TROY, Mich., Jan. 21, 2021 /PRNewswire/ --
Key Highlights - Fourth Quarter 2020
- Net interest income grew by $9
million with lower deposit costs and higher warehouse
balances.
- Mortgage revenue was $232 million
as fallout adjusted lock volume and gain on sale margins stayed
strong.
- Asset quality remained solid with low levels of nonperforming
loans and an industry-leading coverage ratio.
- Tangible book value per share reached $38.80 at year-end, representing a 36 percent
increase for 2020.
Flagstar Bancorp, Inc. (NYSE: FBC), the holding company for
Flagstar Bank, today reported fourth quarter 2020 net income of
$154 million, or $2.83 per diluted share, compared to third
quarter 2020 net income of $222
million, or $3.88 per diluted
share and fourth quarter 2019 net income of $58 million, or $1.00 per diluted share.
"It was yet another outstanding quarter, capping off an
exceptionally successful year for Flagstar," said Alessandro DiNello, president and chief
executive officer of Flagstar Bancorp, Inc. "All of our business
segments contributed to produce earnings of $2.83 per share--75 percent of what we earned for
the full year of 2019."
"Banking was once again a standout, as net interest income
climbed $9 million to $189 million. And once again, our warehouse
business led the way, as we continued to grow the low-risk balances
this business generates. Our impressive performance in warehouse,
coupled with a concerted effort to reduce funding costs, resulted
in a flat net interest margin. In fact, net interest margin
actually expanded 4 basis points when excluding those loans with
government guarantees where we have the right to repurchase.
"We closed the quarter servicing and subservicing approximately
1.1 million loans, consistent with the prior quarter, despite
the ongoing pressure of elevated prepayments. This is a testament
to our business model, the quality of the service delivered, and
the strength of the relationships we have developed with our
subservicing partners.
"Our mortgage team continues to deliver, achieving revenues of
$232 million for the quarter. While
gain on sale margins did compress, we were pleased with how well
they held up, finishing at 1.93 percent for the quarter. The team's
all-out efforts--coupled with our diverse, multi-channel mortgage
platform--made it possible for us to deliver a quality experience
to customers all year long in the face of unprecedented
volumes.
"Overall, 2020 was one for the record books. The performance of
our mortgage and warehouse businesses was extraordinary, supported
by the consistent results we have come to expect from servicing.
Thanks to this success, we were positioned not only to secure an
investment grade rating from Moody's rating agency, but were also
able to execute a $150 million stock buyback.
"But the real story of the year was our employees. I could not
be more proud of the way they responded, and continue to respond,
to COVID-19. First, we had a business continuity plan in place and
ready to go, and second, our employees did a masterful job of
executing it. We've adapted to the change in our workplace and our
success is written in our results. With the momentum of a strong
year behind us and the power of a diversified franchise carrying us
forward, we believe we are well positioned for continued success in
2021."
|
Income Statement
Highlights
|
|
|
|
|
|
Three Months
Ended
|
|
December
31,
2020
|
September
30,
2020
|
June 30,
2020
|
March 31,
2020
|
December
31,
2019
|
|
(Dollars in millions,
except per share data)
|
|
Net interest
income
|
$
|
189
|
|
$
|
180
|
|
$
|
168
|
|
$
|
148
|
|
$
|
152
|
|
|
Provision for credit
losses
|
2
|
|
32
|
|
102
|
|
14
|
|
—
|
|
|
Noninterest
income
|
337
|
|
452
|
|
378
|
|
157
|
|
162
|
|
|
Noninterest
expense
|
319
|
|
305
|
|
296
|
|
235
|
|
245
|
|
|
Income before income
taxes
|
205
|
|
295
|
|
148
|
|
56
|
|
69
|
|
|
Provision for income
taxes
|
51
|
|
73
|
|
32
|
|
10
|
|
11
|
|
|
Net income
|
$
|
154
|
|
$
|
222
|
|
$
|
116
|
|
$
|
46
|
|
$
|
58
|
|
|
Income per
share:
|
|
|
|
|
|
|
Basic
|
$
|
2.86
|
|
$
|
3.90
|
|
$
|
2.04
|
|
$
|
0.80
|
|
$
|
1.01
|
|
|
Diluted
|
$
|
2.83
|
|
$
|
3.88
|
|
$
|
2.03
|
|
$
|
0.80
|
|
$
|
1.00
|
|
|
Key
Ratios
|
|
|
|
|
|
Three Months
Ended
|
|
December
31,
2020
|
September
30,
2020
|
June 30,
2020
|
March 31,
2020
|
December
31,
2019
|
|
Net interest
margin
|
2.78
|
%
|
2.78
|
%
|
2.86
|
%
|
2.81
|
%
|
2.91
|
%
|
|
Adjusted net interest
margin (2)
|
2.98
|
%
|
2.94
|
%
|
2.88
|
%
|
2.81
|
%
|
2.91
|
%
|
|
Return on average
assets
|
2.1
|
%
|
3.1
|
%
|
1.8
|
%
|
0.8
|
%
|
1.0
|
%
|
|
Return on average
common equity
|
27.6
|
%
|
41.5
|
%
|
23.5
|
%
|
9.8
|
%
|
12.7
|
%
|
|
Efficiency
ratio
|
60.8
|
%
|
48.3
|
%
|
54.3
|
%
|
77.1
|
%
|
78.2
|
%
|
|
HFI loan-to-deposit
ratio
|
74.5
|
%
|
75.9
|
%
|
76.7
|
%
|
74.9
|
%
|
76.5
|
%
|
|
Adjusted HFI
loan-to-deposit ratio (1)
|
69.8
|
%
|
74.8
|
%
|
85.4
|
%
|
86.3
|
%
|
84.6
|
%
|
|
|
|
(1)
|
Excludes warehouse
loans and custodial deposits. See Non-GAAP Reconciliation for
further information.
|
|
(2)
|
Excludes loans with
government guarantees available for repurchase. See Non-GAAP
Reconciliation for further information.
|
|
Average Balance
Sheet Highlights
|
|
|
|
|
|
|
|
Three Months
Ended
|
%
Change
|
|
December
31,
2020
|
September
30,
2020
|
June 30,
2020
|
March 31,
2020
|
December
31,
2019
|
Seq
|
Yr/Yr
|
|
(Dollars in
millions)
|
|
|
|
Average
interest-earning assets
|
$
|
27,100
|
|
$
|
25,738
|
|
$
|
23,692
|
|
$
|
21,150
|
|
$
|
20,708
|
|
5
|
%
|
31
|
%
|
|
Average loans
held-for-sale (LHFS)
|
5,672
|
|
5,602
|
|
5,645
|
|
5,248
|
|
5,199
|
|
1
|
%
|
9
|
%
|
|
Average loans
held-for-investment (LHFI)
|
15,703
|
|
14,839
|
|
13,596
|
|
11,823
|
|
12,168
|
|
6
|
%
|
29
|
%
|
|
Average total
deposits
|
21,068
|
|
19,561
|
|
17,715
|
|
15,795
|
|
15,904
|
|
8
|
%
|
32
|
%
|
Net Interest Income
Net interest income in the fourth quarter was $189 million, an increase of $9 million (5 percent) compared to the third
quarter. The increase was primarily driven by warehouse loan growth
and the impact of lower rates on deposit costs, which was partially
offset by lower yields on earning assets. Average earning assets
increased $1.4 billion, reflecting an
increase of $1.3 billion in average
total loans, primarily warehouse, partially offset by a
$0.3 billion decrease in average
investment securities.
The net interest margin in the fourth quarter was 2.78 percent,
flat to the prior quarter. Excluding the impact from the loans with
government guarantees that have not been repurchased and do not
accrue interest, adjusted net interest margin expanded 4 basis
points to 2.98 percent in the fourth quarter, compared to adjusted
net interest margin of 2.94 percent in the prior quarter. The
increase in the adjusted net interest margin was primarily driven
by an increase in higher yielding warehouse loans and lower rates
on deposits. Retail banking deposit rates decreased 18 basis points
driven by the expiration of promotional rates on some of our
savings deposits and the maturity of higher cost time deposits.
This improvement more than offset the impact of declining interest
rates in certain other categories of loans held-for-investment.
Loans held-for-investment averaged $15.7 billion for the fourth quarter,
increasing $0.9 billion (6 percent)
from the prior quarter. The increase was primarily driven by
$1.3 billion (22 percent) higher
average warehouse loan balances as we grew this business and took
advantage of the strong mortgage market. The result was partially
offset by $0.2 billion (5
percent) lower average consumer loans, primarily due to a decrease
in our residential first mortgage portfolio and $0.2 billion (12 percent) lower commercial and
industrial loans.
Average total deposits were $21.1
billion in the fourth quarter, increasing $1.5 billion (8 percent) from the third quarter.
Average custodial deposits increased $1.2
billion (16 percent) due to higher prepayments from
refinancing and average demand and savings deposits and government
deposits increased $0.5 billion (6
percent).
Provision for Credit Losses
The provision for credit losses was $2
million for the fourth quarter, as compared to $32 million for the third quarter 2020. Our
allowance for credit losses remained flat as compared to the
balance as of September 30, 2020, due
to continued economic uncertainty caused by COVID-19. We continue
to believe the economic recovery will be challenged by the COVID-19
pandemic for an extended period of time and significant uncertainty
remains related to distribution of the vaccines and government
stimulus, especially as it affects consumer loan forbearance and
the commercial real estate sector.
Noninterest Income
Noninterest income decreased $115
million to $337 million in the
fourth quarter, as compared to $452
million for the third quarter, primarily due to lower
mortgage revenues.
Fourth quarter net gain on loan sales decreased $114 million, to $232
million, as compared to $346
million in the third quarter 2020. The net gain on loan sale
margin decreased 38 basis points, to 1.93 percent for the fourth
quarter 2020, as compared to 2.31 percent for the third quarter
2020. Fallout-adjusted locks decreased $3
billion, or 20 percent, to $12.0 billion, reflecting seasonal holiday
factors which were partially offset by the continued strength of
the mortgage environment due to lower rates.
Lower mortgage rates continued to drive refinance activity
causing prepayment speeds to be elevated, resulting in a
$12 million decrease in the net
return on mortgage servicing rights in the fourth quarter 2020,
compared to a $12 million net return
for the third quarter.
