TROY, Mich., March 12, 2018 /PRNewswire/ -- Flagstar Bancorp,
Inc. (NYSE: FBC) today reported that its wholly owned subsidiary
Flagstar Bank, FSB, has closed its previously announced transaction
to purchase the mortgage warehouse loan portfolio from Santander Bank, including approximately
$1.7 billion in mortgage warehouse
loan commitments. Terms of the transaction were not disclosed.
"We're delighted to welcome Santander's customers and employees
to Flagstar," said Alessandro
DiNello, president and chief executive officer of Flagstar
Bancorp, Inc. "This transaction combines two talented warehouse
teams dedicated to customer service, and the biggest winner is our
new, combined customer base that will now be dealing with the
fourth largest warehouse lender in the country. Customers can look
forward to custom-crafted solutions delivered by knowledgeable,
experienced warehouse lenders.
"The purchase also adds volume in an attractive asset class with
good spreads and very low credit risk. It's complementary to our
existing business, bringing relationships that average around
$40 million in commitments—four times
larger than our existing book. While the pricing is slightly
narrower than Flagstar's book, these loans typically have
approximately 50 percent longer days-on-line and so enhance our net
interest income. We plan to add the new business to our existing
platform."
The acquisition is expected to reduce the Company's Tier One
leverage ratio by approximately 40 basis points and should be
moderately accretive to 2018 earnings.
About Flagstar
Flagstar Bancorp, Inc. (NYSE: FBC) is a $16.9 billion savings and loan holding company
headquartered in Troy, Mich. Its
wholly owned subsidiary 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
89 retail locations in 29 states, representing the combined retail
branches of Flagstar Bank and its Opes Advisors mortgage division.
Flagstar is a leading national originator and servicer of mortgage
loans, handling payments and record keeping for $98 billion of home loans representing over
442,000 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. Factors
that could cause the Company's actual results to differ materially
from those described in the forward-looking statements can be 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). 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.