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."
About Flagstar
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.
Forward-Looking Statements
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
david.urban@flagstar.com
(248) 312-5970
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SOURCE Flagstar Bancorp, Inc.