Loan fees and charges increased $8
million, to $53 million for
the fourth quarter, compared to $45
million for the third quarter, primarily due to higher loss
mitigation and forbearance fee income on subserviced loans despite
a 9 percent decrease in mortgage closings.
|
Mortgage
Metrics
|
|
|
|
|
|
|
|
|
|
|
As of/Three months
ended
|
Change (% /
bps)
|
|
December
31,
2020
|
September
30,
2020
|
June 30,
2020
|
March 31,
2020
|
December
31,
2019
|
Seq
|
|
Yr/Yr
|
|
(Dollars in
millions)
|
|
|
|
|
|
Mortgage rate lock
commitments (fallout-adjusted) (1) (2)
|
$
|
12,000
|
|
$
|
15,000
|
|
$
|
13,800
|
|
$
|
11,200
|
|
$
|
8,200
|
|
(20)
|
%
|
47
|
%
|
|
Mortgage loans closed
(1)
|
$
|
13,100
|
|
$
|
14,400
|
|
$
|
12,200
|
|
$
|
8,600
|
|
$
|
9,300
|
|
(9)
|
%
|
41
|
%
|
|
Net margin on
mortgage rate lock commitments
(fallout-adjusted) (2)
|
1.93
|
%
|
2.31
|
%
|
2.19
|
%
|
0.80
|
%
|
1.23
|
%
|
(38)
|
|
70
|
|
|
Net gain on loan
sales
|
$
|
232
|
|
$
|
346
|
|
$
|
303
|
|
$
|
90
|
|
$
|
101
|
|
(33)
|
%
|
N/M
|
|
|
Net return (loss) on
mortgage servicing rights (MSR)
|
$
|
—
|
|
$
|
12
|
|
$
|
(8)
|
|
$
|
6
|
|
$
|
(3)
|
|
N/M
|
|
N/M
|
|
|
Gain on loan sales +
net return on the MSR
|
$
|
232
|
|
$
|
358
|
|
$
|
295
|
|
$
|
96
|
|
$
|
98
|
|
(35)
|
%
|
N/M
|
|
|
Loans serviced
(number of accounts - 000's) (3)
|
1,085
|
|
1,105
|
|
1,042
|
|
1,082
|
|
1,091
|
|
(2)
|
%
|
(1)
|
%
|
|
Capitalized value of
MSRs
|
0.86
|
%
|
0.85
|
%
|
0.87
|
%
|
0.95
|
%
|
1.21
|
%
|
1
|
|
(35)
|
|
|
N/M - Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Rounded to the nearest
hundred million
|
|
(2)
|
Fallout-adjusted
mortgage rate lock commitments are adjusted by a percentage of
mortgage loans in the pipeline that are not expected to close based
on previous historical experience and the level of interest
rates.
|
|
(3)
|
Includes loans serviced
for Flagstar's own loan portfolio, serviced for others, and
subserviced for others.
|
Noninterest Expense
Noninterest expense increased to $319
million for the fourth quarter, compared to $305 million for the third quarter. This increase
was primarily due to a $7 million
loss recognized on the early redemption of senior notes due
July 15, 2021 which will settle in
January, $3 million due to hiring in the mortgage and
servicing business to expand capacity, and an additional
$2 million was contributed to the Flagstar Foundation during
the quarter to further the community in light of the pandemic and
ongoing economic conditions.
Mortgage expenses were $155 million for the fourth quarter,
an increase of $7 million compared to the prior quarter. The
ratio of mortgage noninterest expense to closings – our mortgage
expense ratio – was 1.18 percent an increase of 16 basis points
quarter over quarter, primarily driven by efforts to expand
capacity and a higher retail channel mix.
The Company's efficiency ratio was 61 percent for the fourth
quarter, as compared to 48 percent for the third quarter, primarily
driven higher due to the extraordinary levels of gain on sale
margin in the third quarter.
Income Taxes
The fourth quarter provision for income taxes totaled
$51 million, with an effective tax
rate of 24.8 percent, compared to $73
million and an effective tax rate of 24.7 percent for the
third quarter. Our effective tax rate remained flat primarily due
to a non-recurring tax impact of $2
million from final sale of stock by a shareholder that
formerly held more than 50 percent of our outstanding shares.
Asset Quality
|
Credit Quality
Ratios
|
|
|
|
|
|
|
|
|
|
As of/Three Months
Ended
|
Change (% /
bps)
|
|
December
31,
2020
|
September
30,
2020
|
June 30,
2020
|
March 31,
2020
|
December
31,
2019
|
Seq
|
|
Yr/Yr
|
|
(Dollars in
millions)
|
|
|
|
|
|
Allowance for credit
losses (2)
|
$
|
280
|
|
$
|
280
|
|
$
|
250
|
|
$
|
152
|
|
$
|
110
|
|
—
|
%
|
N/M
|
|
|
Credit reserves to
LHFI
|
1.73
|
%
|
1.70
|
%
|
1.69
|
%
|
1.10
|
%
|
0.91
|
%
|
3
|
|
82
|
|
|
Credit reserves to
LHFI excluding warehouse
|
3.20
|
%
|
3.07
|
%
|
2.60
|
%
|
1.54
|
%
|
1.12
|
%
|
13
|
|
208
|
|
|
Charge-offs, net of
recoveries
|
$
|
2
|
|
$
|
2
|
|
$
|
3
|
|
$
|
2
|
|
$
|
3
|
|
—
|
%
|
(33)
|
%
|
|
Total nonperforming
LHFI and TDRs
|
$
|
57
|
|
$
|
45
|
|
$
|
33
|
|
$
|
29
|
|
$
|
26
|
|
27
|
%
|
119
|
%
|
|
Net charge-offs to
LHFI ratio (annualized)
|
0.04
|
%
|
0.05
|
%
|
0.11
|
%
|
0.08
|
%
|
0.10
|
%
|
(1)
|
|
(6)
|
|
|
Ratio of
nonperforming LHFI and TDRs to LHFI
|
0.34
|
%
|
0.28
|
%
|
0.22
|
%
|
0.21
|
%
|
0.21
|
%
|
6
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs/(recoveries) to LHFI ratio (annualized) by loan type
(1):
|
|
|
|
|
|
Residential first
mortgage
|
0.11
|
%
|
0.07
|
%
|
0.26
|
%
|
0.08
|
%
|
0.08
|
%
|
4
|
|
3
|
|
|
Home equity and other
consumer
|
0.06
|
%
|
0.23
|
%
|
0.28
|
%
|
0.28
|
%
|
0.49
|
%
|
(17)
|
|
(43)
|
|
|
Commercial real
estate
|
—
|
%
|
(0.01)
|
%
|
0.01
|
%
|
(0.01)
|
%
|
—
|
%
|
1
|
|
—
|
|
|
Commercial and
industrial
|
0.21
|
%
|
0.06
|
%
|
0.08
|
%
|
0.09
|
%
|
0.07
|
%
|
15
|
|
14
|
|
|
N/M - Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes loans
carried under the fair value option.
|
|
(2)
|
Includes the
allowance for loan losses and the reserve on unfunded
commitments.
|
The allowance for credit losses was $280 million and
covered 1.73 percent of loans held-for-investment at
December 31, 2020, a 3 basis point increase from
September 30, 2020. Excluding warehouse loans, the allowance
coverage ratio was 3.20 percent, a 13 basis point increase from
September 30, 2020.
Net charge-offs in the fourth quarter 2020 remained low at
$2 million, or 4 basis points of LHFI, compared to
$2 million, or 5 basis points in the prior quarter.
Nonperforming loans were $57
million and our ratio of nonperforming loans to loans
held-for-investment was 34 basis points at December 31, 2020,
a 6 basis point increase compared to September 30, 2020. The
increase was due to two commercial borrowers totaling $7 million in exposure that were placed on
nonaccrual during the quarter. At December 31, 2020, early
stage loan delinquencies totaled $36
million, or 22 basis points, of total loans, compared
to $13 million, or 8 basis points, at
September 30, 2020.
Capital
|
Capital Ratios
(Bancorp)
|
|
Change (% /
bps)
|
|
December
31,
2020
|
September
30,
2020
|
June 30,
2020
|
March 31,
2020
|
December
31,
2019
|
Seq
|
|
Yr/Yr
|
|
Tier 1 leverage (to
adj. avg. total assets)
|
7.71
|
%
|
8.04
|
%
|
7.76
|
%
|
8.09
|
%
|
7.57
|
%
|
(33)
|
|
14
|
|
|
Tier 1 common equity
(to RWA)
|
9.15
|
%
|
9.21
|
%
|
9.11
|
%
|
9.17
|
%
|
9.32
|
%
|
(6)
|
|
(17)
|
|
|
Tier 1 capital (to
RWA)
|
10.23
|
%
|
10.31
|
%
|
10.33
|
%
|
10.52
|
%
|
10.83
|
%
|
(8)
|
|
(60)
|
|
|
Total capital (to
RWA)
|
11.89
|
%
|
11.29
|
%
|
11.32
|
%
|
11.18
|
%
|
11.52
|
%
|
60
|
|
37
|
|
|
Tangible common
equity to asset ratio (1)
|
6.58
|
%
|
6.90
|
%
|
6.58
|
%
|
6.25
|
%
|
6.95
|
%
|
(32)
|
|
(37)
|
|
|
Tangible book value
per share (1)
|
$
|
38.80
|
|
$
|
35.60
|
|
$
|
31.74
|
|
$
|
29.52
|
|
$
|
28.57
|
|
9
|
%
|
36
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
See Non-GAAP
Reconciliation for further information.
|
The Company maintained a solid capital position with regulatory
ratios above current regulatory quantitative guidelines for "well
capitalized" institutions. The capital ratios are impacted by a 100
percent risk-weighting of the warehouse loan portfolio – the
largest component of the Company's held-for-investment
portfolio. Adjusting the risk-weighting of warehouse loans to
50 percent, because of the historically low level of losses from
this loan portfolio and the fact that the portfolio is fully
collateralized with assets that would receive a 50 percent risk
weighting, the Company would have had a Tier 1 common equity ratio
of 10.77 percent and a total risk-based capital ratio of 14.00
percent at December 31, 2020.
Importantly, tangible book value per share grew to $38.80, up $3.20
from last quarter and an increase of $10.23, or 36 percent, in 2020.
Earnings Conference Call
As previously announced, the Company's fourth quarter 2020
earnings call will be held Thursday, January 21, 2021 at
11 a.m. (ET).
To join the call, please dial (888) 204-4368 toll free or (856)
344-9299 and use passcode 3619451. Please call at least 10 minutes
before the conference is scheduled to begin. A replay will be
available for five business days by calling (888) 203-1112 toll
free or (719) 457-0820, and using passcode 3619451.
