Key Highlights - Third Quarter 2022
- Generated adjusted net income of $75
million, or $1.41 per diluted
share, excluding merger-related costs.
- Expanded net interest margin by 29 basis points to 3.98 percent
for the quarter and 4.07 percent for September.
- Grew average commercial loans, excluding warehouse loans, by 15
percent compared to the second quarter.
- Yielded an annualized 12 percent return on our mortgage
servicing rights asset.
- Produced a 1.2 percent return on assets.
- Reduced noninterest expense by $20
million and improved the efficiency ratio by 8 percent.
- Maintained strong asset quality with no nonperforming
commercial loans.
TROY,
Mich., Oct. 26, 2022 /PRNewswire/ -- Flagstar
Bancorp, Inc. (NYSE: FBC) today reported third quarter 2022
adjusted net income of $75 million,
or $1.41 per diluted share, compared
to second quarter 2022 adjusted net income of $63 million, or $1.17 per diluted share.
"Once again, our results for the quarter demonstrate the
business model we built is working just as it was designed to
work," said Alessandro DiNello,
president and chief executive officer of Flagstar Bancorp.
"Overall, all lines of business contributed to earnings growth
of 22 percent compared to the second quarter, leading to a strong
1.2 percent return on assets. Our Community bank grew non-warehouse
commercial loans by 15 percent and drove new all-time highs for net
interest income and net interest margin. Servicing exceeded 1.4
million in serviced and subserviced accounts. Mortgage remained
profitable despite unrelenting challenges as our team responded
well by managing costs.
"Most noteworthy—and where we continued to shine—is the growth
in our net interest margin, which increased 29 basis points for the
third quarter to 3.98 percent — a new record for our highest
core net interest margin ever, and to 4.07 percent for September –
another record. As a result, net interest income grew $26 million, or 13 percent.
"Credit quality continues to hold up well with no nonperforming
commercial loans and low levels of delinquency. We also continued
to see improvements in forbearance-related delinquencies.
"I couldn't be prouder of how our team has performed. Our
results this quarter again showed our ability to find ways to
deliver profitability in any economic environment, as all elements
of our team came together to deliver their very best."
|
Income Statement
Highlights
|
|
|
|
|
|
Three Months
Ended
|
|
September
30,
2022
|
June 30,
2022
|
March 31,
2022
|
December 31,
2021
|
September
30,
2021
|
|
(Dollars in millions,
except per share data)
|
|
Net interest
income
|
$
219
|
$
193
|
$
165
|
$
181
|
$
195
|
|
Provision (benefit) for
credit losses
|
5
|
(9)
|
(4)
|
(17)
|
(23)
|
|
Noninterest
income
|
114
|
131
|
160
|
202
|
266
|
|
Noninterest
expense
|
236
|
256
|
261
|
291
|
286
|
|
Income before income
taxes
|
92
|
77
|
68
|
109
|
198
|
|
Provision for income
taxes
|
19
|
17
|
15
|
24
|
46
|
|
Net income
|
$
73
|
$
60
|
$
53
|
$
85
|
$
152
|
|
|
|
|
|
|
|
Income per
share:
|
|
|
|
|
|
|
Basic
|
$
1.36
|
$
1.13
|
$
0.99
|
$
1.62
|
$
2.87
|
|
Diluted
|
$
1.35
|
$
1.12
|
$
0.99
|
$
1.60
|
$
2.83
|
|
Adjusted Income
Statement Highlights (Non-GAAP)(1)
|
|
|
|
|
|
Three Months
Ended
|
|
September
30,
2022
|
June 30,
2022
|
March 31,
2022
|
December 31,
2021
|
September
30,
2021
|
|
(Dollars in millions,
except per share data)
|
|
Net interest
income
|
$
219
|
$
193
|
$
165
|
$
181
|
$
195
|
|
Provision (benefit) for
credit losses
|
5
|
(9)
|
(4)
|
(17)
|
(23)
|
|
Noninterest
income
|
114
|
131
|
160
|
202
|
266
|
|
Noninterest
expense
|
233
|
253
|
258
|
285
|
281
|
|
Income before income
taxes
|
95
|
80
|
71
|
115
|
203
|
|
Provision for income
taxes
|
20
|
17
|
16
|
25
|
47
|
|
Net income
|
$
75
|
$
63
|
$
55
|
$
90
|
$
156
|
|
|
|
|
|
|
|
Income per
share:
|
|
|
|
|
|
|
Basic
|
$
1.42
|
$
1.18
|
$
1.03
|
$
1.71
|
$
2.94
|
|
Diluted
|
$
1.41
|
$
1.17
|
$
1.02
|
$
1.69
|
$
2.90
|
|
(1) See Non-GAAP
Reconciliation for further information.
|
|
Key
Ratios
|
|
|
|
|
|
Three Months
Ended
|
|
September
30,
2022
|
June 30,
2022
|
March 31,
2022
|
December 31,
2021
|
September
30,
2021
|
|
Net interest
margin
|
3.98 %
|
3.69 %
|
3.11 %
|
2.96 %
|
3.00 %
|
|
Return on average
assets
|
1.2 %
|
1.0 %
|
0.9 %
|
1.3 %
|
2.2 %
|
|
Return on average
common equity
|
10.4 %
|
8.7 %
|
7.9 %
|
12.7 %
|
23.4 %
|
|
Efficiency
ratio
|
70.9 %
|
79.1 %
|
80.4 %
|
75.9 %
|
62.2 %
|
|
HFI loan-to-deposit
ratio
|
85.0 %
|
76.3 %
|
68.5 %
|
67.2 %
|
68.8 %
|
|
Adjusted HFI
loan-to-deposit ratio (1)
|
88.5 %
|
71.9 %
|
64.1 %
|
60.5 %
|
60.3 %
|
|
(1) Excludes warehouse loans
and custodial deposits. See Non-GAAP Reconciliation for further
information.
|
|
Average Balance
Sheet Highlights
|
|
|
|
|
|
|
|
Three Months
Ended
|
%
Change
|
|
September
30,
2022
|
June 30,
2022
|
March 31,
2022
|
June 30,
2021
|
September
30,
2021
|
Seq
|
Yr/Yr
|
|
(Dollars in
millions)
|
|
|
|
Average
interest-earning assets
|
$
21,905
|
$
20,958
|
$
21,569
|
$
24,291
|
$
25,656
|
5 %
|
(15) %
|
|
Average loans
held-for-sale (LHFS)
|
2,976
|
3,571
|
4,833
|
6,384
|
7,839
|
(17) %
|
(62) %
|
|
Average loans
held-for-investment (LHFI)
|
14,640
|
13,339
|
12,384
|
13,314
|
13,540
|
10 %
|
8 %
|
|
Average total
deposits
|
17,216
|
17,488
|
18,089
|
19,816
|
19,686
|
(2) %
|
(13) %
|
Net Interest Income
Net interest income in the third quarter was $219 million, an increase of $26 million, or
13 percent, as compared to the second quarter 2022. The results
primarily reflect a $0.9 billion, or
5 percent, increase in average earning assets along with an
increase in net interest margin. We grew our loans held for
investment by $1.3 billion, led by
our residential mortgage and commercial portfolios. This growth was
partially offset by a $0.6 billion
decrease in our mortgage loans held-for-sale as a result of lower
mortgage volume.
Net interest margin in the third quarter was 3.98 percent, a 29
basis points increase compared to 3.69 percent in the prior
quarter. The net interest margin rose every month in the quarter
with a September net interest income of 4.07 percent which is
largely attributable to our asset sensitivity and our management of
deposit costs.
Average total deposits were $17.2
billion in the third quarter, down $0.3 billion, or 2 percent, from the second
quarter 2022, largely due to a decrease of $0.3 billion, or 4 percent, in average
retail deposits. Total interest-bearing deposit costs increased
only 15 basis points compared to short term market rates increasing
135 basis points.
Provision for Credit Losses
The provision for credit losses was $5
million for the third quarter, as compared to a $9 million benefit for the second quarter 2022.
The third quarter net provision was driven by an increase to the
reserve due to HFI loan growth which was focused in well
collateralized portfolios. The strong performance of our portfolio
continued with a low number of consumer non-accrual loans and no
commercial non-accrual loans at September 30, 2022.
Noninterest Income
Noninterest income decreased to $114
million in the third quarter, as compared to $131 million for the second quarter 2022,
primarily due to lower loan administration and fee income.
Third quarter net gain on loan sales increased $5 million, to $32
million, as compared to $27
million in the second quarter 2022. Gain on sale margins
increased 27 basis points to 66 basis points for the third quarter
2022, compared to 39 basis points for the second quarter 2022. The
improved result was driven by improved secondary marketing
performance which was partially offset by a 32 percent decline in
fallout-adjusted locks.
Our mortgage servicing rights portfolio yielded an annualized 12
percent return for the quarter. The net return on mortgage
servicing rights increased $4 million to $26 million for the third quarter 2022, compared
to a $22 million net return for the
second quarter 2022. We grew the MSR asset by $213 million and our return benefited from our
partial hedge position, which we transitioned to a fully hedged
position as rates rose during the quarter.
Loan administration income was $18
million for the third quarter 2022, as compared to
$33 million for the second quarter
2022. The decline in income was driven primarily by
higher LIBOR-based fee credits paid on custodial deposits that
are subserviced.
