Flagstar Reports 2009 Financial Results
TROY, Mich., Feb. 1 /PRNewswire-FirstCall/ -- Flagstar Bancorp, Inc. (NYSE: FBC), the holding company for Flagstar Bank FSB, today reported its fourth quarter and annual results for 2009.
Flagstar reported a 2009 fourth quarter net loss of $71.6 million, or $(0.15) per share (diluted) as compared to a third quarter 2009 net loss of $298.2 million, or $(0.64) per share (diluted) and a fourth quarter 2008 net loss of $218.5 million, or $(2.62) per share (diluted). For the year ended December 31, 2009, Flagstar’s net loss was $513.8 million, or $(1.62) per share (diluted), as compared to a 2008 net loss of $275.4 million, or $(3.82) per share (diluted).
On a pre-tax, pre-credit cost basis, earnings before preferred dividends were $113.7 million in the fourth quarter 2009, as compared to such earnings of $58.8 million in the third quarter 2009.
Capital
At December 31, 2009, the wholly owned subsidiary Flagstar Bank remained “well-capitalized” for regulatory purposes, with capital ratios of 6.19% for Tier 1 capital and 11.68% for total risk-based capital.
On January 27, 2010, the Company announced that it had raised $300 million of capital through a previously announced rights offering. Had this capital been received on December 31, 2009, our capital ratios would have been 8.15% for Tier 1 capital and 15.28% for total risk-based capital.
“While we continue to manage through the asset quality issues on our legacy balance sheet, this significant investment of capital is an affirmative statement about the Flagstar franchise,” said Flagstar Chairman and CEO Joseph P. Campanelli. “We have learned from experience that, to be successful, a turnaround requires a strong management team, a sound business plan and the capital to implement that plan. We are excited about the success we have had with our progress to date in bringing these components together."
Assets
Total assets at December 31, 2009 were $14.0 billion as compared to $14.8 billion at September 30, 2009. The decrease was primarily a result of the decline in securities available for sale, trading securities and loans held for investment. Total assets were $14.2 billion at December 31, 2008.
Operations
For the fourth quarter 2009, the net loss applicable to common stockholders of $71.6 million reflected the following:
- Gain on loan sales decreased to $96.5 million as compared to $104.4 million for the third quarter 2009, reflecting both the decrease in interest rate locks on mortgage loans, to $7.9 billion in the fourth quarter 2009 from $8.7 billion in the third quarter 2009, and the decrease in residential mortgage loan sales, to $7.1 billion as compared to $7.6 billion in the third quarter of 2009. Margin on loan sales decreased slightly during the fourth quarter 2009 to 1.35% from 1.37%.
- Provision for loan losses decreased to $95.0 million as compared to $125.5 million for the third quarter of 2009.
- Loan fees, resulting from originating loans, decreased slightly to $27.8 million in the fourth quarter 2009 as compared to $29.4 million during the third quarter 2009. Loan originations were $6.9 billion for the fourth quarter 2009 as compared to $6.6 billion for third quarter 2009.
- Net loan administration income reflected a gain of $27.4 million (partially offset by a loss of approximately $0.5 million on trading securities that were used for economic hedging purposes) as compared to a loss of $30.3 million for the third quarter 2009 (offset by a gain of approximately $21.7 million on trading securities that were used for economic hedging purposes). The fourth quarter net gain of $26.9 million, as compared to the third quarter 2009 net loss of $8.6 million, included an increase in the fair value of mortgage servicing rights.
- Non interest expense decreased to $150.7 million as compared to $166.9 million in the third quarter 2009. The decrease reflected a decline in compensation and benefits of $5.0 million due to a reduction in salaried employees and a decline in other expenses of $11.8 million.
- Other expenses included a decline of $11.8 million in other taxes due to the recording of a valuation allowance on state deferred tax assets during the third quarter, a $4.2 million reduction in the valuation of warrants due to a lower stock price in the fourth quarter as compared to the third quarter 2009 and a $4.6 million gain related to termination of an agreement with one of our captive reinsurance counterparties.
