-Investment |
|||||||||||||||
30-59 Days Past Due |
60-89 Days Past Due |
Greater than 90 days (1) |
Total Past Due |
Total Loans Held-for-Investment |
|||||||||||
December 31, 2019 |
|||||||||||||||
Consumer loans |
$ |
9 |
$ |
5 |
$ |
26 |
$ |
40 |
$ |
4,907 |
|||||
Commercial loans |
— |
— |
— |
— |
7,222 |
||||||||||
Total loans |
$ |
9 |
$ |
5 |
$ |
26 |
$ |
40 |
$ |
12,129 |
|||||
September 30, 2019 |
|||||||||||||||
Consumer loans |
$ |
9 |
$ |
3 |
$ |
26 |
$ |
38 |
4,936 |
||||||
Commercial loans |
— |
— |
— |
— |
7,612 |
||||||||||
Total loans |
$ |
9 |
$ |
3 |
$ |
26 |
$ |
38 |
$ |
12,548 |
|||||
December 31, 2018 |
|||||||||||||||
Consumer loans |
$ |
5 |
$ |
2 |
$ |
22 |
$ |
29 |
$ |
4,044 |
|||||
Commercial loans |
— |
— |
— |
— |
5,044 |
||||||||||
Total loans |
$ |
5 |
$ |
2 |
$ |
22 |
$ |
29 |
$ |
9,088 |
|||||
(1) |
Includes performing nonaccrual loans that are less than 90 days delinquent and for which interest cannot be accrued. |
Troubled Debt Restructurings |
|||||||||
TDRs |
|||||||||
Performing |
Nonperforming |
Total |
|||||||
December 31, 2019 |
|||||||||
Consumer loans |
$ |
38 |
$ |
10 |
$ |
48 |
|||
Total TDR loans |
$ |
38 |
$ |
10 |
$ |
48 |
|||
September 30, 2019 |
|||||||||
Consumer loans |
$ |
39 |
$ |
10 |
$ |
49 |
|||
Total TDR loans |
$ |
39 |
$ |
10 |
$ |
49 |
|||
December 31, 2018 |
|||||||||
Consumer loans |
$ |
44 |
$ |
10 |
$ |
54 |
|||
Total TDR loans |
$ |
44 |
$ |
10 |
$ |
54 |
|||
Non-GAAP Reconciliation |
|||||||||||||||
In addition to analyzing the Company's results on a reported basis, management reviews the Company's results and the results on an adjusted basis. The non-GAAP measures presented in the tables below reflect the adjustments of the reported U.S. GAAP results for significant items that management does not believe are reflective of the Company's current and ongoing operations. The DOJ benefit and acquisition related expenses and hedging gains recognized in conjunction with the Well Fargo branch acquisition from 2018 are not reflective of our ongoing operations and, therefore, have been excluded from our U.S. GAAP results. The Company believes that tangible book value per share, tangible common equity to assets ratio, return on average tangible equity, adjusted return on average tangible equity, adjusted return on average assets, adjusted HFI loan-to-deposit ratio, adjusted net income, adjusted basic and diluted earnings per share, adjusted noninterest expense, adjusted net interest income, adjusted net interest margin, adjusted income before taxes, and adjusted provision for income taxes provide a meaningful representation of its operating performance on an ongoing basis. |
|||||||||||||||
The following tables provide a reconciliation of non-GAAP financial measures. |
|||||||||||||||
Tangible book value per share and tangible common equity to assets ratio. |
|||||||||||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||||||
(Dollars in millions, except share data) |
|||||||||||||||
Total stockholders' equity |
$ |
1,788 |
$ |
1,734 |
$ |
1,656 |
$ |
1,574 |
$ |
1,570 |
|||||
Less: Goodwill and intangible assets |
170 |
174 |
178 |
182 |
190 |
||||||||||
Tangible book value |
$ |
1,618 |
$ |
1,560 |
$ |
1,478 |
$ |