Loan fees and charges decreased $9 million to $20 million for the third quarter, compared to
$29 million for the second quarter
2022, primarily due to lower originations and lower ancillary fee
income driven by lower loss mitigation fees associated with loans
coming out of forbearance.
|
Mortgage
Metrics
|
|
|
|
|
|
|
|
As of/Three Months
Ended
|
Change (% /
bps)
|
|
September
30,
2022
|
June 30,
2022
|
March 31,
2022
|
December 31,
2021
|
September
30,
2021
|
Seq
|
Yr/Yr
|
|
(Dollars in
millions)
|
|
|
|
Mortgage rate lock
commitments (fallout-adjusted) (1) (2)
|
$
4,800
|
$
7,100
|
$
7,700
|
$
8,900
|
$
11,300
|
(32) %
|
(58) %
|
|
Mortgage loans closed
(1)
|
$
6,900
|
$
7,700
|
$
8,200
|
$ 10,700
|
$
12,500
|
(11) %
|
(45) %
|
|
Net margin on mortgage
rate lock commitments (fallout-adjusted) (2)
|
0.66 %
|
0.39 %
|
0.58 %
|
1.02 %
|
1.50 %
|
27
|
(84)
|
|
Net gain on loan
sales
|
$
32
|
$
27
|
$
45
|
$
91
|
$
169
|
19 %
|
(81) %
|
|
Net return on mortgage
servicing rights (MSR)
|
$
26
|
$
22
|
$
29
|
$
19
|
$
9
|
N/M
|
N/M
|
|
Gain on loan sales +
net return on the MSR
|
$
58
|
$
49
|
$
74
|
$
110
|
$
178
|
18 %
|
(67) %
|
|
Loans serviced (number
of accounts - 000's) (3)
|
1,421
|
1,383
|
1,256
|
1,234
|
1,203
|
3 %
|
18 %
|
|
Capitalized value of
MSRs
|
1.51 %
|
1.50 %
|
1.31 %
|
1.12 %
|
1.08 %
|
1
|
43
|
|
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 decreased to $236
million for the third quarter, compared to $256 million for the second quarter 2022.
Excluding $3 million of merger costs
in the second and third quarter of 2022, noninterest expense
decreased $20 million, or 8 percent,
primarily driven by our actions taken to reduce scale in the
mortgage business.
Mortgage expenses were $80 million
for the third quarter, a decrease of $10 million compared to
the prior quarter. The ratio of mortgage expenses to closings—our
mortgage expense ratio— was 1.12 percent, a decrease of 2 basis
points from the second quarter 2022. The reduction in expense was
primarily driven by the actions we have taken to reduce
mortgage costs. Additionally, we have taken a significant cost
cutting measure at the end of the quarter to reduce our mortgage
workforce by another 7 percent.
The efficiency ratio was 71 percent for the third quarter, as
compared to 79 percent for the second quarter 2022. Excluding
$3 million of merger expenses in the
third quarter of 2022, the adjusted efficiency ratio was 70 percent
and 78 percent, respectively.
Income Taxes
The third quarter provision for income taxes totaled
$19 million, with an effective tax
rate of 21.3 percent, compared to an effective tax rate of 21.7
percent for the second quarter 2022.
Asset Quality
|
Credit Quality
Ratios
|
|
|
|
|
|
|
|
As of/Three Months
Ended
|
Change (% /
bps)
|
|
September
30,
2022
|
June 30,
2022
|
March 31,
2022
|
December 31,
2021
|
September
30,
2021
|
Seq
|
Yr/Yr
|
|
(Dollars in
millions)
|
|
|
|
Allowance for credit
losses (1)
|
$
140
|
$
135
|
$
145
|
$
170
|
$
190
|
4 %
|
(26) %
|
|
Credit reserves to
LHFI
|
0.89 %
|
0.92 %
|
1.10 %
|
1.27 %
|
1.33 %
|
(3)
|
-44
|
|
Credit reserves to LHFI
excluding warehouse
|
1.14 %
|
1.27 %
|
1.64 %
|
1.96 %
|
2.29 %
|
(13)
|
(115)
|
|
Net
charge-offs
|
$
—
|
$
1
|
$
21
|
$
3
|
$
6
|
(100) %
|
(100) %
|
|
Total nonperforming
LHFI and TDRs
|
$
94
|
$
99
|
$
107
|
$
94
|
$
96
|
(5) %
|
(2) %
|
|
Net charge-offs to LHFI
ratio (annualized)
|
— %
|
0.03 %
|
0.69 %
|
0.08 %
|
0.19 %
|
(3)
|
(19)
|
|
Ratio of nonperforming
LHFI and TDRs to LHFI
|
0.59 %
|
0.68 %
|
0.80 %
|
0.70 %
|
0.66 %
|
(9)
|
(7)
|
|
|
|
|
|
|
|
|
|
Net
charge-offs/(recoveries) to LHFI ratio (annualized) by loan type
(2):
|
|
|
|
Residential first
mortgage
|
0.06 %
|
0.12 %
|
0.31 %
|
0.04 %
|
— %
|
(6)
|
6
|
|
Home equity and other
consumer
|
0.24 %
|
0.09 %
|
0.07 %
|
0.14 %
|
0.01 %
|
15
|
23
|
|
Commercial real
estate
|
— %
|
— %
|
— %
|
— %
|
0.03 %
|
—
|
(3)
|
|
Commercial and
industrial
|
(0.24) %
|
0.02 %
|
4.31 %
|
0.53 %
|
1.87 %
|
(26)
|
(211)
|
|
N/M - Not
meaningful
|
|
|
|
|
|
|
|
|
(1)
|
Includes
the allowance for loan losses and the reserve on unfunded
commitments.
|
|
(2)
|
Excludes
loans carried under the fair value option.
|
Our portfolio continues to exhibit strong credit quality that
resulted in a small net recovery in the third quarter 2022. This
compares to net charge-offs of $1
million, or 3 basis points, in the prior quarter.
Nonperforming loans held-for-investment and troubled debt
restructurings (TDRs) were $94
million at the end of the third quarter, a decrease of
$5 million as compared to the second
quarter 2022. Our ratio of nonperforming loans held-for-investment
and TDRs to loans held-for-investment was 0.59% basis points at
September 30, 2022, a 9 basis point decrease compared to
June 30, 2022. At September 30,
2022, early stage loan delinquencies totaled $34 million, or 22 basis points of total loans,
compared to $22 million, or 15 basis
points, at June 30, 2022.
The allowance for credit losses was $140 million and
covered 0.89 percent of loans held-for-investment at
September 30, 2022, a 3 basis point decrease from June 30, 2022. Excluding warehouse loans, the
allowance coverage ratio was 1.14 percent, a 13 basis point
decrease from June 30, 2022. The
increase in the allowance for credit losses reflects growth in our
HFI loan portfolio. Loan growth occurred in well-collateralized
portfolios, including $944 million in
residential first mortgage and $340
million in MSR loans (included in our C&I portfolio)
which have lower reserve levels. The impact of this loan growth was
partially offset by reductions in our reserves related to
residential first mortgages, consumer loans and our loans with
government guarantees as a result of pay-offs and improvements in
the delinquency trends of expired forbearance loans. Overall, our
portfolio quality remains solid with low levels of nonperforming
loans and low delinquency levels, including no commercial
nonperforming loans.
Capital
|
Capital Ratios
(Bancorp)
|
|
Change (% /
bps)
|
|
September
30,
2022
|
June 30,
2022
|
March 31,
2022
|
December 31,
2021
|
September
30,
2021
|
Seq
|
Yr/Yr
|
|
Tier 1 leverage (to
adj. avg. total assets)
|
11.06 %
|
12.17 %
|
11.83 %
|
10.54 %
|
9.72 %
|
(111)
|
134
|
|
Tier 1 common equity
(to RWA)
|
11.97 %
|
13.22 %
|
13.89 %
|
13.19 %
|
11.95 %
|
(125)
|
2
|
|
Tier 1 capital (to
RWA)
|
13.11 %
|
14.41 %
|
15.17 %
|
14.43 %
|
13.11 %
|
(130)
|
—
|
|
Total capital (to
RWA)
|
14.32 %
|
15.68 %
|
16.59 %
|
15.88 %
|
14.55 %
|
(136)
|
(23)
|
|
Tangible common equity
to asset ratio (1)
|
9.73 %
|
10.25 %
|
11.13 %
|
10.09 %
|
9.23 %
|
(52)
|
50
|
|
Tangible book value per
share (1)
|
$
46.42
|
$
47.83
|
$
48.61
|
$
48.33
|
$
47.21
|
(3) %
|
(2) %
|
|
(1) See Non-GAAP
Reconciliation for further information.
|
We maintained a strong capital position with regulatory ratios
above current regulatory quantitative guidelines for "well
capitalized" institutions. Further demonstrating our capital
strength, the capital ratios are impacted by a 100 percent
risk-weighting of the warehouse loan portfolio—the largest
component of the held-for-investment portfolio. Adjusting the
risk-weighting of warehouse loans to 50 percent because of
historically low levels of losses from this portfolio, coupled with
the fact that the portfolio is fully collateralized with assets
that would receive a 50 percent risk weighting, we would have had a
Tier 1 common equity ratio of 12.97 percent and a total risk-based
capital ratio of 15.52 percent at September 30, 2022.
Tangible book value per share declined to $46.42, down $1.41,
or 3 percent from last quarter due to a $150 million decline
in other comprehensive income primarily driven by the impact of
higher interest rates on our investment securities portfolio.