- Provision for federal income taxes decreased to zero as compared to $115.0 million for the third quarter of 2009. The decrease is the result of a $172.0 million non-cash federal tax expense as a result of recording a valuation allowance on federal deferred tax assets, offset in part by the monthly benefit recorded of $57.0 million in the third quarter and zero in the fourth quarter. The valuation allowance, because it is an offset against the tax asset rather than a charge-off, is generally recoverable in future years as taxable income is earned.
Community Banking Operations
Flagstar Bank had 165 community banking branches at December 31, 2009 as compared to 176 branches at September 30, 2009 and 175 branches at December 31, 2008.
Net Interest Margin
Net interest margin increased to 1.67% for the fourth quarter 2009 as compared to 1.58% for the third quarter 2009 and 1.61% for fourth quarter 2008. The increase from third quarter 2009 reflects a $800 million decline in the average balance of earning assets with a 0.21% decline in yield and a $400 million decline in the average balance of interest bearing liabilities with a 0.44% decline in funding costs. For the year ended December 31, 2009, the net interest margin was 1.65% as compared to 1.78% for the year ended December 31, 2008, primarily reflecting a 0.75% decline in yield during 2009 was only partly offset by a 0.59% decline in funding costs during the same period.
Mortgage Banking Operations
Loan production, substantially comprised of agency residential first mortgage loans, increased to $6.9 billion for the fourth quarter 2009, as compared to $6.6 billion in the third quarter 2009, and from $5.4 billion for the fourth quarter 2008.
For the year ended December 31, 2009 loan production increased 14.5% to $32.4 billion, of which $32.3 billion were residential loans, as compared to $28.3 billion, including $28.0 billion of residential loans, for the year ended December 31, 2008.
Gain on loan sales margins decreased to 1.35% for the fourth quarter 2009, as compared to 1.37% for the third quarter 2009, and from 0.29% for the fourth quarter 2008. For the year ended December 31, 2009, the gain on sale margin increased to 1.55% as compared to 0.53% for the same period in 2008.
At December 31, 2009, the unpaid principal balances of loans associated with the mortgage servicing rights portfolio totaled $56.5 billion and had a weighted average service fee of 32.1 basis points. This was an increase from $53.2 billion at September 30, 2009 with a weighted average servicing fee of 32.6 basis points and an increase from $55.9 billion at December 31, 2008 with an average weighted servicing fee of 33.3 basis points.
Asset Quality
Non-performing assets, which include non-performing loans (i.e., loans 90 days or more past due, and matured loans), real estate owned and repurchased assets, but which exclude any FHA-insured assets, increased to $1.3 billion at December 31, 2009, from $1.2 billion at September 30, 2009 and $0.8 billion at December 31, 2008.
At December 31, 2009, the allowance for loan losses was $524.0 million, which equaled 48.9% of non-performing loans and 6.79% of loans held for investment. At September 30, 2009 and December 31, 2008, the allowance for loan losses were, respectively, $528.0 million (6.49% of loans held for investment) and $376.0 million (4.14% of loans held for investment) and equaled 48.9% and 52.1%, respectively, of non-performing loans.
Of the non-performing loans, residential first mortgage loans increased to $659.4 million at December 31, 2009, as compared to $606.3 million at September 30, 2009 and $432.6 million at December 31, 2008.
Non-performing commercial real estate mortgages decreased to $337.6 million at December 31, 2009 as compared to $419.5 million at September 30, 2009 and increased as compared to $202.6 million at December 31, 2008.
The balance of real estate owned, net of any FHA-insured assets, increased to $177.0 million at December 31, 2009 from $164.9 million at September 30, 2009 and $109.3 million at December 31, 2008. Repurchased assets were $45.7 million at December 31, 2009 as compared to $26.6 million at September 30, 2009 and $16.5 million at December 31, 2008.
Net loan charge-offs were $98.9 million for the fourth quarter 2009 as compared to $71.5 million for the third quarter 2009 and $24.3 million for the fourth quarter 2008. The provision for loan losses was $95.0 million for the fourth quarter 2009 as compared to $125.5 million for the third quarter 2009 and $176.3 million for the fourth quarter 2008.