The conference call will also be available as a live audiocast
on the Investor Relations section of flagstar.com, where it will be
archived and available for replay and download. The slide
presentation accompanying the conference call will be posted on the
site.
About Flagstar
Flagstar Bancorp, Inc. (NYSE: FBC) is a $31.0 billion savings and loan holding
company headquartered in Troy,
Mich. Flagstar Bank, FSB, provides commercial, small
business, and consumer banking services through 158 branches in
Michigan, Indiana, California, Wisconsin and Ohio. It also provides home loans through a
wholesale network of brokers and correspondents in all 50 states,
as well as 103 retail locations in 28 states, representing the
combined retail branches of Flagstar and its Opes Advisors mortgage
division. Flagstar is a leading national originator and servicer of
mortgage and other consumer loans, handling payments and record
keeping for $227 billion of loans representing almost 1.1
million borrowers. For more information, please visit
flagstar.com.
Use of Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this
news release includes certain non-GAAP financial measures. The
Company believes these non-GAAP financial measures provide
additional information that is useful to investors in helping to
understand the capital requirements Flagstar will face in the
future and underlying performance and trends of Flagstar.
Non-GAAP financial measures have inherent limitations. Readers
should be aware of these limitations and should be cautious with
respect to the use of such measures. To compensate for these
limitations, we use non-GAAP measures as comparative tools,
together with GAAP measures, to assist in the evaluation of our
operating performance or financial condition. Also, we ensure that
these measures are calculated using the appropriate GAAP or
regulatory components in their entirety and that they are computed
in a manner intended to facilitate consistent period-to-period
comparisons. Flagstar's method of calculating these non-GAAP
measures may differ from methods used by other companies. These
non-GAAP measures should not be considered in isolation or as a
substitute for those financial measures prepared in accordance with
GAAP or in-effect regulatory requirements.
Where non-GAAP financial measures are used, the most directly
comparable GAAP or regulatory financial measure, as well as the
reconciliation to the most directly comparable GAAP or regulatory
financial measure, can be found in this news release. Additional
discussion of the use of non-GAAP measures can also be found in
conference call slides, the Form 8-K Current Report related to this
news release and in periodic Flagstar reports filed with the U.S.
Securities and Exchange Commission. These documents can all be
found on the Company's website at flagstar.com.
Forward-Looking Statements
This earnings release 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. The Company's actual
results could differ materially from those described in the
forward-looking statements depending upon various 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). The COVID-19 pandemic is adversely
affecting us, our customers, counterparties, employees, and
third-party service providers, and the ultimate extent of the
impacts on our business, financial position, results of operations,
liquidity, and prospects is uncertain. 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.
|
Flagstar Bancorp,
Inc.
Consolidated Statements of Financial
Condition
(Dollars in millions)
(Unaudited)
|
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
|
Assets
|
|
|
|
|
|
|
Cash
|
$
|
251
|
|
|
$
|
194
|
|
|
$
|
220
|
|
|
Interest-earning
deposits
|
372
|
|
|
86
|
|
|
206
|
|
|
Total cash and cash
equivalents
|
623
|
|
|
280
|
|
|
426
|
|
|
Investment securities
available-for-sale
|
1,944
|
|
|
2,165
|
|
|
2,116
|
|
|
Investment securities
held-to-maturity
|
377
|
|
|
440
|
|
|
598
|
|
|
Loans
held-for-sale
|
7,098
|
|
|
5,372
|
|
|
5,258
|
|
|
Loans
held-for-investment
|
16,227
|
|
|
16,476
|
|
|
12,129
|
|
|
Loans with government
guarantees
|
2,516
|
|
|
2,500
|
|
|
736
|
|
|
Less: allowance for
loan losses
|
(252)
|
|
|
(255)
|
|
|
(107)
|
|
|
Total loans
held-for-investment and loans with government guarantees,
net
|
18,491
|
|
|
18,721
|
|
|
12,758
|
|
|
Mortgage servicing
rights
|
329
|
|
|
323
|
|
|
291
|
|
|
Federal Home Loan Bank
stock
|
377
|
|
|
377
|
|
|
303
|
|
|
Premises and
equipment, net
|
392
|
|
|
410
|
|
|
416
|
|
|
Goodwill and
intangible assets
|
157
|
|
|
160
|
|
|
170
|
|
|
Other
assets
|
1,250
|
|
|
1,228
|
|
|
930
|
|
|
Total
assets
|
$
|
31,038
|
|
|
$
|
29,476
|
|
|
$
|
23,266
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
$
|
9,458
|
|
|
$
|
9,429
|
|
|
$
|
5,467
|
|
|
Interest-bearing
deposits
|
10,515
|
|
|
10,516
|
|
|
9,679
|
|
|
Total
deposits
|
19,973
|
|
|
19,945
|
|
|
15,146
|
|
|
Short-term Federal
Home Loan Bank advances and other
|
3,900
|
|
|
2,226
|
|
|
4,165
|
|
|
Long-term Federal Home
Loan Bank advances
|
1,200
|
|
|
1,200
|
|
|
650
|
|
|
Other long-term
debt
|
641
|
|
|
493
|
|
|
496
|
|
|
GNMA repurchase
options
|
1,851
|
|
|
1,783
|
|
|
70
|
|
|
Other
liabilities
|
1,272
|
|
|
1,634
|
|
|
951
|
|
|
Total
liabilities
|
28,837
|
|
|
27,281
|
|
|
21,478
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
Common
stock
|
1
|
|
|
1
|
|
|
1
|
|
|
Additional paid in
capital
|
1,346
|
|
|
1,493
|
|
|
1,483
|
|
|
Accumulated other
comprehensive income
|
47
|
|
|
46
|
|
|
1
|
|
|
Retained
earnings
|
807
|
|
|
655
|
|
|
303
|
|
|
Total stockholders'
equity
|
2,201
|
|
|
2,195
|
|
|
1,788
|
|
|
Total liabilities and
stockholders' equity
|
$
|
31,038
|
|
|
$
|
29,476
|
|
|
$
|
23,266
|
|
|
Flagstar Bancorp,
Inc.
Condensed Consolidated Statements of
Operations
(Dollars in millions, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
Change compared
to:
|
|
Three Months
Ended
|
|
3Q20
|
|
4Q2019
|
|
December 31,
2020
|
September 30,
2020
|
June 30,
2020
|
March 31,
2020
|
December 31,
2019
|
|
Amount
|
Percent
|
|
Amount
|
Percent
|
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
income
|
$
|
212
|
|
$
|
206
|
|
$
|
201
|
|
$
|
201
|
|
$
|
213
|
|
|
$
|
6
|
|
3
|
%
|
|
$
|
(1)
|
|
—
|
%
|
|
Total interest
expense
|
23
|
|
26
|
|
33
|
|
53
|
|
61
|
|
|
(3)
|
|
(12)
|
%
|
|
(38)
|
|
(62)
|
%
|
|
Net interest
income
|
189
|
|
180
|
|
168
|
|
148
|
|
152
|
|
|
9
|
|
5
|
%
|
|
37
|
|
24
|
%
|
|
Provision for credit
losses
|
2
|
|
32
|
|
102
|
|
14
|
|
—
|
|
|
(30)
|
|
(94)
|
%
|
|
2
|
|
N/M
|
|
Net interest income
after provision for credit losses
|
187
|
|
148
|
|
66
|
|
134
|
|
152
|
|
|
39
|
|
26
|
%
|
|
35
|
|
23
|
%
|
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain on loan
sales
|
232
|
|
346
|
|
303
|
|
90
|
|
101
|
|
|
(114)
|
|
(33)
|
%
|
|
131
|
|
N/M
|
|
Loan fees and
charges
|
53
|
|
45
|
|
41
|
|
26
|
|
30
|
|
|
8
|
|
18
|
%
|
|
23
|
|
77
|
%
|
|
Net return (loss) on
the mortgage servicing rights
|
—
|
|
12
|
|
(8)
|
|
6
|
|
(3)
|
|
|
(12)
|
|
N/M
|
|
3
|
|
N/M
|
|
Loan administration
income
|
25
|
|
26
|
|
21
|
|
12
|
|
8
|
|
|
(1)
|
|
(4)
|
%
|
|
17
|
|
N/M
|
|
Deposit fees and
charges
|
8
|
|
8
|
|
7
|
|
9
|
|
10
|
|
|
—
|
|
—
|
%
|
|
(2)
|
|
(20)
|
%
|
|
Other noninterest
income
|
19
|
|
15
|
|
14
|
|
14
|
|
16
|
|
|
4
|
|
27
|
%
|
|
3
|
|
19
|
%
|
|
Total noninterest
income
|
337
|
|
452
|
|
378
|
|
157
|
|
162
|
|
|
(115)
|
|
(25)
|
%
|
|
175
|
|
108
|
%
|
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
125
|
|
123
|
|
116
|
|
102
|
|
102
|
|
|
2
|
|
2
|
%
|
|
23
|
|
23
|
%
|
|
Occupancy and
equipment
|
44
|
|
47
|
|
44
|
|
41
|
|
43
|
|
|
(3)
|
|
(6)
|
%
|
|
1
|
|
2
|
%
|
|
Commissions
|
70
|
|
72
|
|
61
|
|
29
|
|
35
|
|
|
(2)
|
|
(3)
|
%
|
|
35
|
|
N/M
|
|
Loan processing
expense
|
29
|
|
24
|
|
25
|
|
20
|
|
20
|
|
|
5
|
|
21
|
%
|
|
9
|
|
45
|
%
|
|
Legal and professional
expense
|
11
|
|
9
|
|
5
|
|
6
|
|
9
|
|
|
2
|
|
22
|
%
|
|
2
|
|
22
|
%
|
|
Federal insurance
premiums
|
5
|
|
6
|
|
7
|
|
6
|
|
6
|
|
|
(1)
|
|
(17)
|
%
|
|
(1)
|
|
(17)
|
%
|
|
Intangible asset
amortization
|
3
|
|
3
|
|
4
|
|
3
|
|
4
|
|
|
—
|
|
—
|
%
|
|
(1)
|
|
(25)
|
%
|
|
Other noninterest
expense
|
32
|
|
21
|
|
34
|
|
28
|
|
26
|
|
|
11
|
|
52
|
%
|
|
6
|
|
23
|
%
|
|
Total noninterest
expense
|
319
|
|
305
|
|
296
|
|
235
|
|
245
|
|
|
14
|
|
5
|
%
|
|
74
|
|
30
|
%
|
|
Income before income
taxes
|
205
|
|
295
|
|
148
|
|
56
|
|
69
|
|
|
(90)
|
|
(31)
|
%
|
|
136
|
|
197
|
%
|
|
Provision for income
taxes
|
51
|
|
73
|
|
32
|
|
10
|
|
11
|
|
|
(22)
|
|
(30)
|
%
|
|
40
|
|
N/M
|
|
Net income
|
$
|
154
|
|
$
|
222
|
|
$
|
116
|
|
$
|
46
|
|
$
|
58
|
|
|
$
|
(68)
|
|
(31)
|
%
|
|
$
|
96
|
|
166
|
%
|
|
Income per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
2.86
|
|
$
|
3.90
|
|
$
|
2.04
|
|
$
|
0.80
|
|
$
|
1.01
|
|
|
$
|
(1.04)
|
|
(27)
|
%
|
|
$
|
1.85
|
|
183
|
%
|
|
Diluted
|
$
|
2.83
|
|
$
|
3.88
|
|
$
|
2.03
|
|
$
|
0.80
|
|
$
|
1.00
|
|
|
$
|
(1.05)
|
|
(27)
|
%
|
|
$
|
1.83
|
|
183
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared
|
$
|
0.05
|
|
$
|
0.05
|
|
$
|
0.05
|
|
$
|
0.05
|
|
$
|
0.04
|
|
|
$
|
—
|
|
—
|
%
|
|
$
|
0.01
|
|
25
|
%
|
|
N/M - Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
Flagstar Bancorp,
Inc.