About Flagstar
Flagstar Bancorp, Inc. (NYSE: FBC) is a $25.4 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 81 retail locations in 26 states. Flagstar is a leading
national originator and servicer of mortgage and other consumer
loans, handling payments and record keeping for $360 billion
of loans representing more than 1.4 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
periodic Flagstar reports filed with the U.S. Securities and
Exchange Commission, which are available on the Company's website
at flagstar.com.
Cautionary Statements Regarding Forward-Looking Statements
Certain statements in this press release may constitute
"forward‐looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, with respect to
Flagstar's beliefs, goals, intentions, and expectations regarding
revenues, earnings, loan production, asset quality, capital levels,
and acquisitions, among other matters; Flagstar's estimates of
future costs and benefits of the actions each company may take;
Flagstar's assessments of probable losses on loans; Flagstar's
assessments of interest rate and other market risks; and Flagstar's
ability to achieve its respective financial and other strategic
goals. Forward‐looking statements are typically identified by such
words as "believe," "expect," "anticipate," "intend," "outlook,"
"estimate," "forecast," "project," "should," and other similar
words and expressions, and are subject to numerous assumptions,
risks, and uncertainties, which change over time. Forward‐looking
statements speak only as of the date they are made; Flagstar does
not assume any duty, and does not undertake, to update such
forward‐looking statements. Furthermore, because forward‐looking
statements are subject to assumptions and uncertainties, actual
results or future events could differ, possibly materially, from
those indicated in such forward-looking statements depending upon
various factors as described in the "Risk Factors" section in
Flagstar's Annual Report on Form 10-K for the year ended
December 31, 2021 and in Flagstar's
other filings with SEC, which are available at http://www.sec.gov
and in the "Documents" section of Flagstar's website,
https://investors.flagstar.com.
|
Flagstar Bancorp,
Inc.
Consolidated Statements of Financial
Condition
(Dollars in millions)
(Unaudited)
|
|
|
September
30,
2022
|
|
June 30,
2022
|
|
December 31,
2021
|
|
September
30,
2021
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash
|
$
313
|
|
$
198
|
|
$
277
|
|
$
103
|
|
Interest-earning
deposits
|
105
|
|
237
|
|
774
|
|
46
|
|
Total cash and cash
equivalents
|
418
|
|
435
|
|
1,051
|
|
149
|
|
Investment securities
available-for-sale
|
2,627
|
|
2,346
|
|
1,804
|
|
1,802
|
|
Investment securities
held-to-maturity
|
159
|
|
173
|
|
205
|
|
236
|
|
Loans
held-for-sale
|
1,830
|
|
3,482
|
|
5,054
|
|
6,378
|
|
Loans
held-for-investment
|
15,793
|
|
14,655
|
|
13,408
|
|
14,268
|
|
Loans with government
guarantees
|
1,370
|
|
1,144
|
|
1,650
|
|
1,945
|
|
Less: allowance for
loan losses
|
(126)
|
|
(122)
|
|
(154)
|
|
(171)
|
|
Total loans
held-for-investment and loans with government guarantees,
net
|
17,037
|
|
15,677
|
|
14,904
|
|
16,042
|
|
Mortgage servicing
rights
|
1,026
|
|
622
|
|
392
|
|
340
|
|
Federal Home Loan Bank
stock
|
329
|
|
329
|
|
377
|
|
377
|
|
Premises and
equipment, net
|
354
|
|
354
|
|
360
|
|
370
|
|
Goodwill and
intangible assets
|
140
|
|
142
|
|
147
|
|
149
|
|
Bank-owned life
insurance
|
372
|
|
370
|
|
365
|
|
363
|
|
Other
assets
|
1,151
|
|
969
|
|
824
|
|
836
|
|
Total
assets
|
$
25,443
|
|
$
24,899
|
|
$
25,483
|
|
$
27,042
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
$
6,802
|
|
$
6,664
|
|
$
7,088
|
|
$
8,108
|
|
Interest-bearing
deposits
|
9,789
|
|
9,984
|
|
10,921
|
|
11,228
|
|
Total
deposits
|
16,591
|
|
16,648
|
|
18,009
|
|
19,336
|
|
Short-term Federal
Home Loan Bank advances and other
|
3,450
|
|
3,301
|
|
1,880
|
|
1,870
|
|
Long-term Federal Home
Loan Bank advances
|
1,000
|
|
700
|
|
1,400
|
|
1,400
|
|
Other long-term
debt
|
390
|
|
394
|
|
396
|
|
396
|
|
Loan with government
guarantees repurchase liability
|
156
|
|
101
|
|
200
|
|
163
|
|
Other
liabilities
|
1,240
|
|
1,062
|
|
880
|
|
1,232
|
|
Total
liabilities
|
22,827
|
|
22,206
|
|
22,765
|
|
24,397
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
Common
stock
|
1
|
|
1
|
|
1
|
|
1
|
|
Additional paid in
capital
|
1,361
|
|
1,358
|
|
1,355
|
|
1,362
|
|
Accumulated other
comprehensive income
|
(249)
|
|
(99)
|
|
35
|
|
38
|
|
Retained
earnings
|
1,503
|
|
1,433
|
|
1,327
|
|
1,244
|
|
Total stockholders'
equity
|
2,616
|
|
2,693
|
|
2,718
|
|
2,645
|
|
Total liabilities and
stockholders' equity
|
$
25,443
|
|
$
24,899
|
|
$
25,483
|
|
$
27,042
|
|
Flagstar Bancorp,
Inc.
Condensed Consolidated Statements of
Operations
(Dollars in millions, except per share data)
(Unaudited)
|
|
|
|
|
Change compared
to:
|
|
Three Months
Ended
|
|
2Q22
|
|
3Q21
|
|
September
30,
2022
|
June 30,
2022
|
March 31,
2022
|
December 31,
2021
|
September
30,
2021
|
|
Amount
|
Percent
|
|
Amount
|
Percent
|
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
income
|
$
254
|
$
209
|
$
177
|
$
196
|
$
209
|
|
$ 45
|
22 %
|
|
$ 45
|
22 %
|
|
Total interest
expense
|
35
|
16
|
12
|
15
|
14
|
|
19
|
119 %
|
|
21
|
150 %
|
|
Net interest
income
|
219
|
193
|
165
|
181
|
195
|
|
26
|
13 %
|
|
24
|
12 %
|
|
Provision (benefit)
for credit losses
|
5
|
(9)
|
(4)
|
(17)
|
(23)
|
|
14
|
N/M
|
|
28
|
(122) %
|
|
Net interest income
after
provision for credit losses
|
214
|
202
|
169
|
198
|
218
|
|
12
|
6 %
|
|
(4)
|
(2) %
|
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain on loan
sales
|
32
|
27
|
45
|
91
|
169
|
|
5
|
19 %
|
|
(137)
|
(81) %
|
|
Loan fees and
charges
|
20
|
29
|
27
|
29
|
33
|
|
(9)
|
(31) %
|
|
(13)
|
(39) %
|
|
Net return on the
mortgage
servicing rights
|
26
|
22
|
29
|
19
|
9
|
|
4
|
18 %
|
|
17
|
N/M
|
|
Loan administration
income
|
18
|
33
|
33
|
36
|
31
|
|
(15)
|
(45) %
|
|
(13)
|
(42) %
|
|
Deposit fees and
charges
|
8
|
9
|
9
|
8
|
9
|
|
(1)
|
(11) %
|
|
(1)
|
(11) %
|
|
Other noninterest
income
|
10
|
11
|
17
|
19
|
15
|
|
(1)
|
(9) %
|
|
(5)
|
(33) %
|
|
Total noninterest
income
|
114
|
131
|
160
|
202
|
266
|
|
(17)
|
(13) %
|
|
(152)
|
(57) %
|
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
113
|
122
|
127
|
137
|
130
|
|
(9)
|
(7) %
|
|
(17)
|
(13) %
|
|
Occupancy and
equipment
|
45
|
46
|
45
|
47
|
46
|
|
(1)
|
(2) %
|
|
(1)
|
(2) %
|
|
Commissions
|
15
|
22
|
26
|
38
|
44
|
|
(7)
|
(32) %
|
|
(29)
|
(66) %
|
|
Loan processing
expense
|
21
|
23
|
21
|
21
|
22
|
|
(2)
|
(9) %
|
|
(1)
|
(5) %
|
|
Legal and
professional
expense
|
11
|
10
|
11
|
13
|
12
|
|
1
|
10 %
|
|
(1)
|
(8) %
|
|
Federal insurance
premiums
|
4
|
4
|
4
|
4
|
6
|
|
—
|
— %
|
|
(2)
|
(33) %
|
|
Intangible asset
amortization
|
2
|
3
|
2
|
3
|
3
|
|
(1)
|
(33) %
|
|
(1)
|
(33) %
|
|
Other noninterest
expense
|
25
|
26
|
25
|
28
|
23
|
|
(1)
|
(4) %
|
|
2
|
9 %
|
|
Total noninterest
expense
|
236
|
256
|
261
|
291
|
286
|
|
(20)
|
(8) %
|
|
(50)
|
(17) %
|
|
Income before income
taxes
|
92
|
77
|
68
|
109
|
198
|
|
15
|
19 %
|
|
(106)
|
(54) %
|
|
Provision for income
taxes
|
19
|
17
|
15
|
24
|
46
|
|
2
|
12 %
|
|
(27)
|
(59) %
|
|
Net income
|
$
73
|
$
60
|
$
53
|
$
85
|
$
152
|
|
$ 13
|
22 %
|
|
$
(79)
|
(52) %
|
|
Income per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
1.36
|
$
1.13
|
$
0.99
|
$
1.62
|
$
2.87
|
|
$
0.23
|
20 %
|
|
$
(1.51)
|
(53) %
|
|
Diluted
|
$
1.35
|
$
1.12
|
$
0.99
|
$
1.60
|
$
2.83
|
|
$
0.23
|
21 %
|
|
$
(1.48)
|
(52) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared
|
$
0.06
|
$
0.06
|
$
0.06
|
$
0.06
|
$
0.06
|
|
$ —
|
— %
|
|
$ —
|
— %
|
|
N/M - Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
Flagstar Bancorp,
Inc.