1,392 |
$ |
1,380 |
|||||
Number of common shares outstanding |
56,631,236 |
56,510,341 |
56,483,937 |
56,480,086 |
57,749,464 |
||||||||||
Tangible book value per share |
$ |
28.57 |
$ |
27.62 |
$ |
26.16 |
$ |
24.65 |
$ |
23.90 |
|||||
Total assets |
$ |
23,266 |
$ |
22,048 |
$ |
20,206 |
$ |
19,445 |
$ |
18,531 |
|||||
Tangible common equity to assets ratio |
6.95 |
% |
7.08 |
% |
7.31 |
% |
7.16 |
% |
7.45 |
% |
|||||
Return on average tangible equity, adjusted return on average tangible equity and adjusted return on average assets. |
|||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||
December 31, 2019 |
September 30, 2019 |
December 31, 2018 |
December 31, 2019 |
December 31, 2018 |
|||||||||||
(Dollars in millions) |
|||||||||||||||
Net income |
$ |
58 |
$ |
63 |
$ |
54 |
$ |
218 |
$ |
187 |
|||||
Add: Intangible asset amortization, net of tax |
3 |
2 |
2 |
12 |
2 |
||||||||||
Tangible net income |
$ |
61 |
$ |
65 |
$ |
56 |
$ |
230 |
$ |
189 |
|||||
Total average equity |
$ |
1,803 |
$ |
1,722 |
$ |
1,548 |
$ |
1,695 |
$ |
1,488 |
|||||
Less: Average goodwill and intangible assets |
172 |
176 |
129 |
179 |
77 |
||||||||||
Total tangible average equity |
$ |
1,631 |
$ |
1,546 |
$ |
1,419 |
$ |
1,516 |
$ |
1,411 |
|||||
Return on average common equity |
12.69 |
% |
14.72 |
% |
13.98 |
% |
12.84 |
% |
12.58 |
% |
|||||
Adjustment to remove hedging gains |
— |
% |
(1.61) |
% |
|||||||||||
Adjustment to remove DOJ adjustment |
(1.20) |
% |
— |
% |
|||||||||||
Adjustment to remove Wells Fargo acquisition costs |
0.06 |
% |
0.86 |
% |
|||||||||||
Adjusted return on average common equity |
11.70 |
% |
11.83 |
% |
|||||||||||
Return on average tangible common equity |
14.76 |
% |
17.12 |
% |
15.88 |
% |
15.15 |
% |
13.46 |
% |
|||||
Adjustment to remove hedging gains |
— |
% |
— |
% |
(6.76) |
% |
— |
% |
(1.70) |
% |
|||||
Adjustment to remove DOJ adjustment |
— |
% |
— |
% |
— |
% |
(1.34) |
% |
— |
% |
|||||
Adjustment to remove Wells Fargo acquisition costs |
— |
% |
— |
% |
3.32 |
% |
0.06 |
% |
0.91 |
% |
|||||
Adjusted return on average tangible common equity |
14.76 |
% |
17.12 |
% |
12.44 |
% |
13.87 |
% |
12.67 |
% |
|||||
Return on average assets |
0.99 |
% |
1.20 |
% |
1.17 |
% |
1.05 |
% |
1.04 |
% |
|||||
Adjustment to remove hedging gains |
— |
% |
— |
% |
(0.52) |
% |
— |
% |
(0.13) |
% |
|||||
Adjustment to remove DOJ adjustment |
— |
% |
— |
% |
— |
% |
(0.09) |
% |
— |
% |
|||||
Adjustment to remove Wells Fargo acquisition costs |
— |
% |
— |
% |
0.26 |
% |
— |
% |
0.07 |
% |
|||||
Adjusted return on average assets |
0.99 |
% |
1.20 |
% |
0.91 |
% |
0.96 |
% |
0.98 |
% |
|||||
Adjusted HFI loan-to-deposit ratio. |
|||||||||||||||
December 31, 2019 |
September 30, 2019 |
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
|||||||||||
(Dollars in millions, except share data) |
|||||||||||||||
Average LHFI |
$ |
12,168 |
$ |
11,743 |
$ |
10,613 |
$ |
9,164 |
$ |
8,916 |
|||||
Less: Average warehouse loans |
2,747 |
2,508 |
1,997 |
1,175 |
1,337 |
||||||||||
Adjusted average LHFI |
$ |
9,421 |
$ |
9,235 |
$ |
8,616 |
$ |
7,989 |
$ |
7,579 |
|||||
Average deposits |
$ |
15,904 |
15,817 |
$ |
14,159 |
$ |
12,906 |
$ |
11,942 |
||||||
Less: Average custodial deposits |