Funding Sources
Flagstar Bank’s primary sources of funds are deposits obtained through its 165 community banking branches and the Internet as well as deposits obtained from municipalities and investment banking firms. Funds are also obtained through loan repayments and sales in the ordinary course of business, advances from the Federal Home Loan Bank of Indianapolis (FHLB), community banking operations, customer escrow accounts and security repurchase agreements. The Bank uses several of these sources at any one time to manage its daily and forecasted liquidity needs to satisfy operational requirements and policy levels while managing overall interest costs. Retail deposits were $5.5 billion at December 31, 2009, as compared to $5.7 billion at September 30, 2009 and $5.4 billion at December 31, 2008. At December 31, 2009, the Bank had a $7.0 billion line of credit with the FHLB, which was collateralized to $4.2 billion.
As Previously Announced
The Company's quarterly earnings conference call will be held on Tuesday, February 2, 2010 from 11 a.m. until 12 noon (Eastern).
Questions may be asked during the conference call or maybe submitted in advance by e-mail to [email protected].
The conference call and accompanying slide presentation will be webcast live on the Investor Relations section of the Company’s Web site, www.flagstar.com, with replays available at that site for at least 10 days.
To listen by telephone, please call at least 10 minutes prior to the start of the conference call at
(702) 696-4911 or toll free at (866) 294-1212, passcode: 50847473.
A replay will be available for five business days by calling (800) 642-1687 toll free or (706) 645-9291 using the passcode: 50847473.
Flagstar Bancorp, with $14.0 billion in total assets, is the secondly largest publicly held savings bank headquartered in the Midwest. At December 31, 2009, Flagstar operated 165 banking centers in Michigan, Indiana and Georgia and 23 home loan centers in 14 states. Flagstar Bank originates loans nationwide and is one of the leading originators of residential mortgage loans.
The information contained in this release is not intended as a solicitation to buy Flagstar Bancorp, Inc. stock and is provided for general information. This release contains certain statements that may constitute “forward-looking statements” within the meaning of federal securities laws. These forward-looking statements include statements about the Company’s beliefs, plans, objectives, goals, expectations, anticipations, estimates, and intentions, that are subject to significant risks and uncertainties, and are subject o change based upon various factors (some of which may be beyond the Company’s control). The words “may,” “could,” “should,” “would,” “believe,” and similar expressions are intended to identify forward-looking statements.
Flagstar Bancorp, Inc.
Summary of Selected Consolidated Financial Data
(Dollars in thousands, except per share data)
(Unaudited)
For the Three Months Ended
--------------------------
Summary of Consolidated December 31, September 30, December 31,
Statements of Operations 2009 2009 2008
---- ---- ----
Interest income $149,405 $167,107 $178,043
Interest expense (102,205) (119,513) (131,556)
-------- -------- --------
Net interest income 47,200 47,594 46,487
Provision for loan
losses (94,950) (125,544) (176,256)
------- -------- --------
Net interest (loss) income
after provision (47,750) (77,950) (129,769)
Non-interest income
Deposit fees and charges 8,774 8,438 7,395
Loan fees and charges,
net 27,802 29,422 410
Loan servicing fees, net 27,407 (30,293) (46,231)
Net gain (loss) on
trading securities (515) 21,714 14,466
Gain (loss) on trading
securities - residuals (16,243) (50,689) 1,837
Net gain on loan sales 96,477 104,416 16,657
Gain (loss) on MSR
sales, net 59 (1,319) 1,449
Net (loss) gain on sale
securities available for
sale 8,556 - -
Impairment - securities
available for sale (304) (2,875) (62,370)
Other (loss) income (20,455) (12,582) (9,828)
------- ------- ------
Total non-interest
income 131,558 66,232 (76,215)
Non-interest expenses
Compensation and