Condensed Consolidated Statements of
Operations
(Dollars in millions, except per share data)
(Unaudited)
|
|
|
Nine Months
Ended
|
|
Change
|
|
September
30,
2022
|
|
September
30,
2021
|
|
Amount
|
|
Percent
|
|
Interest
Income
|
|
|
|
|
|
|
|
|
Total interest
income
|
$
640
|
|
$
614
|
|
$
26
|
|
4 %
|
|
Total interest
expense
|
63
|
|
48
|
|
15
|
|
31 %
|
|
Net interest
income
|
577
|
|
566
|
|
11
|
|
2 %
|
|
(Benefit) provision
for credit losses
|
(8)
|
|
(95)
|
|
87
|
|
N/M
|
|
Net interest income
after provision for credit losses
|
585
|
|
661
|
|
(76)
|
|
(11) %
|
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
Net gain on loan
sales
|
104
|
|
564
|
|
(460)
|
|
(82) %
|
|
Loan fees and
charges
|
76
|
|
112
|
|
(36)
|
|
(32) %
|
|
Net return (loss) on
the mortgage servicing rights
|
77
|
|
4
|
|
73
|
|
1,825 %
|
|
Loan administration
income
|
84
|
|
85
|
|
(1)
|
|
(1) %
|
|
Deposit fees and
charges
|
26
|
|
26
|
|
—
|
|
— %
|
|
Other noninterest
income
|
38
|
|
51
|
|
(13)
|
|
(25) %
|
|
Total noninterest
income
|
405
|
|
842
|
|
(437)
|
|
(52) %
|
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
362
|
|
396
|
|
(34)
|
|
(9) %
|
|
Occupancy and
equipment
|
136
|
|
141
|
|
(5)
|
|
(4) %
|
|
Commissions
|
63
|
|
156
|
|
(93)
|
|
(60) %
|
|
Loan processing
expense
|
65
|
|
65
|
|
—
|
|
— %
|
|
Legal and professional
expense
|
32
|
|
32
|
|
—
|
|
— %
|
|
Federal insurance
premiums
|
12
|
|
16
|
|
(4)
|
|
(25) %
|
|
Intangible asset
amortization
|
7
|
|
8
|
|
(1)
|
|
(13) %
|
|
Other noninterest
expense
|
76
|
|
108
|
|
(32)
|
|
(30) %
|
|
Total noninterest
expense
|
753
|
|
922
|
|
(169)
|
|
(18) %
|
|
Income before income
taxes
|
237
|
|
581
|
|
(344)
|
|
(59) %
|
|
Provision for income
taxes
|
51
|
|
133
|
|
(82)
|
|
(62) %
|
|
Net income
|
$
186
|
|
$
448
|
|
$
(262)
|
|
(58) %
|
|
Income per
share
|
|
|
|
|
|
|
|
|
Basic
|
$
3.49
|
|
$
8.48
|
|
$
(4.99)
|
|
(59) %
|
|
Diluted
|
$
3.47
|
|
$
8.37
|
|
$
(4.90)
|
|
(59) %
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared
|
$
0.18
|
|
$
0.18
|
|
$
—
|
|
— %
|
|
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
|
|
Nine Months
Ended
|
|
September
30,
2022
|
|
June 30,
2022
|
|
September
30,
2021
|
|
September
30,
2022
|
|
September
30,
2021
|
|
Selected Mortgage
Statistics (1):
|
|
|
|
|
|
|
|
|
|
|
Mortgage rate lock
commitments (fallout-adjusted) (2)
|
$
4,800
|
|
$ 7,100
|
|
$ 11,300
|
|
$ 11,800
|
|
$ 36,000
|
|
Mortgage loans
closed
|
$
6,900
|
|
$ 7,700
|
|
$ 12,500
|
|
$ 14,600
|
|
$ 39,100
|
|
Mortgage loans sold
and securitized
|
$
7,200
|
|
$ 6,900
|
|
$ 12,400
|
|
$ 14,100
|
|
$ 40,100
|
|
Selected
Ratios:
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(3)
|
3.62 %
|
|
3.47 %
|
|
2.84 %
|
|
3.33 %
|
|
2.70 %
|
|
Net interest
margin
|
3.98 %
|
|
3.69 %
|
|
3.00 %
|
|
3.60 %
|
|
2.90 %
|
|
Net margin on loans
sold and securitized
|
0.4 %
|
|
0.4 %
|
|
1.4 %
|
|
0.7 %
|
|
1.4 %
|
|
Return on average
assets
|
1.2 %
|
|
1.0 %
|
|
2.2 %
|
|
1.0 %
|
|
2.1 %
|
|
Adjusted return on
average assets (4)
|
1.2 %
|
|
1.1 %
|
|
2.2 %
|
|
1.1 %
|
|
2.2 %
|
|
Return on average
common equity
|
10.4 %
|
|
8.7 %
|
|
23.4 %
|
|
9.0 %
|
|
24.3 %
|
|
Return on average
tangible common equity (5)
|
11.2 %
|
|
9.5 %
|
|
25.2 %
|
|
9.8 %
|
|
24.7 %
|
|
Adjusted return on
average tangible common equity (4) (5)
|
11.9 %
|
|
10.1 %
|
|
26.2 %
|
|
10.4 %
|
|
27.2 %
|
|
Efficiency
ratio
|
70.9 %
|
|
79.1 %
|
|
62.2 %
|
|
76.7 %
|
|
65.5 %
|
|
Adjusted efficiency
ratio (4)
|
69.8 %
|
|
78.1 %
|
|
61.1 %
|
|
75.8 %
|
|
62.8 %
|
|
Common
equity-to-assets ratio (average for the period)
|
11.1 %
|
|
11.5 %
|
|
9.2 %
|
|
11.2 %
|
|
8.6 %
|
|
Average
Balances:
|
|
|
|
|
|
|
|
|
|
|
Average
interest-earning assets
|
$ 21,905
|
|
$
20,958
|
|
$ 25,656
|
|
$ 21,479
|
|
$ 26,029
|
|
Average
interest-bearing liabilities
|
$ 14,075
|
|
$
12,889
|
|
$ 15,590
|
|
$ 13,313
|
|
$ 15,083
|
|
Average stockholders'
equity
|
$
2,785
|
|
$ 2,754
|
|
$
2,592
|
|
$
2,742
|
|
$
2,454
|
|
(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.