Condensed Consolidated Statements of
Operations
(Dollars in millions, except per share data)
(Unaudited)
|
|
|
Twelve Months
Ended
|
|
Change
|
|
December
31,
2020
|
|
December
31,
2019
|
|
Amount
|
Percent
|
|
Interest
Income
|
|
|
|
|
|
|
|
Total interest
income
|
$
|
819
|
|
|
$
|
794
|
|
|
$
|
25
|
|
3
|
%
|
|
Total interest
expense
|
134
|
|
|
232
|
|
|
(98)
|
|
(42)
|
%
|
|
Net interest
income
|
685
|
|
|
562
|
|
|
123
|
|
22
|
%
|
|
Provision for credit
losses
|
149
|
|
|
18
|
|
|
131
|
|
N/M
|
|
Net interest income
after provision for credit losses
|
536
|
|
|
544
|
|
|
(8)
|
|
(1)
|
%
|
|
Noninterest
Income
|
|
|
|
|
|
|
|
Net gain on loan
sales
|
971
|
|
|
335
|
|
|
636
|
|
N/M
|
|
Loan fees and
charges
|
165
|
|
|
100
|
|
|
65
|
|
65
|
%
|
|
Net return on the
mortgage servicing rights
|
10
|
|
|
6
|
|
|
4
|
|
67
|
%
|
|
Loan administration
income
|
84
|
|
|
30
|
|
|
54
|
|
N/M
|
|
Deposit fees and
charges
|
32
|
|
|
38
|
|
|
(6)
|
|
(16)
|
%
|
|
Other noninterest
income
|
63
|
|
|
101
|
|
|
(38)
|
|
(38)
|
%
|
|
Total noninterest
income
|
1,325
|
|
|
610
|
|
|
715
|
|
117
|
%
|
|
Noninterest
Expense
|
|
|
|
|
|
|
|
Compensation and
benefits
|
466
|
|
|
377
|
|
|
89
|
|
24
|
%
|
|
Occupancy and
equipment
|
176
|
|
|
161
|
|
|
15
|
|
9
|
%
|
|
Commissions
|
232
|
|
|
111
|
|
|
121
|
|
N/M
|
|
Loan processing
expense
|
98
|
|
|
80
|
|
|
18
|
|
23
|
%
|
|
Legal and professional
expense
|
31
|
|
|
27
|
|
|
4
|
|
15
|
%
|
|
Federal insurance
premiums
|
24
|
|
|
20
|
|
|
4
|
|
20
|
%
|
|
Intangible asset
amortization
|
13
|
|
|
15
|
|
|
(2)
|
|
(13)
|
%
|
|
Other noninterest
expense
|
117
|
|
|
97
|
|
|
20
|
|
21
|
%
|
|
Total noninterest
expense
|
1,157
|
|
|
888
|
|
|
269
|
|
30
|
%
|
|
Income before income
taxes
|
704
|
|
|
266
|
|
|
438
|
|
165
|
%
|
|
Provision for income
taxes
|
166
|
|
|
48
|
|
|
118
|
|
N/M
|
|
Net income
|
$
|
538
|
|
|
$
|
218
|
|
|
$
|
320
|
|
147
|
%
|
|
Income per
share
|
|
|
|
|
|
|
|
Basic
|
$
|
9.59
|
|
|
$
|
3.85
|
|
|
$
|
5.74
|
|
149
|
%
|
|
Diluted
|
$
|
9.52
|
|
|
$
|
3.80
|
|
|
$
|
5.72
|
|
151
|
%
|
|
|
|
|
|
|
|
|
Cash dividends
declared
|
$
|
0.20
|
|
|
$
|
0.16
|
|
|
$
|
0.04
|
|
25
|
%
|
|
N/M - Not
meaningful
|
|
|
|
|
|
|
|
Flagstar Bancorp,
Inc.
Summary of Selected Consolidated Financial and
Statistical Data
(Dollars in millions, except share
data)
(Unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2020
|
September
30,
2020
|
December 31,
2019
|
|
December 31,
2020
|
December 31,
2019
|
|
Selected Mortgage
Statistics (1):
|
|
|
|
|
|
|
|
Mortgage rate lock
commitments (fallout-adjusted) (2)
|
$
|
12,000
|
|
$
|
15,000
|
|
$
|
8,200
|
|
|
$
|
52,000
|
|
$
|
32,300
|
|
|
Mortgage loans
closed
|
$
|
13,100
|
|
$
|
14,400
|
|
$
|
9,300
|
|
|
$
|
48,300
|
|
$
|
32,700
|
|
|
Mortgage loans sold
and securitized
|
$
|
12,000
|
|
$
|
14,500
|
|
$
|
8,100
|
|
|
$
|
46,900
|
|
$
|
30,300
|
|
|
Selected
Ratios:
|
|
|
|
|
|
|
|
Interest rate spread
(3)
|
2.44
|
%
|
2.44
|
%
|
2.39
|
%
|
|
2.40
|
%
|
2.52
|
%
|
|
Net interest
margin
|
2.78
|
%
|
2.78
|
%
|
2.91
|
%
|
|
2.80
|
%
|
3.05
|
%
|
|
Net margin on loans
sold and securitized
|
1.92
|
%
|
2.39
|
%
|
1.24
|
%
|
|
2.07
|
%
|
1.10
|
%
|
|
Return on average
assets
|
2.08
|
%
|
3.15
|
%
|
0.99
|
%
|
|
2.00
|
%
|
1.05
|
%
|
|
Adjusted return on
average assets (4) (5)
|
2.08
|
%
|
3.15
|
%
|
0.99
|
%
|
|
2.00
|
%
|
0.96
|
%
|
|
Return on average
common equity
|
27.58
|
%
|
41.54
|
%
|
12.69
|
%
|
|
26.21
|
%
|
12.84
|
%
|
|
Return on average
tangible common equity (5)
|
30.13
|
%
|
45.42
|
%
|
14.76
|
%
|
|
29.00
|
%
|
15.15
|
%
|
|
Adjusted return on
average tangible common equity (4) (5)
|
30.13
|
%
|
45.42
|
%
|
14.76
|
%
|
|
29.00
|
%
|
13.87
|
%
|
|
Efficiency
ratio
|
60.8
|
%
|
48.3
|
%
|
78.2
|
%
|
|
57.6
|
%
|
75.8
|
%
|
|
Common
equity-to-assets ratio (average for the period)
|
7.54
|
%
|
7.57
|
%
|
7.83
|
%
|
|
7.63
|
%
|
8.20
|
%
|
|
Average
Balances:
|
|
|
|
|
|
|
|
Average
interest-earning assets
|
$
|
27,100
|
|
$
|
25,738
|
|
$
|
20,708
|
|
|
$
|
24,431
|
|
$
|
18,453
|
|
|
Average
interest-bearing liabilities
|
$
|
13,782
|
|
$
|
14,281
|
|
$
|
14,208
|
|
|
$
|
14,413
|
|
$
|
13,130
|
|
|
Average stockholders'
equity
|
$
|
2,235
|
|
$
|
2,141
|
|
$
|
1,803
|
|
|
$
|
2,052
|
|
$
|
1,695
|
|
|
|
|
(1)
|
Rounded to nearest
hundred million.
|
|
(2)
|
Fallout-adjusted
mortgage rate lock commitments are adjusted by a percentage of
mortgage loans in the pipeline that are not expected to close based
on previous historical experience and the level of interest
rates.
|
|
(3)
|
Interest rate spread
is the difference between rate of interest earned on
interest-earning assets and rate of interest paid on
interest-bearing liabilities.
|
|
(4)
|
See Non-GAAP
Reconciliation for further information.
|
|
(5)
|
Excludes goodwill,
intangible assets and the associated amortization. See Non-GAAP
Reconciliation for further information.