benefits (51,558) (56,598) (53,726)
Commissions (13,128) (12,149) (23,063)
Occupancy and equipment (16,456) (17,175) (19,437)
General and
administrative (29,404) (28,876) (26,148)
Other (40,423) (52,245) (29,504)
------- ------- -------
Total non-interest
expense (150,969) (167,043) (151,878)
Capitalized direct
cost of loan closing 235 137 21,893
--- --- ------
Total non-interest
expense after
capitalized direct
cost of loan
closing (150,734) (166,906) (129,985)
-------- -------- --------
Loss before federal
income tax and
preferred stock
dividend (66,926) (178,624) (335,969)
Provision (benefit) for
federal income taxes - 114,965 (117,506)
--- ------- --------
Net loss (66,926) (293,589) (218,463)
Preferred stock
dividends (4,660) (4,623) -
------ ------ ---
Net loss available to
common stockholders $(71,586) $(298,212) $(218,463)
======== ========= =========
Basic loss per share $(0.15) $(0.64) $(2.62)
====== ====== ======
Diluted loss per share $(0.15) $(0.64) $(2.62)
====== ====== ======
Net interest spread –
Consolidated 1.69% 1.48% 1.74%
Net interest
margin - Consolidated 1.54% 1.46% 1.49%
Net interest spread – Bank
only 1.74% 1.53% 1.79%
Net interest margin – Bank
only 1.67% 1.58% 1.61%
Return on average assets (1.91)% (7.60)% (5.94)%
Return on average equity (45.08)% (130.64)% (30.74)%
Efficiency ratio 84.3% 146.6% 437.2%
Average interest earning
assets $12,283,918 $13,160,528 $12,435,053
Average interest paying
liabilities $12,843,319 $13,217,383 $13,158,369
Average stockholders'
equity $635,151 $913,059 $710,658
Equity/assets ratio
(average for the period) 4.24% 5.82% 4.83%
Ratio of charge-offs to
average loans held for
investment 4.96% 3.48% 1.08%
For the Years Ended
-------------------
Summary of Consolidated December 31, December 31,
Statements of Operations 2009 2008
---- ----
Interest income $689,338 $777,997
Interest expense (477,798) (555,472)
-------- --------
Net interest income 211,540 222,525
Provision for loan losses (504,369) (343,963)
-------- --------
Net interest (loss) income
after provision (292,829) (121,438)
Non-interest income
Deposit fees and charges 32,428 27,424
Loan fees and charges, net 125,168 2,688
Loan servicing fees, net 7,167 (251)
Net gain (loss) on
trading securities 5,861 14,466
Gain (loss) on trading
securities - residuals (82,867) (24,649)
Net gain on loan sales 501,250 146,060
Gain (loss) on MSR sales, net (3,886) 1,797
Net (loss) gain on sale
securities available for sale 8,556 5,019
Impairment - securities
available for sale (20,747) (62,370)
Other (loss) income (49,644) 19,940
-------
Total non-interest
income 523,286 130,123
Non-interest expenses
Compensation and benefits (223,394) (219,251)
Commissions (73,994) (109,464)
Occupancy and equipment (70,009) (79,253)
General and administrative (138,062) (62,837)
Other (167,574) (78,579)
-------- -------
Total non-interest
expense (673,033) (549,384)
Capitalized direct cost of
loan closing 906 117,332
--- -------
Total non-interest expense
after capitalized direct
cost of loan closing (672,127) (432,052)
-------- --------
Loss before federal income
tax and preferred stock
dividend (441,670) (423,367)
Provision (benefit) for federal
income taxes 55,008 (147,960)
------ --------
Net loss (496,678) (275,407)
Preferred stock
dividends (17,124) -
------- ---
Net loss available to common
stockholders $(513,802) $(275,407)
========= =========
Basic loss per share $(1.62) $(3.82)
====== ======
Diluted loss per share $(1.62) $(3.82)
====== ======
Net interest spread – Consolidated 1.54% 1.71%
Net interest margin - Consolidated 1.55% 1.67%
Net interest spread – Bank only 1.58% 1.76%
Net interest margin – Bank only 1.65% 1.78%
Return on average assets (3.24)% (1.83)%
Return on average equity (62.87)% (37.66)%
Efficiency ratio 91.5% 122.5%
Average interest earning assets $13,584,015 $13,316,390
Average interest paying
liabilities $13,542,712 $13,439,660
Average stockholders' equity $817,248 $731,231
Equity/assets ratio (average for
the period) 5.15% 4.83%
Ratio of charge-offs to average
loans held for investment 4.20% 0.79%
Flagstar Bancorp, Inc.