|
|
September
30,
2022
|
|
June 30,
2022
|
|
December 31,
2021
|
|
September
30,
2021
|
|
Selected
Statistics:
|
|
|
|
|
|
|
|
|
Book value per common
share
|
$
49.05
|
|
$
50.50
|
|
$
51.09
|
|
$
50.04
|
|
Tangible book value
per share (1)
|
$
46.42
|
|
$
47.83
|
|
$
48.33
|
|
$
47.21
|
|
Number of common
shares outstanding
|
53,330,827
|
|
53,329,993
|
|
53,197,650
|
|
52,862,383
|
|
Number of FTE
employees
|
4,911
|
|
5,036
|
|
5,395
|
|
5,461
|
|
Number of bank
branches
|
158
|
|
158
|
|
158
|
|
158
|
|
Ratio of nonperforming
assets to total assets (2)
|
0.39 %
|
|
0.42 %
|
|
0.39 %
|
|
0.37 %
|
|
Common
equity-to-assets ratio
|
10.3 %
|
|
10.8 %
|
|
10.7 %
|
|
9.8 %
|
|
MSR Key Statistics
and Ratios:
|
|
|
|
|
|
|
|
|
Weighted average
service fee (basis points)
|
30.8
|
|
31.7
|
|
31.5
|
|
32.1
|
|
Capitalized value of
mortgage servicing rights
|
1.51 %
|
|
1.50 %
|
|
1.12 %
|
|
1.08 %
|
|
(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
|
|
September 30,
2022
|
|
June 30,
2022
|
|
September 30,
2021
|
|
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
|
$
2,976
|
$
34
|
4.58 %
|
|
$ 3,571
|
$
36
|
4.10 %
|
|
$ 7,839
|
$
63
|
3.22 %
|
|
Loans
held-for-investment
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential first
mortgage
|
2,633
|
26
|
3.97 %
|
|
1,789
|
16
|
3.68 %
|
|
1,706
|
14
|
3.14 %
|
|
Home equity
|
699
|
11
|
6.29 %
|
|
614
|
7
|
4.74 %
|
|
686
|
6
|
3.64 %
|
|
Other
|
1,381
|
17
|
4.99 %
|
|
1,302
|
16
|
4.80 %
|
|
1,177
|
14
|
4.76 %
|
|
Total consumer
loans
|
4,713
|
54
|
4.61 %
|
|
3,705
|
39
|
4.25 %
|
|
3,569
|
34
|
3.77 %
|
|
Commercial real
estate
|
3,542
|
49
|
5.40 %
|
|
3,366
|
41
|
4.78 %
|
|
3,238
|
28
|
3.43 %
|
|
Commercial and
industrial
|
2,844
|
37
|
5.06 %
|
|
2,169
|
26
|
4.65 %
|
|
1,341
|
12
|
3.56 %
|
|
Warehouse
lending
|
3,541
|
42
|
4.63 %
|
|
4,099
|
34
|
3.27 %
|
|
5,392
|
52
|
3.76 %
|
|
Total commercial
loans
|
9,927
|
128
|
5.03 %
|
|
9,634
|
101
|
4.11 %
|
|
9,971
|
92
|
3.62 %
|
|
Total loans
held-for-investment
|
14,640
|
182
|
4.90 %
|
|
13,339
|
140
|
4.15 %
|
|
13,540
|
126
|
3.66 %
|
|
Loans with government
guarantees
|
1,275
|
14
|
4.39 %
|
|
1,161
|
15
|
5.13 %
|
|
2,046
|
8
|
1.61 %
|
|
Investment
securities
|
2,723
|
22
|
3.32 %
|
|
2,310
|
17
|
2.89 %
|
|
2,058
|
12
|
2.15 %
|
|
Interest-earning
deposits
|
291
|
2
|
1.83 %
|
|
577
|
1
|
0.64 %
|
|
173
|
—
|
0.18 %
|
|
Total interest-earning
assets
|
21,905
|
$
254
|
4.59 %
|
|
20,958
|
$
209
|
3.96 %
|
|
25,656
|
$
209
|
3.22 %
|
|
Other
assets
|
3,243
|
|
|
|
2,909
|
|
|
|
2,391
|
|
|
|
Total
assets
|
$ 25,148
|
|
|
|
$
23,867
|
|
|
|
$
28,047
|
|
|
|
Interest-Bearing
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
$
1,640
|
$
1
|
0.34 %
|
|
$ 1,725
|
$
1
|
0.10 %
|
|
$ 1,603
|
$
—
|
0.05 %
|
|
Savings
deposits
|
4,082
|
3
|
0.27 %
|
|
4,251
|
2
|
0.16 %
|
|
4,144
|
2
|
0.14 %
|
|
Money market
deposits
|
854
|
1
|
0.28 %
|
|
926
|
—
|
0.16 %
|
|
840
|
—
|
0.08 %
|
|
Certificates of
deposit
|
848
|
1
|
0.58 %
|
|
851
|
1
|
0.35 %
|
|
1,038
|
1
|
0.50 %
|
|
Total retail
deposits
|
7,424
|
6
|
0.32 %
|
|
7,753
|
4
|
0.17 %
|
|
7,625
|
3
|
0.16 %
|
|
Government
deposits
|
1,731
|
4
|
0.93 %
|
|
1,699
|
1
|
0.32 %
|
|
2,148
|
1
|
0.17 %
|
|
Wholesale deposits and
other
|
830
|
1
|
0.73 %
|
|
935
|
2
|
0.98 %
|
|
1,342
|
3
|
0.99 %
|
|
Total interest-bearing
deposits
|
9,985
|
11
|
0.46 %
|
|
10,387
|
7
|
0.26 %
|
|
11,115
|
7
|
0.26 %
|
|
Short-term FHLB
advances and other
|
2,653
|
15
|
2.23 %
|
|
1,124
|
3
|
1.05 %
|
|
2,736
|
1
|
0.18 %
|
|
Long-term FHLB
advances
|
1,041
|
4
|
1.35 %
|
|
982
|
3
|
1.15 %
|
|
1,343
|
3
|
0.92 %
|
|
Other long-term
debt
|
396
|
5
|
4.40 %
|
|
396
|
3
|
3.07 %
|
|
396
|
3
|
3.16 %
|
|
Total interest-bearing
liabilities
|
14,075
|
$
35
|
0.96 %
|
|
12,889
|
$
16
|
0.48 %
|
|
15,590
|
14
|
0.38 %
|
|
Noninterest-bearing
deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail deposits and
other
|
2,550
|
|
|
|
2,460
|
|
|
|
2,391
|
|
|
|
Custodial deposits
(1)
|
4,681
|
|
|
|
4,641
|
|
|
|
6,180
|
|
|
|
Total
noninterest-bearing deposits
|
7,231
|
|
|
|
7,101
|
|
|
|
8,571
|
|
|
|
Other
liabilities
|
1,057
|
|
|
|
1,123
|
|
|
|
1,294
|
|
|
|
Stockholders'
equity
|
2,785
|
|
|
|
2,754
|
|
|
|
2,592
|
|
|
|
Total liabilities and
stockholders'
equity
|
$ 25,148
|
|
|
|
$
23,867
|
|
|
|
$
28,047
|
|
|
|
Net interest-earning
assets
|
$
7,830
|
|
|
|
$ 8,069
|
|
|
|
$
10,066
|
|
|
|
Net interest
income
|
|
$
219
|
|
|
|
$
193
|
|
|
|
$
195
|
|
|
Interest rate spread
(2)
|
|
|
3.62 %
|
|
|
|
3.47 %
|
|
|
|
2.84 %
|
|
Net interest margin
(3)
|
|
|
3.98 %
|
|
|
|
3.69 %
|
|
|
|
3.00 %
|
|
Ratio of average
interest-earning assets to
interest-bearing liabilities
|
|
|
155.6 %
|
|
|
|
162.6 %
|
|
|
|
164.6 %
|
|
Total average
deposits
|
$ 17,216
|
|
|
|
$
17,488
|
|
|
|
$
19,686
|
|
|
|
(1)
|
Approximately 70
percent of custodial deposits from loans subserviced for which
LIBOR based fees are 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)
|
|
|
Nine Months
Ended
|
|
September 30,
2022
|
|
September 30,
2021
|
|
Average
Balance
|
Interest
|
Annualized
Yield/Rate
|
|
Average
Balance
|
Interest
|
Annualized
Yield/Rate
|
|
Interest-Earning
Assets
|
|
|
Loans
held-for-sale
|
$
3,787
|
$
111
|
3.89 %
|
|
$
7,403
|
$
169
|
3.04 %
|
|
Loans
held-for-investment
|
|
|
|
|
|
|
|
|
Residential first
mortgage
|
1,978
|
55
|
3.72 %
|
|
1,907
|
46
|
3.21 %
|
|
Home equity
|
637
|
24
|
5.10 %
|
|
751
|
20
|
3.59 %
|
|
Other
|
1,313
|
48
|
4.88 %
|
|
1,106
|
40
|
4.78 %
|
|
Total consumer
loans
|
3,928
|
127
|
4.33 %
|
|
3,764
|
106
|
3.75 %
|
|
Commercial real
estate
|
3,379
|
119
|
4.63 %
|
|
3,125
|
80
|
3.38 %
|
|
Commercial and
industrial
|
2,286
|
78
|
4.52 %
|
|
1,425
|
39
|
3.60 %
|
|
Warehouse
lending
|
3,869
|
108
|
3.68 %
|
|
5,729
|
170
|
3.91 %
|
|
Total commercial
loans
|
9,534
|
305
|
4.22 %
|
|
10,279
|
289
|
3.71 %
|
|
Total loans
held-for-investment
|
13,462
|
432
|
4.25 %
|
|
14,043
|
395
|
3.72 %
|
|
Loans with government
guarantees
|
1,279
|
44
|
4.62 %
|
|
2,295
|
15
|
0.95 %
|
|
Investment
securities
|
2,354
|
50
|
2.85 %
|
|
2,130
|
35
|
2.19 %
|
|
Interest-earning
deposits
|
597
|
3
|
0.59 %
|
|
158
|
—
|
0.15 %
|
|
Total interest-earning
assets
|
21,479
|
$
640
|
3.96 %
|
|
26,029
|
$
614
|
3.13 %
|
|
Other
assets
|
2,918
|
|
|
|
2,672
|
|
|
|
Total
assets
|
$
24,397
|
|
|
|
$
28,701
|
|
|
|
Interest-Bearing
Liabilities
|
|
|
|
|
|
|
|
|
Retail
deposits
|
|
|
|
|
|
|
|
|
Demand
deposits
|
$
1,664
|
$
2
|
0.18 %
|
|
$
1,713
|
$
1
|
0.06 %
|