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
|
Selected
Statistics:
|
|
|
|
|
|
|
Book value per common
share
|
$
|
41.79
|
|
|
$
|
38.41
|
|
|
$
|
31.57
|
|
|
Tangible book value
per share (1)
|
$
|
38.80
|
|
|
$
|
35.60
|
|
|
$
|
28.57
|
|
|
Number of common
shares outstanding
|
52,656,067
|
|
|
57,150,470
|
|
|
56,631,236
|
|
|
Number of FTE
employees
|
5,214
|
|
|
4,871
|
|
|
4,453
|
|
|
Number of bank
branches
|
158
|
|
|
160
|
|
|
160
|
|
|
Ratio of nonperforming
assets to total assets (2)
|
0.21
|
%
|
|
0.17
|
%
|
|
0.15
|
%
|
|
Common
equity-to-assets ratio
|
7.09
|
%
|
|
7.45
|
%
|
|
7.68
|
%
|
|
MSR Key Statistics
and Ratios:
|
|
|
|
|
|
|
Weighted average
service fee (basis points)
|
34.3
|
|
35.0
|
|
|
39.7
|
|
|
Capitalized value of
mortgage servicing rights
|
0.86
|
%
|
|
0.85
|
%
|
|
1.21
|
%
|
|
|
|
(1)
|
Excludes goodwill and
intangibles. See Non-GAAP Reconciliation for further
information.
|
|
(2)
|
Ratio excludes
LHFS.
|
|
Average Balances,
Yields and Rates
(Dollars in millions)
(Unaudited)
|
|
|
Three Months
Ended
|
|
December 31,
2020
|
|
September 30,
2020
|
|
December 31,
2019
|
|
Average
Balance
|
Interest
|
Annualized
Yield/Rate
|
|
Average
Balance
|
Interest
|
Annualized
Yield/Rate
|
|
Average
Balance
|
Interest
|
Annualized
Yield/Rate
|
|
Interest-Earning
Assets
|
|
|
Loans
held-for-sale
|
$
|
5,672
|
|
$
|
42
|
|
2.99%
|
|
$
|
5,602
|
|
$
|
45
|
|
3.21%
|
|
$
|
5,199
|
|
$
|
51
|
|
3.92%
|
|
Loans
held-for-investment
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential first
mortgage
|
2,353
|
|
19
|
|
3.23%
|
|
2,584
|
|
21
|
|
3.24%
|
|
3,215
|
|
30
|
|
3.60%
|
|
Home equity
|
890
|
|
8
|
|
3.69%
|
|
951
|
|
9
|
|
3.77%
|
|
989
|
|
12
|
|
4.86%
|
|
Other
|
1,001
|
|
13
|
|
5.15%
|
|
950
|
|
13
|
|
5.28%
|
|
728
|
|
11
|
|
5.97%
|
|
Total consumer
loans
|
4,244
|
|
40
|
|
3.78%
|
|
4,485
|
|
43
|
|
3.78%
|
|
4,932
|
|
53
|
|
4.20%
|
|
Commercial real
estate
|
3,064
|
|
27
|
|
3.40%
|
|
3,007
|
|
27
|
|
3.47%
|
|
2,763
|
|
34
|
|
4.91%
|
|
Commercial and
industrial
|
1,447
|
|
13
|
|
3.55%
|
|
1,650
|
|
14
|
|
3.25%
|
|
1,726
|
|
21
|
|
4.80%
|
|
Warehouse
lending
|
6,948
|
|
71
|
|
3.99%
|
|
5,697
|
|
56
|
|
3.92%
|
|
2,747
|
|
33
|
|
4.61%
|
|
Total commercial
loans
|
11,459
|
|
111
|
|
3.78%
|
|
10,354
|
|
97
|
|
3.68%
|
|
7,236
|
|
88
|
|
4.77%
|
|
Total loans
held-for-investment
|
15,703
|
|
151
|
|
3.78%
|
|
14,839
|
|
140
|
|
3.71%
|
|
12,168
|
|
141
|
|
4.54%
|
|
Loans with government
guarantees
|
2,478
|
|
5
|
|
0.73%
|
|
2,122
|
|
5
|
|
0.89%
|
|
678
|
|
4
|
|
2.16%
|
|
Investment
securities
|
2,493
|
|
14
|
|
2.27%
|
|
2,807
|
|
16
|
|
2.29%
|
|
2,511
|
|
16
|
|
2.49%
|
|
Interest-earning
deposits
|
754
|
|
—
|
|
0.11%
|
|
368
|
|
—
|
|
0.11%
|
|
152
|
|
1
|
|
2.26%
|
|
Total interest-earning
assets
|
27,100
|
|
$
|
212
|
|
3.09%
|
|
25,738
|
|
$
|
206
|
|
3.16%
|
|
20,708
|
|
$
|
213
|
|
4.04%
|
|
Other
assets
|
2,537
|
|
|
|
|
2,539
|
|
|
|
|
2,328
|
|
|
|
|
Total
assets
|
$
|
29,637
|
|
|
|
|
$
|
28,277
|
|
|
|
|
$
|
23,036
|
|
|
|
|
Interest-Bearing
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
$
|
1,842
|
|
$
|
—
|
|
0.07%
|
|
$
|
1,824
|
|
$
|
—
|
|
0.09%
|
|
$
|
1,448
|
|
$
|
3
|
|
0.70%
|
|
Savings
deposits
|
3,847
|
|
2
|
|
0.20%
|
|
3,675
|
|
3
|
|
0.34%
|
|
3,335
|
|
10
|
|
1.19%
|
|
Money market
deposits
|
693
|
|
—
|
|
0.07%
|
|
733
|
|
—
|
|
0.09%
|
|
700
|
|
—
|
|
0.35%
|
|
Certificates of
deposit
|
1,415
|
|
5
|
|
1.18%
|
|
1,672
|
|
8
|
|
1.62%
|
|
2,459
|
|
15
|
|
2.37%
|
|
Total retail
deposits
|
7,797
|
|
7
|
|
0.33%
|
|
7,904
|
|
11
|
|
0.53%
|
|
7,942
|
|
28
|
|
1.39%
|
|
Government
deposits
|
1,579
|
|
1
|
|
0.26%
|
|
1,403
|
|
1
|
|
0.35%
|
|
1,192
|
|
4
|
|
1.39%
|
|
Wholesale deposits and
other
|
1,010
|
|
4
|
|
1.69%
|
|
953
|
|
4
|
|
1.77%
|
|
666
|
|
4
|
|
2.36%
|
|
Total interest-bearing
deposits
|
10,386
|
|
12
|
|
0.46%
|
|
10,260
|
|
16
|
|
0.62%
|
|
9,800
|
|
36
|
|
1.46%
|
|
Short-term FHLB
advances and other
|
1,598
|
|
1
|
|
0.20%
|
|
2,328
|
|
2
|
|
0.20%
|
|
3,262
|
|
15
|
|
1.74%
|
|
Long-term FHLB
advances
|
1,200
|
|
3
|
|
1.03%
|
|
1,200
|
|
3
|
|
1.03%
|
|
650
|
|
3
|
|
1.43%
|
|
Other long-term
debt
|
598
|
|
7
|
|
4.47%
|
|
493
|
|
5
|
|
4.52%
|
|
496
|
|
7
|
|
5.45%
|
|
Total interest-bearing
liabilities
|
13,782
|
|
23
|
|
0.65%
|
|
14,281
|
|
26
|
|
0.72%
|
|
14,208
|
|
61
|
|
1.65%
|
|
Noninterest-bearing
deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail deposits and
other
|
2,155
|
|
|
|
|
1,954
|
|
|
|
|
1,332
|
|
|
|
|
Custodial deposits
(1)
|
8,527
|
|
|
|
|
7,347
|
|
|
|
|
4,772
|
|
|
|
|
Total
noninterest-bearing deposits
|
10,682
|
|
|
|
|
9,301
|
|
|
|
|
6,104
|
|
|
|
|
Other
liabilities
|
2,938
|
|
|
|
|
2,554
|
|
|
|
|
921
|
|
|
|
|
Stockholders'
equity
|
2,235
|
|
|
|
|
2,141
|
|
|
|
|
1,803
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
29,637
|
|
|
|
|
$
|
28,277
|
|
|
|
|
$
|
23,036
|
|
|
|
|
Net interest-earning
assets
|
$
|
13,318
|
|
|
|
|
$
|
11,457
|
|
|
|
|
$
|
6,500
|
|
|
|
|
Net interest
income
|
|
$
|
189
|
|
|
|
|
$
|
180
|
|
|
|
|
$
|
152
|
|
|
|
Interest rate spread
(2)
|
|
|
2.44%
|
|
|
|
2.44%
|
|
|
|
2.39%
|
|
Net interest margin
(3)
|
|
|
2.78%
|
|
|
|
2.78%
|
|
|
|
2.91%
|
|
Ratio of average
interest-earning assets to interest-bearing
liabilities
|
|
|
196.6
|
%
|
|
|
|
180.2
|
%
|
|
|
|
145.8
|
%
|
|
Total average
deposits
|
$
|
21,068
|
|
|
|
|
$
|
19,561
|
|
|
|
|
$
|
15,904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Approximately 80
percent of custodial deposits from loans subserviced which pay
interest is recognized as an offset in net loan administration
income.
|
|
(2)
|
Interest rate spread
is the difference between rate of interest earned on
interest-earning assets and rate of interest paid on
interest-bearing liabilities.
|
|
(3)
|
Net interest margin
is net interest income divided by average interest-earning
assets.