Summary of Selected Consolidated Financial Data
(Dollars in thousands, except per share data)
(Unaudited)
Summary of the Consolidated
Statements of Financial December 31, September 30, December 31,
Condition: 2009 2009 2008
---- ---- ----
Total assets $14,013,331 $14,820,815 $14,203,657
Securities – trading 330,267 1,012,309 -
Investment securities available
for sale 605,621 817,424 1,118,453
Loans held for sale 1,970,104 2,070,878 1,484,680
Loans held for investment, net 7,190,308 7,605,497 8,706,121
Allowance for loan losses (524,000) (528,000) (376,000)
Mortgage servicing rights 652,374 567,800 520,763
Deposits 8,778,469 8,533,968 7,841,005
FHLB advances 3,900,000 4,800,000 5,200,000
Repurchase agreements 108,000 108,000 108,000
Stockholders' equity 596,724 667,597 472,293
Other Financial and Statistical Data:
Equity/assets ratio 4.26% 4.50% 3.33%
Core capital ratio 6.19% 6.39% 4.95%
Total risk-based capital ratio 11.68% 12.06% 9.10%
Book value per common share $0.70 $0.86 $5.65
Shares outstanding 468,771 468,530 83,627
Average shares outstanding 317,656 266,781 72,153
Average diluted shares
outstanding 317,656 266,781 72,153
Loans serviced for others $56,521,902 $53,159,885 $55,870,207
Weighted average service fee
(bps) 32.1 32.6 33.3
Value of mortgage servicing
rights 1.15% 1.06% 0.93%
Allowance for loan losses to
non performing loans 48.9% 50.0% 52.1%
Allowance for loan losses to
loans held for investment 6.79% 6.49% 4.14%
Non performing assets to total
assets 9.24% 8.41% 5.97%
Number of bank branches 165 176 175
Number of loan origination
centers 23 42 104
Number of employees (excluding
loan officers & account executives) 3,075 3,220 3,246
Number of loan officers and
account executives 336 436 674
Loan Originations
(Dollars in millions)
(unaudited)
For the Three Months Ended
--------------------------
December 31, September 30, December 31,
Loan type 2009 2009 2008
--------- ---- ---- ----
Residential mortgage
loans $6,902 99.9% $6,642 99.9% $5,390 100.0%
Consumer loans 1 - 1 - 4 -
Commercial loans 9 0.1 4 0.1 11 -
Total loan production $6,912 100.0% $6,647 100.0% $5,405 100.0%
====== ===== ====== ===== ====== =====
For the Year Ended
------------------
December 31, December 31,
Loan type 2009 2008
--------- ---- ----
Residential mortgage loans $32,331 99.9% $27,990 99.0%
Consumer loans 6 - 110 0.3
Commercial loans 38 0.1 206 0.7
Total loan production $32,375 100.0% $28,306 100.0%
======= ===== ======= =====
Loans Held for Investment
(Dollars in thousands)
(unaudited)
Description December 31, 2009 September 30, 2009 December 31, 2008
----------- ----------------- ----------------- -----------------
First
mortgage
loans $4,990,994 64.7% $5,304,950 65.2% $5,958,748 65.6%
Second
mortgage
loans 221,626 2.9 236,239 2.9 287,350 3.2
Commercial
real estate
loans 1,600,271 20.7 1,677,106 20.6 1,779,363 19.6
Construction
loans 16,642 0.2 22,906 0.3 54,749 0.6
Warehouse
lending 448,567 5.8 425,861 5.2 434,140 4.8
Consumer
loans 423,842 5.5 452,548 5.6 543,102 6.0
Non-real
estate
commercial 12,366 0.2 13,887 0.2 24,668 0.2
------ --- ------ --- ------ ---
Total loans
held for
investment $7,714,308 100.0% $8,133,497 100.0% $9,082,120 100.0%
========== ===== ========== ===== ========== =====
Allowance for Loan Losses
(Dollars in thousands)
(unaudited)
For the Three Months Ended For the Year Ended
-------------------------- ------------------
December 31, September 30, December 31, December 31, December 31,
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
(000's) (000's) (000's) (000's) (000's)
----- ----- ----- ----- -----
Beginning
Balance $(528,000) $(474,000) $(224,000) $(376,000) $(104,000)
Provision
for losses (94,950) (125,544) (176,255) (504,369) (343,963)