|
Savings
deposits
|
4,195
|
6
|
0.19 %
|
|
4,058
|
4
|
0.14 %
|
|
Money market
deposits
|
889
|
1
|
0.18 %
|
|
763
|
—
|
0.07 %
|
|
Certificates of
deposit
|
876
|
3
|
0.43 %
|
|
1,152
|
6
|
0.71 %
|
|
Total retail
deposits
|
7,624
|
12
|
0.21 %
|
|
7,686
|
11
|
0.20 %
|
|
Government
deposits
|
1,769
|
6
|
0.47 %
|
|
1,907
|
3
|
0.19 %
|
|
Wholesale deposits and
other
|
944
|
6
|
0.87 %
|
|
1,182
|
11
|
1.27 %
|
|
Total interest-bearing
deposits
|
10,337
|
24
|
0.32 %
|
|
10,775
|
25
|
0.32 %
|
|
Short-term FHLB
advances and other
|
1,486
|
18
|
1.64 %
|
|
2,646
|
3
|
0.17 %
|
|
Long-term FHLB
advances
|
1,094
|
10
|
1.15 %
|
|
1,248
|
9
|
0.99 %
|
|
Other long-term
debt
|
396
|
11
|
3.54 %
|
|
414
|
11
|
3.50 %
|
|
Total interest-bearing
liabilities
|
13,313
|
$
63
|
0.63 %
|
|
15,083
|
$
48
|
0.43 %
|
|
Noninterest-bearing
deposits
|
|
|
|
|
|
|
|
|
Retail deposits and
other
|
2,495
|
|
|
|
2,307
|
|
|
|
Custodial deposits
(1)
|
4,763
|
|
|
|
6,517
|
|
|
|
Total
noninterest-bearing deposits
|
7,258
|
|
|
|
8,824
|
|
|
|
Other
liabilities
|
1,084
|
|
|
|
2,340
|
|
|
|
Stockholders'
equity
|
2,742
|
|
|
|
2,454
|
|
|
|
Total liabilities and
stockholders' equity
|
$
24,397
|
|
|
|
$
28,701
|
|
|
|
Net interest-earning
assets
|
$
8,166
|
|
|
|
$
10,946
|
|
|
|
Net interest
income
|
|
$
577
|
|
|
|
$
566
|
|
|
Interest rate spread
(2)
|
|
|
3.33 %
|
|
|
|
2.70 %
|
|
Net interest margin
(3)
|
|
|
3.60 %
|
|
|
|
2.90 %
|
|
Ratio of average
interest-earning assets to interest-bearing liabilities
|
|
|
161.3 %
|
|
|
|
172.6 %
|
|
Total average
deposits
|
$
17,595
|
|
|
|
$
19,598
|
|
|
|
(1)
|
Approximately 70
percent of custodial deposits from loans subserviced for which
LIBOR based fees are 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
|
|
Nine Months
Ended
|
|
September
30,
2022
|
|
June 30,
2022
|
|
September
30,
2021
|
|
September
30,
2022
|
|
September
30,
2021
|
|
Net income
|
$
73
|
|
$
60
|
|
$
152
|
|
$
186
|
|
$
448
|
|
Weighted average
common shares outstanding
|
53,330,518
|
|
53,269,631
|
|
52,862,288
|
|
53,273,743
|
|
52,767,923
|
|
Stock-based
awards
|
279,748
|
|
265,817
|
|
797,134
|
|
300,947
|
|
731,366
|
|
Weighted average
diluted common shares
|
53,610,266
|
|
53,535,448
|
|
53,659,422
|
|
53,574,690
|
|
53,499,289
|
|
Basic earnings per
common share
|
$
1.36
|
|
$
1.13
|
|
$
2.87
|
|
$
3.49
|
|
$
8.48
|
|
Stock-based
awards
|
(0.01)
|
|
(0.01)
|
|
(0.04)
|
|
(0.02)
|
|
(0.11)
|
|
Diluted earnings per
common share
|
$
1.35
|
|
$
1.12
|
|
$
2.83
|
|
$
3.47
|
|
$
8.37
|
|
Regulatory Capital -
Bancorp
(Dollars in millions)
(Unaudited)
|
|
|
September 30,
2022
|
|
June 30,
2022
|
|
December 31,
2021
|
|
September 30,
2021
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Tier 1 leverage (to
adjusted avg. total assets)
|
$ 2,759
|
11.06 %
|
|
$ 2,900
|
12.17 %
|
|
$ 2,798
|
10.54 %
|
|
$ 2,709
|
9.72 %
|
|
Total adjusted avg.
total asset base
|
$
24,939
|
|
|
$
23,835
|
|
|
$
26,545
|
|
|
$
27,863
|
|
|
Tier 1 common equity
(to risk weighted assets)
|
$ 2,519
|
11.97 %
|
|
$ 2,660
|
13.22 %
|
|
$ 2,558
|
13.19 %
|
|
$ 2,469
|
11.95 %
|
|
Tier 1 capital (to
risk weighted assets)
|
$ 2,759
|
13.11 %
|
|
$ 2,900
|
14.41 %
|
|
$ 2,798
|
14.43 %
|
|
$ 2,709
|
13.11 %
|
|
Total capital (to risk
weighted assets)
|
$ 3,015
|
14.32 %
|
|
$ 3,155
|
15.68 %
|
|
$ 3,080
|
15.88 %
|
|
$ 3,006
|
14.55 %
|
|
Risk-weighted asset
base
|
$
21,047
|
|
|
$
20,130
|
|
|
$
19,397
|
|
|
$
20,664
|
|
|
Regulatory Capital -
Bank
(Dollars in millions)
(Unaudited)
|
|
|
September 30,
2022
|
|
June 30,
2022
|
|
December 31,
2021
|
|
September 30,
2021
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Amount
|
Ratio
|
|
Tier 1 leverage (to
adjusted avg. total assets)
|
$ 2,741
|
10.99 %
|
|
$ 2,824
|
11.87 %
|
|
$ 2,706
|
10.21 %
|
|
$ 2,619
|
9.40 %
|
|
Total adjusted avg.
total asset base
|
$
24,938
|
|
|
$
23,786
|
|
|
$
26,502
|
|
|
$
27,851
|
|
|
Tier 1 common equity
(to risk weighted assets)
|
$ 2,741
|
12.96 %
|
|
$ 2,824
|
14.04 %
|
|
$ 2,706
|
13.96 %
|
|
$ 2,619
|
12.71 %
|
|
Tier 1 capital (to
risk weighted assets)
|
$ 2,741
|
12.96 %
|
|
$ 2,824
|
14.04 %
|
|
$ 2,706
|
13.96 %
|
|
$ 2,619
|
12.71 %
|
|
Total capital (to risk
weighted assets)
|
$ 2,853
|
13.49 %
|
|
$ 2,931
|
14.57 %
|
|
$ 2,839
|
14.65 %
|
|
$ 2,766
|
13.42 %
|
|
Risk-weighted asset
base
|
$
21,144
|
|
|
$
20,113
|
|
|
$
19,383
|
|
|
$
20,609
|
|
|
Loans Serviced and
Subserviced
(Dollars in millions)
(Unaudited)
|
|
|
September 30,
2022
|
|
June 30,
2022
|
|
December 31,
2021
|
|
September 30,
2021
|
|
Unpaid
Principal
Balance (1)
|
Number of
accounts
|
|
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)
|
$
284,120
|
1,090,130
|
|
$
293,808
|
1,160,087
|
|
$
246,858
|
1,032,923
|
|
$
230,045
|
1,007,557
|
|
Serviced for others
(3)
|
67,918
|
267,416
|
|
41,557
|
160,387
|
|
35,074
|
137,243
|
|
31,354
|
124,665
|
|
Serviced for own loan
portfolio (4)
|
7,801
|
63,461
|
|
7,959
|
62,217
|
|
8,793
|
63,426
|
|
10,410
|
70,738
|
|
Total loans serviced
and subserviced
|
$
359,839
|
1,421,007
|
|
$
343,324
|
1,382,691
|
|
$
290,725
|
1,233,592
|
|
$
271,809
|
1,202,960
|
|
(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)
|
|
|
September 30,
2022
|
|
June 30,
2022
|
|
December 31,
2021
|
|
September 30,
2021
|
|
Consumer
loans
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential first
mortgage
|
$ 3,147
|
19.9 %
|
|
$ 2,205
|
15.0 %
|
|
$ 1,536
|
11.5 %
|
|
$ 1,626
|
11.5 %
|
|
Home equity
|
769
|
4.9 %
|
|
645
|
4.4 %
|
|
613
|
4.6 %
|
|
657
|
4.6 %
|
|
Other
|
1,411
|
8.9 %
|
|
1,331
|
9.1 %
|
|
1,236
|
9.2 %
|
|
1,203
|
8.3 %
|
|
Total consumer
loans
|
5,327
|
33.7 %
|
|
4,181
|
28.5 %
|
|
3,385
|
25.3 %
|
|
3,486
|
24.4 %
|
|
Commercial
loans
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
3,721
|
23.6 %
|
|
3,387
|
23.1 %
|
|
3,223
|
24.0 %
|
|
3,216
|
22.6 %
|
|
Commercial and
industrial
|
3,188
|
20.2 %
|
|
2,653
|
18.1 %
|
|
1,826
|
13.6 %
|
|
1,387
|
9.7 %
|
|
Warehouse
lending
|
3,557
|
22.5 %
|
|
4,434
|
30.3 %
|
|
4,974
|
37.1 %
|
|
6,179
|
43.3 %
|
|
Total commercial
loans
|
10,466
|
66.3 %
|
|
10,474
|
71.5 %
|
|
10,023
|
74.7 %
|
|
10,782
|
75.6 %
|
|
Total loans
held-for-investment
|
$
15,793
|
100.0 %
|
|
$
14,655
|
100.0 %
|
|
$
13,408
|
100.0 %
|
|
$
14,268
|
100.0 %
|
|
Other Consumer Loans
Held-for-Investment
(Dollars in millions)
(Unaudited)
|
|
|
September 30,
2022
|
|
June 30,
2022
|
|
December 31,
2021
|
|
September 30,
2021
|
|
Indirect
lending
|
$ 1,071
|
75.9 %
|
|
$
972
|
73.0 %
|
|
$
926