|
|
Average Balances,
Yields and Rates
(Dollars in millions)
(Unaudited)
|
|
|
Twelve Months
Ended,
|
|
December 31,
2020
|
|
December 31,
2019
|
|
Average
Balance
|
Interest
|
Annualized
Yield/Rate
|
|
Average
Balance
|
Interest
|
Annualized
Yield/Rate
|
|
Interest-Earning
Assets
|
|
|
Loans
held-for-sale
|
$
|
5,542
|
|
$
|
184
|
|
3.33
|
%
|
|
$
|
3,952
|
|
$
|
170
|
|
4.30
|
%
|
|
Loans
held-for-investment
|
|
|
|
|
|
|
|
|
Residential first
mortgage
|
2,704
|
|
92
|
|
3.36
|
%
|
|
3,173
|
|
115
|
|
3.61
|
%
|
|
Home equity
|
965
|
|
39
|
|
4.01
|
%
|
|
871
|
|
46
|
|
5.31
|
%
|
|
Other
|
912
|
|
49
|
|
5.38
|
%
|
|
566
|
|
36
|
|
6.33
|
%
|
|
Total consumer
loans
|
4,581
|
|
180
|
|
3.90
|
%
|
|
4,610
|
|
197
|
|
4.26
|
%
|
|
Commercial real
estate
|
3,030
|
|
116
|
|
3.77
|
%
|
|
2,502
|
|
136
|
|
5.38
|
%
|
|
Commercial and
industrial
|
1,692
|
|
63
|
|
3.65
|
%
|
|
1,708
|
|
88
|
|
5.10
|
%
|
|
Warehouse
lending
|
4,694
|
|
190
|
|
3.98
|
%
|
|
2,112
|
|
107
|
|
4.99
|
%
|
|
Total commercial
loans
|
9,416
|
|
369
|
|
3.86
|
%
|
|
6,322
|
|
331
|
|
5.17
|
%
|
|
Total loans
held-for-investment
|
13,997
|
|
549
|
|
3.87
|
%
|
|
10,932
|
|
528
|
|
4.79
|
%
|
|
Loans with government
guarantees
|
1,571
|
|
15
|
|
1.04
|
%
|
|
553
|
|
15
|
|
2.66
|
%
|
|
Investment
securities
|
2,943
|
|
70
|
|
2.37
|
%
|
|
2,845
|
|
77
|
|
2.71
|
%
|
|
Interest-earning
deposits
|
378
|
|
1
|
|
0.33
|
%
|
|
171
|
|
4
|
|
2.35
|
%
|
|
Total interest-earning
assets
|
$
|
24,431
|
|
$
|
819
|
|
3.33
|
%
|
|
$
|
18,453
|
|
$
|
794
|
|
4.28
|
%
|
|
Other
assets
|
2,477
|
|
|
|
|
2,221
|
|
|
|
|
Total
assets
|
$
|
26,908
|
|
|
|
|
$
|
20,674
|
|
|
|
|
Interest-Bearing
Liabilities
|
|
|
|
|
|
|
|
|
Retail
deposits
|
|
|
|
|
|
|
|
|
Demand
deposits
|
$
|
1,763
|
|
$
|
6
|
|
0.27
|
%
|
|
$
|
1,345
|
|
$
|
11
|
|
0.77
|
%
|
|
Savings
deposits
|
3,597
|
|
19
|
|
0.52
|
%
|
|
3,220
|
|
36
|
|
1.13
|
%
|
|
Money market
deposits
|
707
|
|
1
|
|
0.15
|
%
|
|
736
|
|
2
|
|
0.32
|
%
|
|
Certificates of
deposit
|
1,831
|
|
32
|
|
1.83
|
%
|
|
2,536
|
|
59
|
|
2.31
|
%
|
|
Total retail
deposits
|
7,898
|
|
58
|
|
0.73
|
%
|
|
7,837
|
|
108
|
|
1.37
|
%
|
|
Government
deposits
|
1,301
|
|
7
|
|
0.56
|
%
|
|
1,186
|
|
17
|
|
1.46
|
%
|
|
Wholesale deposits and
other
|
821
|
|
16
|
|
1.94
|
%
|
|
554
|
|
13
|
|
2.36
|
%
|
|
Total interest-bearing
deposits
|
10,020
|
|
81
|
|
0.81
|
%
|
|
9,577
|
|
138
|
|
1.44
|
%
|
|
Short-term FHLB
advances and other
|
2,807
|
|
16
|
|
0.58
|
%
|
|
2,633
|
|
59
|
|
2.23
|
%
|
|
Long-term FHLB
advances
|
1,066
|
|
12
|
|
1.10
|
%
|
|
425
|
|
7
|
|
1.59
|
%
|
|
Other long-term
debt
|
520
|
|
25
|
|
4.80
|
%
|
|
495
|
|
28
|
|
5.65
|
%
|
|
Total interest-bearing
liabilities
|
14,413
|
|
134
|
|
0.93
|
%
|
|
13,130
|
|
232
|
|
1.76
|
%
|
|
Noninterest-bearing
deposits
|
|
|
|
|
|
|
|
|
Retail deposits and
other
|
1,799
|
|
|
|
|
1,291
|
|
|
|
|
Custodial deposits
(1)
|
6,725
|
|
|
|
|
3,839
|
|
|
|
|
Total
noninterest-bearing deposits
|
8,524
|
|
|
|
|
5,130
|
|
|
|
|
Other
liabilities
|
1,919
|
|
|
|
|
719
|
|
|
|
|
Stockholders'
equity
|
2,052
|
|
|
|
|
1,695
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
26,908
|
|
|
|
|
$
|
20,674
|
|
|
|
|
Net interest-earning
assets
|
$
|
10,018
|
|
|
|
|
$
|
5,323
|
|
|
|
|
Net interest
income
|
|
$
|
685
|
|
|
|
|
$
|
562
|
|
|
|
Interest rate spread
(2)
|
|
|
2.40
|
%
|
|
|
|
2.52
|
%
|
|
Net interest margin
(3)
|
|
|
2.80
|
%
|
|
|
|
3.05
|
%
|
|
Ratio of average
interest-earning assets to interest-bearing
liabilities
|
|
|
169.5
|
%
|
|
|
|
140.5
|
%
|
|
Total average
deposits
|
18,544
|
|
|
|
|
14,708
|
|
|
|
|
|
|
(1)
|
Approximately 80
percent of custodial deposits from loans subserviced which pay
interest is recognized as an offset in net loan administration
income.
|
|
(2)
|
Interest rate spread
is the difference between rate of interest earned on
interest-earning assets and rate of interest paid on
interest-bearing liabilities.
|
|
(3)
|
Net interest margin
is net interest income divided by average interest-earning
assets.
|
|
Earnings Per
Share
(Dollars in millions, except share data)
(Unaudited)
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
2020
|
|
September
30
2020
|
|
December 31,
2019
|
|
December
31,
2020
|
|
December 31,
2019
|
|
Net Income
|
$
|
154
|
|
|
$
|
222
|
|
|
$
|
58
|
|
|
$
|
538
|
|
|
$
|
218
|
|
|
Weighted average
common shares outstanding
|
53,912,584
|
|
|
57,032,746
|
|
|
56,513,890
|
|
|
56,094,542
|
|
|
56,584,238
|
|
|
Stock-based
awards
|
431,382
|
|
347,063
|
|
684,844
|
|
|
411,271
|
|
654,740
|
|
|
Weighted average
diluted common shares
|
54,343,966
|
|
|
57,379,809
|
|
|
57,198,734
|
|
|
56,505,813
|
|
|
57,238,978
|
|
|
Basic earnings per
common share
|
$
|
2.86
|
|
|
$
|
3.90
|
|
|
$
|
1.01
|
|
|
$
|
9.59
|
|
|
$
|
3.85
|
|
|
Stock-based
awards
|
(0.03)
|
|
|
(0.02)
|
|
|
(0.01)
|
|
|
(0.07)
|
|
|
(0.05)
|
|
|
Diluted earnings per
common share
|
$
|
2.83
|
|
|
$
|
3.88
|
|
|
$
|
1.00
|
|
|
$
|
9.52
|
|
|
$
|
3.80
|
|
|
Regulatory Capital
- Bancorp
(Dollars in millions)
(Unaudited)
|
|
|
December 31,
2020
|
|
September 30,
2020
|
|
December 31,
2019
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Tier 1 leverage (to
adjusted avg. total assets)
|
$
|
2,270
|
|
7.71
|
%
|
|
$
|
2,256
|
|
8.04
|
%
|
|
$
|
1,826
|
|
8.00
|
%
|
|
Total adjusted avg.
total asset base
|
$
|
29,444
|
|
|
|
$
|
28,069
|
|
|
|
$
|
22,830
|
|
|
|
Tier 1 common equity
(to risk weighted assets)
|
$
|
2,030
|
|
9.15
|
%
|
|
$
|
2,016
|
|
9.21
|
%
|
|
$
|
1,586
|
|
9.62
|
%
|
|
Tier 1 capital
(to risk weighted assets)
|
$
|
2,270
|
|
10.23
|
%
|
|
$
|
2,256
|
|
10.31
|
%
|
|
$
|
1,826
|
|
11.07
|
%
|
|
Total capital (to
risk weighted assets)
|
$
|
2,638
|
|
11.89
|
%
|
|
$
|
2,471
|
|
11.29
|
%
|
|
$
|
1,936
|
|
11.74
|
%
|
|
Risk-weighted asset
base
|
$
|
22,190
|
|
|
|
$
|
21,882
|
|
|
|
$
|
16,493
|
|
|
|
Regulatory Capital
- Bank
(Dollars in millions)
(Unaudited)
|
|
|
December 31,
2020
|
|
September 30,
2020
|
|
December 31,
2019
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Tier 1 leverage (to
adjusted avg. total assets)
|
$
|
2,390
|
|
8.12
|
%
|
|
$
|
2,212
|
|
7.89
|
%
|
|
$
|
1,752
|
|
7.71
|
%
|
|
Total adjusted avg.
total asset base
|
29,437
|
|
|
|
$
|
28,051
|
|
|
|
22,727
|
|
|
|
Tier 1 common equity
(to risk weighted assets)
|
$
|
2,390
|
|
10.77
|
%
|
|
$
|
2,212
|
|
10.11
|
%
|
|
$
|
1,752
|
|
11.04
|
%
|
|
Tier 1 capital
(to risk weighted assets)
|
$
|
2,390
|
|
10.77
|
%
|
|
$
|
2,212
|
|
10.11
|
%
|
|
$
|
1,752
|
|
11.04
|
%
|
|
Total capital (to
risk weighted assets)
|
$
|
2,608
|
|
11.75
|
%
|
|
$
|
2,427
|
|
11.09
|
%
|
|
$
|
1,862
|
|
11.73
|
%
|
|
Risk-weighted asset
base
|
22,194
|
|
|
|
$
|
21,882
|
|
|
|
$
|
15,873
|
|
|
|
Loans
Serviced
(Dollars in millions)
(Unaudited)
|
|
|
December 31,
2020
|
|
September 30,
2020
|
|
December 31,
2019
|
|
Unpaid Principal
Balance (1)
|
Number of
accounts
|
|
Unpaid Principal
Balance (1)
|
Number of
accounts
|
|
Unpaid Principal
Balance (1)
|
Number of
accounts
|
|
Subserviced for
others (2)
|
$
|
178,606
|
|
867,799
|
|
|
$
|
180,981
|
|
893,559
|
|
|
$
|
194,638
|
|
918,662
|
|
|
Serviced for others
(3)
|
38,026
|
|
151,081
|
|
|
37,908
|
|
148,868
|
|
|
24,003
|
|
105,469
|
|
|
Serviced for own loan
portfolio (4)
|
10,079
|
|
66,519
|
|
|
8,469
|
|
62,486
|
|
|
9,536
|
|
66,526
|
|
|
Total loans
serviced
|
$
|
226,711
|
|
1,085,399
|
|
|
$
|
227,358
|
|
1,104,913
|
|
|
$
|
228,177
|
|
1,090,657
|
|
|
|
|
(1)
|
UPB, net of write
downs, does not include premiums or discounts.
|
|
(2)
|
Loans subserviced for
a fee for non-Flagstar owned loans or MSRs. Includes temporary
short-term subservicing performed as a result of sales of
servicing-released MSRs.
|
|
(3)
|
Loans for which
Flagstar owns the MSR.
|
|
(4)
|
Includes LHFI
(residential first mortgage, home equity and other consumer), LHFS
(residential first mortgage), loans with government guarantees
(residential first mortgage), and repossessed assets.