4,772 |
4,550 |
3,469 |
2,532 |
2,130 |
||||||||||
Adjusted average deposits |
$ |
11,132 |
$ |
11,267 |
$ |
10,690 |
$ |
10,374 |
$ |
9,812 |
|||||
HFI loan-to-deposit ratio |
76.5 |
% |
74.2 |
% |
75.0 |
% |
71.0 |
% |
74.7 |
% |
|||||
Adjusted HFI loan-to-deposit ratio |
84.6 |
% |
82.0 |
% |
80.6 |
% |
77.0 |
% |
77.2 |
% |
|||||
Adjusted net interest income, noninterest income, noninterest expense, income before income taxes, provision for income taxes, net income, basic earnings per share, diluted earnings per share, net interest margin and efficiency ratio. |
|||||||||||||||
Three Months Ended |
|||||||||||||||
December 31, 2019 |
September 30, |
June 30, |
March 31, 2019 |
December 31, 2018 |
|||||||||||
(Dollars in millions) |
|||||||||||||||
Net interest income |
$ |
152 |
$ |
146 |
$ |
138 |
$ |
126 |
$ |
152 |
|||||
Hedging gains |
— |
— |
— |
— |
(29) |
||||||||||
Adjusted net interest income |
$ |
152 |
$ |
146 |
$ |
138 |
$ |
126 |
$ |
123 |
|||||
Noninterest income |
$ |
162 |
$ |
171 |
$ |
168 |
$ |
109 |
$ |
98 |
|||||
DOJ benefit |
— |
— |
(25) |
— |
— |
||||||||||
Adjusted noninterest income |
$ |
162 |
$ |
171 |
$ |
143 |
$ |
109 |
$ |
98 |
|||||
Noninterest expense |
$ |
245 |
$ |
238 |
$ |
214 |
$ |
191 |
$ |
189 |
|||||
Wells Fargo acquisition costs |
— |
— |
— |
1 |
14 |
||||||||||
Adjusted noninterest expense |
$ |
245 |
$ |
238 |
$ |
214 |
$ |
190 |
$ |
175 |
|||||
Income before income taxes |
$ |
69 |
$ |
78 |
$ |
75 |
$ |
44 |
$ |
66 |
|||||
Adjustment for hedging gains |
— |
— |
— |
— |
(29) |
||||||||||
Adjustment for DOJ benefit |
— |
— |
(25) |
— |
— |
||||||||||
Adjustment for Wells Fargo acquisition costs |
— |
— |
— |
1 |
14 |
||||||||||
Adjusted income before income taxes |
$ |
69 |
$ |
78 |
$ |
50 |
$ |
45 |
$ |
51 |
|||||
Provision for income taxes |
$ |
11 |
$ |
15 |
$ |
14 |
$ |
8 |
$ |
12 |
|||||
Tax impact on adjustment for hedging gains |
— |
— |
— |
— |
(5) |
||||||||||
Tax impact on adjustment for DOJ benefit |
— |
— |
(5) |
— |
— |
||||||||||
Tax impact on adjustment for Wells Fargo acquisition costs |
— |
— |
— |
— |
2 |
||||||||||
Adjusted provision for income taxes |
$ |
11 |
$ |
15 |
$ |
9 |
$ |
8 |
$ |
9 |
|||||
Net income |
$ |
58 |
$ |
63 |
$ |
61 |
$ |
36 |
$ |
54 |
|||||
Adjusted net income |
$ |
58 |
$ |
63 |
$ |
41 |
$ |
37 |
$ |
42 |
|||||
Weighted average common shares outstanding |
56,513,890 |
56,484,499 |
56,446,077 |
56,897,799 |
57,628,561 |
||||||||||
Weighted average diluted common shares |
57,198,734 |
57,110,796 |
57,061,822 |
57,590,272 |
58,385,354 |
||||||||||
Adjusted basic earnings per share |
$ |
1.01 |
$ |
1.12 |
$ |
0.72 |
$ |
0.65 |
$ |
0.73 |
|||||
Adjusted diluted earnings per share |
$ |
1.00 |
$ |
1.11 |
$ |
0.71 |
$ |
0.64 |
$ |
0.72 |
|||||
Average interest earning assets |
$ |
20,708 |
$ |
18,997 |
$ |
17,759 |
$ |
16,294 |
$ |
16,391 |
|||||
Net interest margin |
2.91 |
% |
3.05 |
% |
3.08 |
% |
3.09 |
% |
3.70 |
% |
|||||
Adjusted net interest margin |
2.91 |
% |
3.05 |
% |
3.08 |
% |
3.09 |
% |
2.99 |
% |
|||||
For more information, contact:
Kenneth Schellenberg
[email protected]
(248) 312-5741
SOURCE Flagstar Bancorp, Inc.
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