|
74.8 %
|
|
$
916
|
76.2 %
|
|
Point of
sale
|
283
|
20.1 %
|
|
300
|
22.6 %
|
|
272
|
22.0 %
|
|
248
|
20.6 %
|
|
Other
|
57
|
4.0 %
|
|
59
|
4.4 %
|
|
38
|
3.2 %
|
|
39
|
3.2 %
|
|
Total other consumer
loans
|
$ 1,411
|
100.0 %
|
|
$ 1,331
|
100.0 %
|
|
$ 1,236
|
100.0 %
|
|
$ 1,203
|
100.0 %
|
|
Allowance for Credit
Losses
(Dollars in millions)
(Unaudited)
|
|
|
September 30,
2022
|
|
June 30,
2022
|
|
September 30,
2021
|
|
Residential first
mortgage
|
$
32
|
|
$
33
|
|
$
43
|
|
Home equity
|
23
|
|
21
|
|
15
|
|
Other
|
29
|
|
31
|
|
32
|
|
Total consumer
loans
|
84
|
|
85
|
|
90
|
|
Commercial real
estate
|
26
|
|
22
|
|
35
|
|
Commercial and
industrial
|
16
|
|
11
|
|
43
|
|
Warehouse
lending
|
1
|
|
4
|
|
3
|
|
Total commercial
loans
|
43
|
|
37
|
|
81
|
|
Allowance for loan
losses
|
127
|
|
122
|
|
171
|
|
Reserve for unfunded
commitments
|
13
|
|
13
|
|
19
|
|
Allowance for credit
losses
|
$
140
|
|
$
135
|
|
$
190
|
|
Allowance for Credit
Losses
(Dollars in millions)
(Unaudited)
|
|
|
Three Months Ended
September 30, 2022
|
|
Residential
First
Mortgage
|
Home
Equity
|
Other
Consumer
|
Commercial
Real Estate
|
Commercial
and
Industrial
|
Warehouse
Lending
|
Total LHFI
Portfolio (1)
|
Unfunded
Commitments
|
|
Beginning
balance
|
$
33
|
$
21
|
$
31
|
$
22
|
$
11
|
$
4
|
$
122
|
$
13
|
|
Provision (benefit)
for credit losses:
|
|
|
|
|
|
|
|
|
|
Loan volume
|
10
|
2
|
2
|
2
|
4
|
—
|
20
|
—
|
|
Economic forecast
(2)
|
—
|
—
|
—
|
1
|
(1)
|
—
|
—
|
—
|
|
Credit (3)
|
(10)
|
—
|
(3)
|
2
|
(1)
|
—
|
(12)
|
—
|
|
Qualitative factor
adjustments
|
—
|
—
|
—
|
(1)
|
1
|
(3)
|
(3)
|
—
|
|
Charge-offs
|
(1)
|
—
|
(2)
|
—
|
—
|
—
|
(3)
|
—
|
|
Recoveries
|
—
|
—
|
1
|
—
|
2
|
—
|
3
|
—
|
|
Ending allowance
balance
|
$
32
|
$
23
|
$
29
|
$
26
|
$
16
|
$
1
|
$
127
|
$
13
|
|
(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, changes in duration, as
well as individually evaluated reserves.
|
|
Allowance for Credit
Losses
(Dollars in millions)
(Unaudited)
|
|
|
Nine Months Ended
September 30, 2022
|
|
Residential
First
Mortgage
|
Home
Equity
|
Other
Consumer
|
Commercial
Real Estate
|
Commercial
and
Industrial
|
Warehouse
Lending
|
Total LHFI
Portfolio (1)
|
Unfunded
Commitments
|
|
Beginning
balance
|
$
40
|
$
14
|
$
36
|
$
28
|
$
32
|
$
4
|
$
154
|
$
16
|
|
Provision (benefit)
for credit losses:
|
|
|
|
|
|
|
|
|
|
Loan volume
|
14
|
3
|
5
|
3
|
11
|
—
|
36
|
(3)
|
|
Economic forecast
(2)
|
3
|
3
|
(4)
|
2
|
(4)
|
—
|
—
|
—
|
|
Credit (3)
|
(23)
|
2
|
(5)
|
(5)
|
(2)
|
—
|
(33)
|
—
|
|
Qualitative factor
adjustments
|
—
|
—
|
—
|
(2)
|
(3)
|
(3)
|
(8)
|
—
|
|
Charge-offs
|
(2)
|
—
|
(7)
|
—
|
(20)
|
—
|
(29)
|
—
|
|
Recoveries
|
—
|
1
|
4
|
—
|
2
|
—
|
7
|
—
|
|
Ending allowance
balance
|
$
32
|
$
23
|
$
29
|
$
26
|
$
16
|
$
1
|
$
127
|
$
13
|
|
(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, changes in duration, as
well as individually evaluated reserves.
|
|
Nonperforming Loans
and Assets
(Dollars in millions)
(Unaudited)
|
|
|
September
30,
2022
|
|
June 30,
2022
|
|
December 31,
2021
|
|
September
30,
2021
|
|
Nonperforming
LHFI
|
$
64
|
|
$
79
|
|
$
81
|
|
$
82
|
|
Nonperforming
TDRs
|
6
|
|
6
|
|
8
|
|
5
|
|
Nonperforming TDRs at
inception but performing for less than six months
|
24
|
|
14
|
|
5
|
|
9
|
|
Total nonperforming
LHFI and TDRs (1)
|
94
|
|
99
|
|
94
|
|
96
|
|
Other nonperforming
assets, net
|
6
|
|
5
|
|
6
|
|
6
|
|
LHFS
|
17
|
|
20
|
|
17
|
|
10
|
|
Total nonperforming
assets
|
$
117
|
|
$
124
|
|
$
117
|
|
$
112
|
|
|
|
|
|
|
|
|
|
Ratio of nonperforming
assets to total assets (2)
|
0.39 %
|
|
0.42 %
|
|
0.39 %
|
|
0.37 %
|
|
Ratio of nonperforming
LHFI and TDRs to LHFI
|
0.59 %
|
|
0.68 %
|
|
0.70 %
|
|
0.66 %
|
|
Ratio of nonperforming
assets to LHFI and repossessed assets (2)
|
0.63 %
|
|
0.71 %
|
|
0.74 %
|
|
0.70 %
|
|
(1)
|
Includes $44 million of
first residential mortgage loans that are current in accordance
with their forbearance exit plan and not yet returned to accrual
status as of September 30, 2022.
|
|
(2)
|
Ratio excludes
nonperforming 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
|
|
Total Past
Due
|
|
Total
LHFI
|
|
September 30,
2022
|
|
|
|
|
|
|
|
|
|
|
Consumer
loans
|
$
16
|
|
$
7
|
|
$
94
|
|
$
117
|
|
$
5,327
|
|
Commercial
loans
|
2
|
|
9
|
|
2
|
|
13
|
|
10,466
|
|
Total loans
|
$
18
|
|
$
16
|
|
$
96
|
|
$
130
|
|
$
15,793
|
|
June 30,
2022
|
|
|
|
|
|
|
|
|
|
|
Consumer loans
(1)
|
$
15
|
|
$
7
|
|
$
99
|
|
$
121
|
|
$
4,181
|
|
Commercial
loans
|
—
|
|
—
|
|
—
|
|
—
|
|
10,474
|
|
Total loans
|
$
15
|
|
$
7
|
|
$
99
|
|
$
121
|
|
$
14,655
|
|
December 31,
2021
|
|
|
|
|
|
|
|
|
|
|
Consumer
loans
|
$
26
|
|
$
36
|
|
$
62
|
|
$
124
|
|
$
3,385
|
|
Commercial
loans
|
—
|
|
—
|
|
32
|
|
32
|
|
10,023
|
|
Total loans
|
$
26
|
|
$
36
|
|
$
94
|
|
$
156
|
|
$
13,408
|
|
September 30,
2021
|
|
|
|
|
|
|
|
|
|
|
Consumer
loans
|
$
12
|
|
$
2
|
|
$
58
|
|
$
72
|
|
$
3,486
|
|
Commercial
loans
|
—
|
|
—
|
|
35
|
|
35
|
|
10,782
|
|
Total loans
|
$
12
|
|
$
2
|
|
$
93
|
|
$
107
|
|
$
14,268
|
|
(1)
|
Includes $44 million of
first residential mortgage loans that are current in accordance
with their forbearance exit plan and not yet returned to accrual
status as of September 30, 2022.
|
|
Troubled Debt
Restructurings
(Dollars in millions)
(Unaudited)
|
|
|
TDRs
|
|
Performing
|
|
Nonperforming
|
|
Total
|
|
September 30,
2022
|
|
|
Consumer
loans
|
$
25
|
|
$
30
|
|
$
55
|
|
Commercial
loans
|
—
|
|
—
|
|
—
|
|
Total TDR
loans
|
$
25
|
|
$
30
|
|
$
55
|
|
June 30,
2022
|
|
|
|
|
|
|
Consumer
loans
|
$
22
|
|
$
20
|
|
$
42
|
|
Commercial
loans
|
—
|
|
—
|
|
—
|
|
Total TDR
loans
|
$
22
|
|
$
20
|
|
$
42
|
|
December 31,
2021
|
|
|
|
|
|
|
Consumer
loans
|
$
22
|
|
$
13
|
|
$
35
|
|
Commercial
loans
|
2
|
|
—
|
|
2
|
|
Total TDR
loans
|
$
24
|
|
$
13
|
|
$
37
|
|
September 30,
2021
|
|
|
|
|
|
|
Consumer
loans
|
$
34
|
|
$
12
|
|
$
46
|
|
Commercial
loans
|
—
|
|
2
|
|
2
|
|
Total TDR
loans
|
$
34
|
|
$
14
|
|
$
48
|
|
Non-GAAP Reconciliation
(Unaudited)
|
|
|
In addition to
analyzing the Company's results on a reported basis, management
reviews the Company's 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 settlement expense 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, adjusted
noninterest expense, adjusted income before income taxes, adjusted
provision for income taxes, adjusted net income, adjusted
basic earnings per share, adjusted diluted earnings per share and
adjusted efficiency ratio 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.