|
|
Loans
Held-for-Investment
(Dollars in millions)
(Unaudited)
|
|
|
December 31,
2020
|
|
September 30,
2020
|
|
December 31,
2019
|
|
Consumer
loans
|
|
|
|
|
|
|
|
|
|
Residential first
mortgage
|
$
|
2,266
|
|
14.0
|
%
|
|
$
|
2,472
|
|
15.0
|
%
|
|
$
|
3,154
|
|
26.0
|
%
|
|
Home equity
|
856
|
|
5.3
|
%
|
|
924
|
|
5.6
|
%
|
|
1,024
|
|
8.4
|
%
|
|
Other
|
1,004
|
|
6.1
|
%
|
|
973
|
|
5.9
|
%
|
|
729
|
|
6.0
|
%
|
|
Total consumer
loans
|
4,126
|
|
25.4
|
%
|
|
4,369
|
|
26.5
|
%
|
|
4,907
|
|
40.4
|
%
|
|
Commercial
loans
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
3,061
|
|
18.9
|
%
|
|
2,996
|
|
18.2
|
%
|
|
2,828
|
|
23.3
|
%
|
|
Commercial and
industrial
|
1,382
|
|
8.5
|
%
|
|
1,520
|
|
9.2
|
%
|
|
1,634
|
|
13.5
|
%
|
|
Warehouse
lending
|
7,658
|
|
47.2
|
%
|
|
7,591
|
|
46.1
|
%
|
|
2,760
|
|
22.8
|
%
|
|
Total commercial
loans
|
12,101
|
|
74.6
|
%
|
|
12,107
|
|
73.5
|
%
|
|
7,222
|
|
59.6
|
%
|
|
Total loans
held-for-investment
|
$
|
16,227
|
|
100.0
|
%
|
|
$
|
16,476
|
|
100.0
|
%
|
|
$
|
12,129
|
|
100.0
|
%
|
|
Other Consumer
Loans Held-for-Investment
(Dollars in millions)
(Unaudited)
|
|
|
December 31,
2020
|
|
September 30,
2020
|
|
December 31,
2019
|
|
Indirect
Lending
|
$
|
713
|
|
71.0
|
%
|
|
$
|
710
|
|
73.0
|
%
|
|
$
|
578
|
|
79.3
|
%
|
|
Point of
Sale
|
211
|
|
21.0
|
%
|
|
202
|
20.8
|
%
|
|
63
|
|
8.6
|
%
|
|
Other
|
80
|
|
8.0
|
%
|
|
61
|
6.3
|
%
|
|
88
|
|
12.1
|
%
|
|
Total other consumer
loans
|
$
|
1,004
|
|
100.0
|
%
|
|
$
|
973
|
|
100.0
|
%
|
|
$
|
729
|
|
100.0
|
%
|
|
Allowance for
Credit Losses
(Dollars in millions)
(Unaudited)
|
|
|
December 31,
2020
|
|
September 30,
2020
|
|
December 31,
2019
|
|
Residential first
mortgage
|
$
|
49
|
|
|
$
|
52
|
|
|
$
|
22
|
|
|
Home
equity
|
25
|
|
|
29
|
|
|
14
|
|
|
Other
|
39
|
|
|
38
|
|
|
6
|
|
|
Total consumer
loans
|
113
|
|
|
119
|
|
|
42
|
|
|
Commercial real
estate
|
84
|
|
|
89
|
|
|
38
|
|
|
Commercial and
industrial
|
51
|
|
|
42
|
|
|
22
|
|
|
Warehouse
lending
|
4
|
|
|
5
|
|
|
5
|
|
|
Total commercial
loans
|
139
|
|
|
136
|
|
|
65
|
|
|
Allowance for loan
losses
|
252
|
|
|
255
|
|
|
107
|
|
|
Reserve for unfunded
commitments
|
28
|
|
|
25
|
|
|
3
|
|
|
Allowance for credit
losses
|
$
|
280
|
|
|
$
|
280
|
|
|
$
|
110
|
|
|
Allowance for
Credit Losses
(Dollars in millions)
(Unaudited)
|
|
|
Three Months Ended
December 31, 2020
|
|
Residential First
Mortgage
|
Home
Equity
|
Other
Consumer
|
Commercial Real
Estate
|
Commercial and
Industrial
|
Warehouse
Lending
|
Total LHFI
Portfolio (1)
|
Unfunded
Commitments
|
|
Beginning
balance
|
$
|
52
|
|
$
|
29
|
|
$
|
38
|
|
$
|
89
|
|
$
|
42
|
|
$
|
5
|
|
$
|
255
|
|
$
|
25
|
|
|
Provision (benefit)
for credit losses:
|
|
|
|
|
|
|
|
|
|
Loan volume
|
(2)
|
|
(2)
|
|
1
|
|
1
|
|
(2)
|
|
—
|
|
(4)
|
|
3
|
|
|
Economic forecast
(2)
|
(6)
|
|
(6)
|
|
(2)
|
|
—
|
|
—
|
|
(1)
|
|
(15)
|
|
—
|
|
|
Credit (3)
|
(1)
|
|
(2)
|
|
(4)
|
|
—
|
|
8
|
|
—
|
|
1
|
|
—
|
|
|
Qualitative factor
adjustments (4)
|
6
|
|
5
|
|
6
|
|
(6)
|
|
3
|
|
—
|
|
14
|
|
—
|
|
|
Charge-offs
|
(1)
|
|
—
|
|
(1)
|
|
—
|
|
(1)
|
|
—
|
|
(3)
|
|
—
|
|
|
Provision for
charge-offs
|
1
|
|
—
|
|
1
|
|
—
|
|
1
|
|
—
|
|
3
|
|
—
|
|
|
Recoveries
|
—
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
—
|
|
|
Ending allowance
balance
|
$
|
49
|
|
$
|
25
|
|
$
|
39
|
|
$
|
84
|
|
$
|
51
|
|
$
|
4
|
|
$
|
252
|
|
$
|
28
|
|
|
|
|
(1)
|
Excludes loans
carried under the fair value option.
|
|
(2)
|
Includes changes in
the lifetime loss rate based on current economic forecasts as
compared to forecasts used in the prior quarter.
|
|
(3)
|
Includes changes in
the probability of default and severity of default based on current
borrower and guarantor characteristics, as well as individually
evaluated reserves.
|
|
(4)
|
Includes $7 million
of unallocated reserves attributed to various portfolios for
presentation purposes.
|
|
Twelve Months
Ended December 31, 2020
|
|
Residential First
Mortgage
|
Home
Equity
|
Other
Consumer
|
Commercial Real
Estate
|
Commercial and
Industrial
|
Warehouse
Lending
|
Total LHFI
Portfolio (1)
|
Unfunded
Commitments
|
|
(Dollars in
millions)
|
|
Beginning balance
ALLL
|
$
|
22
|
|
$
|
14
|
|
$
|
6
|
|
$
|
38
|
|
$
|
22
|
|
$
|
5
|
|
$
|
107
|
|
$
|
3
|
|
|
Impact of adopting ASC
326
|
25
|
|
12
|
|
10
|
|
(14)
|
|
(6)
|
|
(4)
|
|
23
|
|
7
|
|
|
Beginning allowance
balance
|
47
|
|
26
|
|
16
|
|
24
|
|
16
|
|
1
|
|
130
|
|
10
|
|
|
Provision (benefit)
for credit losses:
|
|
|
|
|
|
|
|
|
|
Loan volume
|
(10)
|
|
(4)
|
|
9
|
|
3
|
|
(3)
|
|
1
|
|
(4)
|
|
7
|
|
|
Economic forecast
(2)
|
5
|
|
(6)
|
|
3
|
|
15
|
|
(3)
|
|
(1)
|
|
13
|
|
11
|
|
|
Credit (3)
|
(5)
|
|
(3)
|
|
(2)
|
|
23
|
|
20
|
|
—
|
|
33
|
|
—
|
|
|
Qualitative factor
adjustments (4)
|
12
|
|
8
|
|
11
|
|
19
|
|
21
|
|
3
|
|
74
|
|
—
|
|
|
Charge-offs
|
(6)
|
|
(3)
|
|
(5)
|
|
—
|
|
(1)
|
|
—
|
|
(15)
|
|
—
|
|
|
Provision for
charge-offs
|
6
|
|
3
|
|
5
|
|
—
|
|
1
|
|
—
|
|
15
|
|
—
|
|
|
Recoveries
|
—
|
|
4
|
|
2
|
|
—
|
|
—
|
|
—
|
|
6
|
|
—
|
|
|
Ending allowance
balance
|
$
|
49
|
|
$
|
25
|
|
$
|
39
|
|
$
|
84
|
|
$
|
51
|
|
$
|
4
|
|
$
|
252
|
|
$
|
28
|
|
|
|
|
(1)
|
Excludes loans
carried under the fair value option.
|
|
(2)
|
Includes changes in
the lifetime loss rate based on current economic forecasts as
compared to forecasts used in the prior quarter.
|
|
(3)
|
Includes changes in
the probability of default and severity of default based on current
borrower and guarantor characteristics, as well as individually
evaluated reserves.
|
|
(4)
|
Includes $7 million
of unallocated reserves attributed to various portfolios for
presentation purposes.
|
|
Nonperforming
Loans and Assets
(Dollars in millions)
(Unaudited)
|
|
|
December
31,
2020
|
|
September
30,
2020
|
|
December
31,
2019
|
|
Nonperforming
LHFI
|
$
|
46
|
|
|
$
|
36
|
|
|
$
|
16
|
|
|
Nonperforming
TDRs
|
5
|
|
|
4
|
|
|
3
|
|
|
Nonperforming TDRs at
inception but performing for less than six months
|
6
|
|
|
5
|
|
|
7
|
|
|
Total nonperforming
LHFI and TDRs (1)
|
57
|
|
|
45
|
|
|
26
|
|
|
Other nonperforming
assets, net
|
8
|
|
|
6
|
|
|
10
|
|
|
LHFS
|
9
|
|
|
6
|
|
|
5
|
|
|
Total nonperforming
assets
|
$
|
74
|
|
|
$
|
57
|
|
|
$
|
41
|
|
|
|
|
|
|
|
|
Ratio of
nonperforming assets to total assets (2)
|
0.21
|
%
|
|
0.17
|
%
|
|
0.15
|
%
|
|
Ratio of
nonperforming LHFI and TDRs to LHFI
|
0.34
|
%
|
|
0.28
|
%
|
|
0.21
|
%
|
|
Ratio of
nonperforming assets to LHFI and repossessed assets (2)
|
0.40
|
%
|
|
0.31
|
%
|
|
0.30
|
%
|
|
|
|
(1)
|
Includes less than 90
day past due performing loans placed on nonaccrual. Interest is not
being accrued on these loans.
|
|
(2)
|
Ratio excludes
LHFS.
