TROY, Mich., Dec. 26, 2017 /PRNewswire/ --
Key Highlights:
- One-time, non-cash charge of approximately $80 million, or $1.38 per diluted share, in fourth quarter 2017
with no significant impact to Tier 1 capital or liquidity.
- Estimated mid-teens percentage increase in FY2018 net income
and EPS based on First Call consensus estimate.
Flagstar Bancorp, Inc. (NYSE: FBC) today announced a one-time,
non-cash charge to the provision for income taxes of approximately
$80 million, or $1.38 per diluted share, resulting from new tax
legislation that required the revaluation of its deferred tax asset
at a lower corporate statutory rate. There was no significant
impact to the Company's regulatory capital ratios or liquidity.
"We're optimistic that tax reform is good news for the economy,"
said Alessandro DiNello, President
and Chief Executive Officer of Flagstar Bancorp, Inc. "We realized
a modest decline in our tangible equity ratio from the new tax
legislation, but expect a solid earnings benefit ahead.
"A lower corporate tax rate will provide a boost to earnings.
While longer term, we expect some of the tax savings may be lost to
competitive factors, we are encouraged that higher earnings, along
with expected regulatory capital relief, will accelerate our
capital formation."
About Flagstar
Flagstar Bancorp, Inc. (NYSE: FBC) is a $16.9 billion savings and loan holding company
headquartered in Troy, Mich.
Flagstar Bank, FSB, 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 95 retail locations in
27 states, representing the combined retail branches of Flagstar
and Opes Advisors mortgage division. Flagstar is a leading national
originator and servicer of mortgage loans, handling payments and
record keeping for $91 billion of
home loans representing 415,000 borrowers. For more information,
please visit flagstar.com.
Forward-Looking Statements
This communication 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 the
impact of judicial and regulatory interpretations of the
just-enacted tax legislation, as well as various other 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.
For further information
ANALYSTS: David Urban, Senior
Vice President & Director, Investor Relations, (248)
312-5970
MEDIA: Susan Bergesen,
Corporate Communications, (248) 312-6237
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SOURCE Flagstar Bancorp, Inc.