|
|
|
|
September
30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
December 31,
2021
|
|
September
30,
2021
|
|
(Dollars in millions,
except share data)
|
|
Total stockholders'
equity
|
$
2,616
|
|
$
2,693
|
|
$
2,733
|
|
$
2,718
|
|
$
2,645
|
|
Less: Goodwill and
intangible assets
|
140
|
|
142
|
|
145
|
|
147
|
|
149
|
|
Tangible book
value
|
$
2,476
|
|
$
2,551
|
|
$
2,588
|
|
$
2,571
|
|
$
2,496
|
|
|
|
|
|
|
|
|
|
|
|
Number of common shares
outstanding
|
53,330,827
|
|
53,329,993
|
|
53,236,067
|
|
53,197,650
|
|
52,862,383
|
|
Tangible book value
per share
|
$
46.42
|
|
$
47.83
|
|
$
48.61
|
|
$
48.33
|
|
$
47.21
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
25,443
|
|
$
24,899
|
|
$
23,244
|
|
$
25,483
|
|
$
27,042
|
|
Tangible common
equity to assets ratio
|
9.7 %
|
|
10.2 %
|
|
11.1 %
|
|
10.1 %
|
|
9.2 %
|
|
Return on average
tangible common equity, adjusted return on average tangible common
equity and adjusted return on average assets.
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
2022
|
|
June 30,
2022
|
|
September
30,
2021
|
|
September
30,
2022
|
|
September
30,
2021
|
|
(Dollars in
millions)
|
|
|
|
|
|
Net income
|
$
73
|
|
$
60
|
|
$
152
|
|
$
186
|
|
$
448
|
|
Add: Intangible asset
amortization, net of tax
|
2
|
|
3
|
|
2
|
|
5
|
|
6
|
|
Tangible net
income
|
$
75
|
|
$
63
|
|
$
154
|
|
$
191
|
|
$
454
|
|
|
|
|
|
|
|
|
|
|
|
Total average
equity
|
$
2,785
|
|
$
2,754
|
|
$
2,592
|
|
$
2,742
|
|
$
2,454
|
|
Less: Average goodwill
and intangible assets
|
141
|
|
144
|
|
151
|
|
144
|
|
—
|
|
Total tangible average
equity
|
$
2,644
|
|
$
2,610
|
|
$
2,441
|
|
$
2,598
|
|
$
2,454
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity
|
11.2 %
|
|
9.5 %
|
|
25.2 %
|
|
9.8 %
|
|
24.7 %
|
|
Adjustment to remove
DOJ settlement expense
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
2.3 %
|
|
Adjustment for former
CEO SERP agreement
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
(0.7) %
|
|
Adjustment for merger
costs
|
0.7 %
|
|
0.6 %
|
|
1.0 %
|
|
0.6 %
|
|
0.9 %
|
|
Adjusted return on
average tangible common equity
|
11.9 %
|
|
10.1 %
|
|
26.2 %
|
|
10.4 %
|
|
27.2 %
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
1.2 %
|
|
1.0 %
|
|
2.2 %
|
|
1.0 %
|
|
2.1 %
|
|
Adjustment to remove
DOJ settlement expense
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
0.1 %
|
|
Adjustment for former
CEO SERP settlement agreement
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
Adjustment for merger
costs
|
— %
|
|
— %
|
|
0.1 %
|
|
— %
|
|
— %
|
|
Adjusted return on
average assets
|
1.2 %
|
|
1.0 %
|
|
2.3 %
|
|
1.0 %
|
|
2.2 %
|
|
Adjusted HFI
loan-to-deposit ratio.
|
|
|
September
30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
December 31,
2021
|
|
September
30,
2021
|
|
(Dollars in
millions)
|
|
Average LHFI
|
$
14,640
|
|
$
13,339
|
|
$
12,384
|
|
$
13,314
|
|
$
13,540
|
|
Less: Average warehouse
loans
|
3,541
|
|
4,099
|
|
3,973
|
|
5,148
|
|
5,392
|
|
Adjusted average
LHFI
|
$
11,099
|
|
$
9,240
|
|
$
8,411
|
|
$
8,166
|
|
$
8,148
|
|
|
|
|
|
|
|
|
|
|
|
Average
deposits
|
$
17,216
|
|
$
17,488
|
|
$
18,089
|
|
$
19,816
|
|
$
19,686
|
|
Less: Average custodial
deposits
|
4,681
|
|
4,641
|
|
4,970
|
|
6,309
|
|
6,180
|
|
Adjusted average
deposits
|
$
12,535
|
|
$
12,847
|
|
$
13,119
|
|
$
13,507
|
|
$
13,506
|
|
|
|
|
|
|
|
|
|
|
|
HFI loan-to-deposit
ratio
|
85.0 %
|
|
76.3 %
|
|
68.5 %
|
|
67.2 %
|
|
68.8 %
|
|
Adjusted HFI
loan-to-deposit ratio
|
88.5 %
|
|
71.9 %
|
|
64.1 %
|
|
60.5 %
|
|
60.3 %
|
|
Adjusted noninterest
expense, income before income taxes, provision for income taxes,
net income, basic earnings per share, diluted earnings per share,
and efficiency ratio.
|
|
|
Three Months
Ended
|
|
September
30,
2022
|
|
June 30,
2022
|
|
March 31,
2022
|
|
December 31,
2021
|
|
September
30,
2021
|
|
(Dollar in
millions)
|
|
Noninterest
expense
|
$
236
|
|
$
256
|
|
$
261
|
|
$
291
|
|
$
286
|
|
Adjustment for merger
costs
|
3
|
|
3
|
|
3
|
|
6
|
|
5
|
|
Adjusted noninterest
expense
|
$
233
|
|
$
253
|
|
$
258
|
|
$
285
|
|
$
281
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
$
92
|
|
$
77
|
|
$
68
|
|
$
109
|
|
$
198
|
|
Adjustment for merger
costs
|
3
|
|
3
|
|
3
|
|
6
|
|
5
|
|
Adjusted income
before income taxes
|
$
95
|
|
$
80
|
|
$
71
|
|
$
115
|
|
$
203
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
$
19
|
|
$
17
|
|
$
15
|
|
$
24
|
|
$
46
|
|
Adjustment for merger
costs
|
(1)
|
|
—
|
|
(1)
|
|
(1)
|
|
(1)
|
|
Adjusted provision
for income taxes
|
$
20
|
|
$
17
|
|
$
16
|
|
$
25
|
|
$
47
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
73
|
|
$
60
|
|
$
53
|
|
$
85
|
|
$
152
|
|
Adjusted net
income
|
$
75
|
|
$
63
|
|
$
55
|
|
$
90
|
|
$
156
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding
|
53,330,518
|
|
53,269,631
|
|
53,219,866
|
|
52,867,138
|
|
52,862,288
|
|
Weighted average
diluted common shares
|
53,610,266
|
|
53,535,448
|
|
53,578,001
|
|
53,577,832
|
|
53,659,422
|
|
Adjusted basic
earnings per share
|
$
1.42
|
|
$
1.18
|
|
$
1.03
|
|
$
1.71
|
|
$
2.94
|
|
Adjusted diluted
earnings per share
|
$
1.41
|
|
$
1.17
|
|
$
1.02
|
|
$
1.69
|
|
$
2.90
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
70.9 %
|
|
79.1 %
|
|
80.4 %
|
|
75.9 %
|
|
62.2 %
|
|
Adjustment for merger
costs
|
(1.1) %
|
|
(1.0) %
|
|
(0.8) %
|
|
(1.5) %
|
|
(1.1) %
|
|
Adjusted efficiency
ratio
|
69.8 %
|
|
78.1 %
|
|
79.6 %
|
|
74.4 %
|
|
61.1 %
|
|
|
Nine Months
Ended
|
|
|
September
30,
2022
|
|
September
30,
2021
|
|
Efficiency
ratio
|
|
76.7 %
|
|
65.5 %
|
|
Adjustment to remove
DOJ settlement expense
|
|
— %
|
|
(2.5) %
|
|
Adjustment for former
CEO SERP agreement
|
|
— %
|
|
0.7 %
|
|
Adjustment for merger
costs
|
|
(1.0) %
|
|
(1.0) %
|
|
Adjusted efficiency
ratio
|
|
75.7 %
|
|
62.7 %
|
For more information,
contact:
Bryan Marx
FBCInvestorRelations@flagstar.com
(248) 312-5699
View original
content:https://www.prnewswire.com/news-releases/flagstar-bancorp-reports-third-quarter-2022-net-income-of-73-million-or-1-35-per-diluted-share-301659350.html
SOURCE Flagstar Bancorp, Inc.