|
|
Asset Quality -
Loans Held-for-Investment
(Dollars in millions)
(Unaudited)
|
|
|
30-59 Days Past
Due
|
|
60-89 Days Past
Due
|
|
Greater than 90
days (1)
|
|
Total Past
Due
|
|
Total
LHFI
|
|
December 31,
2020
|
|
|
|
|
|
|
|
|
|
|
Consumer
loans
|
$
|
9
|
|
|
$
|
6
|
|
|
$
|
38
|
|
|
$
|
53
|
|
|
$
|
4,126
|
|
|
Commercial
loans
|
21
|
|
|
—
|
|
|
17
|
|
|
38
|
|
|
12,101
|
|
|
Total loans
|
$
|
30
|
|
|
$
|
6
|
|
|
$
|
55
|
|
|
$
|
91
|
|
|
$
|
16,227
|
|
|
September 30,
2020
|
|
|
|
|
|
|
|
|
|
|
Consumer
loans
|
$
|
9
|
|
|
$
|
4
|
|
|
$
|
36
|
|
|
$
|
49
|
|
|
$
|
4,369
|
|
|
Commercial
loans
|
—
|
|
|
—
|
|
|
10
|
|
|
10
|
|
|
12,107
|
|
|
Total loans
|
$
|
9
|
|
|
$
|
4
|
|
|
$
|
46
|
|
|
$
|
59
|
|
|
$
|
16,476
|
|
|
December 31,
2019
|
|
|
|
|
|
|
|
|
|
|
Consumer
loans
|
$
|
9
|
|
|
$
|
5
|
|
|
$
|
26
|
|
|
$
|
40
|
|
|
$
|
4,907
|
|
|
Commercial
loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,222
|
|
|
Total loans
|
$
|
9
|
|
|
$
|
5
|
|
|
$
|
26
|
|
|
$
|
40
|
|
|
$
|
12,129
|
|
|
|
|
(1)
|
Includes performing
nonaccrual loans that are less than 90 days delinquent and for
which interest cannot be accrued.
|
|
Troubled Debt
Restructurings
(Dollars in millions)
(Unaudited)
|
|
|
TDRs
|
|
Performing
|
|
Nonperforming
|
|
Total
|
|
December 31,
2020
|
|
|
Consumer
loans
|
$
|
31
|
|
|
$
|
10
|
|
|
$
|
41
|
|
|
Commercial
loans
|
5
|
|
|
—
|
|
|
5
|
|
|
Total TDR
loans
|
$
|
36
|
|
|
$
|
10
|
|
|
$
|
46
|
|
|
September 30,
2020
|
|
|
|
|
|
|
Consumer
loans
|
$
|
34
|
|
|
$
|
9
|
|
|
$
|
43
|
|
|
Commercial
loans
|
5
|
|
|
—
|
|
|
5
|
|
|
Total TDR
loans
|
$
|
39
|
|
|
$
|
9
|
|
|
$
|
48
|
|
|
December 31,
2019
|
|
|
|
|
|
|
Consumer
loans
|
$
|
38
|
|
|
$
|
10
|
|
|
$
|
48
|
|
|
Total TDR
loans
|
$
|
38
|
|
|
$
|
10
|
|
|
$
|
48
|
|
|
Non-GAAP
Reconciliation
|
|
(Unaudited)
|
|
|
In addition to
analyzing the Company's results on a reported basis, management
reviews the Company's results and the results on an adjusted basis.
The non-GAAP measures presented in the tables below reflect the
adjustments of the reported U.S.GAAP results for significant items
that management does not believe are reflective of the Company's
current and ongoing operations. The DOJ benefit and loans with
government guarantees that have not been repurchased and don't
accrue interest are not reflective of our ongoing operations and,
therefore, have been excluded from our U.S. GAAP results. The
Company believes that tangible book value per share, tangible
common equity to assets ratio, return on average tangible common
equity, adjusted return on average tangible common equity, adjusted
return on average assets, adjusted HFI loan-to-deposit ratio and
adjusted net interest margin provide a meaningful representation of
its operating performance on an ongoing basis.
|
|
|
The following tables
provide a reconciliation of non-GAAP financial measures.
|
|
Tangible book
value per share and tangible common equity to assets
ratio.
|
|
|
December
31,
2020
|
|
September
30,
2020
|
|
June 30,
2020
|
|
March 31,
2020
|
|
December
31,
2019
|
|
(Dollars in millions,
except share data)
|
|
Total stockholders'
equity
|
$
|
2,201
|
|
|
$
|
2,195
|
|
|
$
|
1,971
|
|
|
$
|
1,842
|
|
|
$
|
1,788
|
|
|
Less: Goodwill and
intangible assets
|
157
|
|
|
160
|
|
|
164
|
|
|
167
|
|
|
170
|
|
|
Tangible book
value
|
$
|
2,044
|
|
|
$
|
2,035
|
|
|
$
|
1,807
|
|
|
$
|
1,675
|
|
|
$
|
1,618
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of common
shares outstanding
|
52,656,067
|
|
|
57,150,470
|
|
|
56,943,979
|
|
|
56,729,789
|
|
|
56,631,236
|
|
|
Tangible book
value per share
|
$
|
38.80
|
|
|
$
|
35.60
|
|
|
$
|
31.74
|
|
|
$
|
29.52
|
|
|
$
|
28.57
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
31,038
|
|
|
$
|
29,476
|
|
|
$
|
27,468
|
|
|
$
|
26,805
|
|
|
$
|
23,266
|
|
|
Tangible common
equity to assets ratio
|
6.58
|
%
|
|
6.90
|
%
|
|
6.58
|
%
|
|
6.25
|
%
|
|
6.95
|
%
|
|
Adjusted return on
average common equity, adjusted return on average tangible common
equity and adjusted return on average assets.
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2020
|
|
September 30,
2020
|
|
December 31,
2019
|
|
December 31,
2020
|
|
December 31,
2019
|
|
(Dollars in
millions)
|
|
Net income
|
$
|
154
|
|
|
$
|
116
|
|
|
$
|
58
|
|
|
$
|
538
|
|
|
$
|
218
|
|
|
Add: Intangible asset
amortization, net of tax
|
2
|
|
|
3
|
|
|
3
|
|
|
10
|
|
|
12
|
|
|
Tangible net
income
|
$
|
156
|
|
|
$
|
119
|
|
|
$
|
61
|
|
|
$
|
548
|
|
|
$
|
230
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average
equity
|
$
|
2,235
|
|
|
$
|
1,977
|
|
|
$
|
1,803
|
|
|
$
|
2,052
|
|
|
$
|
1,695
|
|
|
Less: Average
goodwill and intangible assets
|
159
|
|
|
165
|
|
|
172
|
|
|
164
|
|
|
179
|
|
|
Total tangible average
equity
|
$
|
2,076
|
|
|
$
|
1,812
|
|
|
$
|
1,631
|
|
|
$
|
1,888
|
|
|
$
|
1,516
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity
|
30.13
|
%
|
|
26.16
|
%
|
|
14.76
|
%
|
|
29.00
|
%
|
|
15.15
|
%
|
|
Adjustment to remove
DOJ adjustment
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
(1.28)
|
%
|
|
Adjusted return on
average tangible common equity
|
30.13
|
%
|
|
26.16
|
%
|
|
14.76
|
%
|
|
29.00
|
%
|
|
13.87
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
2.08
|
%
|
|
1.77
|
%
|
|
0.99
|
%
|
|
2.00
|
%
|
|
1.05
|
%
|
|
Adjustment to remove
DOJ adjustment
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
(0.09)
|
%
|
|
Adjusted return on
average assets
|
2.08
|
%
|
|
1.77
|
%
|
|
0.99
|
%
|
|
2.00
|
%
|
|
0.96
|
%
|
|
Adjusted HFI
loan-to-deposit ratio.
|
|
|
December
31,
2020
|
|
September
30,
2020
|
|
June 30,
2020
|
|
March 31,
2020
|
|
December
31,
2019
|
|
(Dollars in
millions)
|
|
Average
LHFI
|
$
|
15,703
|
|
|
$
|
14,839
|
|
|
$
|
13,596
|
|
|
$
|
11,823
|
|
|
$
|
12,168
|
|
|
Less: Average
warehouse loans
|
6,948
|
|
|
5,697
|
|
|
3,785
|
|
|
2,310
|
|
|
2,747
|
|
|
Adjusted average
LHFI
|
$
|
8,755
|
|
|
$
|
9,142
|
|
|
$
|
9,811
|
|
|
$
|
9,513
|
|
|
$
|
9,421
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
deposits
|
$
|
21,068
|
|
|
$
|
19,561
|
|
|
$
|
17,715
|
|
|
$
|
15,795
|
|
|
$
|
15,904
|
|
|
Less: Average
custodial deposits
|
8,527
|
|
|
7,347
|
|
|
6,223
|
|
|
4,776
|
|
|
4,772
|
|
|
Adjusted average
deposits
|
$
|
12,541
|
|
|
$
|
12,214
|
|
|
$
|
11,492
|
|
|
$
|
11,019
|
|
|
$
|
11,132
|
|
|
|
|
|
|
|
|
|
|
|
|
HFI loan-to-deposit
ratio
|
74.5
|
%
|
|
75.9
|
%
|
|
76.7
|
%
|
|
74.9
|
%
|
|
76.5
|
%
|
|
Adjusted HFI
loan-to-deposit ratio
|
69.8
|
%
|
|
74.8
|
%
|
|
85.4
|
%
|
|
86.3
|
%
|
|
84.6
|
%
|
|
Adjusted net
interest margin.
|
|
|
Three Months
Ended
|
|
December 31,
2020
|
|
September
30,
2020
|
|
June 30,
2020
|
|
March 31,
2020
|
|
December 31,
2019
|
|
Net interest
margin
|
2.78
|
%
|
|
2.78
|
%
|
|
2.86
|
%
|
|
2.81
|
%
|
|
2.91
|
%
|
|
Adjustment to LGG
loans available for repurchase
|
0.20
|
%
|
|
0.16
|
%
|
|
0.02
|
%
|
|
—
|
%
|
|
—
|
%
|
|
Adjusted net
interest margin
|
2.98
|
%
|
|
2.94
|
%
|
|
2.88
|
%
|
|
2.81
|
%
|
|
2.91
|
%
|
For more information, contact:
Kenneth Schellenberg
FBCInvestorRelations@flagstar.com
(248) 312-5741
View original
content:http://www.prnewswire.com/news-releases/flagstar-bancorp-reports-fourth-quarter-2020-net-income-of-154-million-or-2-83-per-diluted-share-301212111.html
SOURCE Flagstar Bancorp, Inc.