TROY, Mich., Aug.1, 2016 /PRNewswire/ -- Flagstar Bancorp, Inc. (NYSE: FBC) announced that it has now completed its repayment of funds initially received under the Troubled Asset Relief Program ("TARP") through redemption of all $267 million of the company's Fixed Rate Cumulative Perpetual Preferred Stock, Series C, originally issued to the U.S. Department of the Treasury as part of TARP, plus payment of $104 million in accrued and unpaid dividends. Flagstar funded the total redemption cost of $371 million through a combination of internal liquidity, including a $200 million dividend from its wholly owned subsidiary, Flagstar Bank, and $250 million from the proceeds of the issuance of its 6.125% Senior Notes due 2021.
"The resolution of TARP affirms the progress we have made in de-risking the balance sheet, building a strong management team, and creating a solid risk management organization," said Alessandro P. DiNello, president and chief executive officer. "We've boosted return on equity by replacing this high-cost funding with senior notes and other sources that cost, on average, only one-third of the TARP preferred on an after-tax basis. Even after the redemption, our regulatory capital remains strong, providing the necessary resources to continue to execute on our long-term business plans."
Flagstar Bancorp, Inc. (NYSE: FBC) is a $13.7 billion savings and loan holding company headquartered in Troy, Mich. Flagstar Bank, FSB, the largest bank headquartered in Michigan, 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 through 29 retail locations in 21 states. Flagstar is a leading national originator and servicer of mortgage loans, handling payments and recordkeeping for nearly $75 billion of home loans for nearly 360,000 borrowers. For more information, please visit flagstar.com.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management's current expectations and assumptions regarding the Company's business and performance, the economy and other future conditions, and forecasts of future events, circumstances and results. However, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, contingencies and other factors. Generally, forward-looking statements are not based on historical facts but instead represent our management's beliefs regarding future events. Such statements may be identified by words such as believe, expect, anticipate, intend, plan, believe, estimate, may increase, may fluctuate, and similar expressions or future or conditional verbs such as will, should, would and could. Such statements are based on management's current expectations and are subject to risks, uncertainties and changes in circumstances. Actual results and capital and other financial conditions may differ materially from those included in these statements due to a variety of factors, including without limitation those found 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).
Any forward-looking statements made by or on behalf of us speak only as to the date they are made, and we do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made, except as required under United States securities laws.
For more information, contact:
David L. Urban
SOURCE Flagstar Bancorp, Inc.