Charge-offs,
net of
recoveries
First
mortgage
loans 32,782 36,772 16,595 124,889 44,349
Second
mortgage
loans 10,597 7,222 1,681 41,806 2,980
Commercial
R/E loans 2,311 15,724 2,451 144,963 14,736
Construc-
tion
loans 434 951 1,703 2,887 1,872
Warehouse 614 - 169 1,111 1,001
Consumer
HELOC 10,160 9,711 790 34,986 4,140
Other
consumer
loans 1,391 638 420 3,788 1,390
Other 661 526 446 1,939 1,495
--- --- --- ----- -----
Charge-offs,
net of
recoveries 98,950 71,544 24,255 356,369 71,963
------ ------ ------ ------- ------
Ending
Balance $(524,000) $(528,000) $(376,000) $(524,000) $(376,000)
========= ========= ========= ========= =========
Composition of Allowance for Loan Losses
As of December 31, 2009
(In thousands)
General Specific
Description Reserves Reserves Total
----------- -------- -------- -----
First mortgage loans $235,030 $33,723 $268,753
Second mortgage loans 40,887 - 40,887
Commercial real estate loans 46,274 108,173 154,447
Construction loans 1,985 403 2,388
Warehouse lending 1,809 1,957 3,766
Consumer loans 40,232 410 40,642
Non-real estate commercial 825 2,151 2,976
Other and unallocated 10,141 - 10,141
------ --- ------
Total allowance for loan losses $377,183 $146,817 $524,000
Gain on Loan Sales and Securitizations
(Dollars in thousands)
(Unaudited)
For the Three Months Ended
--------------------------
December 31, September 30, December 31,
2009 (1) 2009 (1) 2008
------- ------- ----
(000's) bps (000's) bps (000's) bps
------- --- ------- --- ------- ---
Valuation gain
(loss):
Value of
interest rate
locks $(30,544) (43) $11,405 15 $68,397 120
Value of
forward sales 60,838 85 (36,537) (48) (82,436) (145)
Fair value
of loans AFS 106,153 149 151,911 200 - -
LOCOM
adjustments
on loans HFI 207 - 155 - 552 1
--- --- --- --- --- ---
Total valuation
gain (loss) 136,654 191 126,934 167 (13,487) (24)
Sales gains
(losses):
Marketing
gains 41,614 58 4,372 6 72,822 128
Pair off
losses (35,990) (50) (15,776) (22) (9,756) (17)
Sales
adjustments (37,269) (52) (4,108) (5) (30,729) (54)
Provision for
secondary
marketing
reserve (8,532) (12) (7,006) (9) (2,193) (4)
------ --- ------ --- ------ ---
Total sales
(losses) gains (40,177) (56) (22,518) (30) 30,144 53
------- --- ------- --- ------ ---
Net gain on
loan sales and
securitizations $96,477 135 $104,416 137 $16,657 29
======= === ======== === ======= ===
Total loan
sales and
securitizations $7,143,242 $7,606,304 $5,711,405
========== ========== ==========
(1) On January 1, 2009, the Company adopted fair value accounting for its
residential first mortgage loans held for sale and originated on or
after that date.
For the Twelve Months Ended December 31,
----------------------------------------
2009 (1) 2008
------- ----
(000's) bps (000's) bps
------- --- ------- ---
Valuation gains
(losses):
Value of interest
rate locks $(68,552) (21) $52,484 19
Value of forward
sales 89,020 27 (47,752) (15)
Fair value of
loans AFS 530,694 164 - -
LOCOM adjustments
on loans HFI (68) - (34,179) (12)
--- --- ------- ---
Total valuation
gain (loss) 551,094 170 (29,447) (8)
Sales gains (losses):
Marketing gains 144,813 45 377,464 136
Pair off gain (loss) (41,564) (13) (24,678) (9)
Sales adjustments (126,623) (39) (166,898) (62)
Provision for
secondary marketing
reserve (26,470) (8) (10,381) (4)
------- --- ------- ---
Total sales (losses)
gains (49,844) (15) 175,507 61
------- --- ------- ---
Net gain on loan sales
and securitizations $501,250 155 146,060 53
======== === ======= ===
Total loan sales and
securitizations $32,326,643 $27,787,884
=========== ===========
(1) On January 1, 2009, the Company adopted fair value accounting for its
residential first mortgage loans held for sale and originated on or
after that date.
Asset Quality
(Dollars in thousands)
(unaudited)
December 31, 2009 September 30, 2009 December 31, 2008
----------------- ------------------ -----------------
% of % of % of
Days delinquent Balance Total Balance Total Balance Total
--------------- ------- ----- ------- ----- ------- -----
30 $143,500 1.9% $118,597 1.5% $145,407 1.6%
60 87,625 1.1 100,078 1.2 111,404 1.5
90 + and matured
delinquent 1,071,636 13.9 1,055,358 13.0 722,301 7.7%
--------- ---- --------- ---- ------- ---
Total $1,302,761 16.9% $1,274,033 15.7% $979,112 10.8%
========== ==== ========== ==== ======== ====
Loans held
for investment $7,714,308 $8,133,497 $9,082,121
Non-Performing Loans and Assets
December 31, September 30, December 31,
2009 2009 2008
---- ---- ----
Non-performing loans $1,071,636 $1,055,358 $722,301
Real estate owned 176,968 164,898 109,297
Repurchased assets/non-
performing assets 45,697 26,601 16,454
------ ------ ------
Non-performing assets $1,294,301 $1,246,857 $848,052
========== ========== ========
Non-performing loans as
a percentage of loans
held for investment 13.89% 12.98% 7.95%
Non-performing assets
as a percentage of
total assets 9.24% 8.41% 5.97%
Deposit Portfolio
(Dollars in thousands)
(unaudited)
December 31, 2009 September 30, 2009 December 31, 2008
Description Balance Rate Balance Rate Balance Rate
----------- ------- ---- ------- ---- ------- ----
Demand
deposits $546,218 0.38% $471,847 0.30% $416,920 0.47%
Savings
deposits 724,278 0.73 660,786 1.22 407,501 2.24
Money
market
deposits 632,099 0.56 747,507 1.58 561,909 2.61
Certificates
of
deposits 3,552,090 2.94 3,819,351 3.41 3,967,985 3.94
--------- ---- --------- ---- --------- ----
Total
retail
deposits 5,454,685 2.12 5,699,491 2.66 5,354,315 3.39
Company
controlled
custodial
deposits 756,423 - 951,780 - 535,494 -
Municipal
deposits/
CDARS 620,235 0.64 650,666 0.79 597,638 2.84
Wholesale
deposits 1,947,126 2.57 1,232,031 3.56 1,353,558 4.41
--------- ---- --------- ---- --------- ----
Total
Deposits $8,778,469 1.93% $8,533,968 2.35% $7,841,005 3.30%
========== ===== ========== ===== ========== =====
Pre-tax, pre-credit-cost Income
(Non GAAP measure)
(Dollars in millions)
(Unaudited)
For the Three Months Ended
--------------------------
December 31, 2009 September 30, 2009 December 31, 2008
----------------- ------------------ -----------------
Loss before
tax provision /
benefit $(66.9) $(178.6) $(336.0)
Add back:
Provision for
loan losses 95.0 125.5 176.3
Asset resolution 26.9 26.8 16.4
Other than temporary
impairment on
investments AFS 6.7 2.9 62.4
Secondary marketing
reserve provision 35.8 27.6 19.7
Write down of
residual interests 16.2 50.7 (1.8)
Reserve increase for
reinsurance - 3.9 10.0
--- --- ----
Total credit-
related-costs: 180.6 237.4 283.0
----- ----- -----
Pre-tax, pre-credit-
cost income
(expense) $113.7 $58.8 $(53.0)
====== ===== ======
For the Twelve Months Ended
---------------------------
December 31, 2009 December 31, 2008
----------------- -----------------
Loss before tax provision / benefit $(441.7) $(423.4)
Add back:
Provision for loan losses 504.4 344.0
Asset resolution 96.6 46.2
Other than temporary impairment on
investments AFS 27.1 62.4
Secondary marketing reserve provision 102.1 27.5
Write down of residual interests 82.9 24.6
Reserve increase for reinsurance 24.8 14.8
---- ----
Total credit-related-costs: 837.9 519.5
----- -----
Pre-tax, pre-credit-cost income $396.2 $96.1
====== =====
SOURCE Flagstar Bancorp, Inc.
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