Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - FLAGSTAR BANCORP INC | d321011dex991.htm |
| 8-K - FORM 8-K - FLAGSTAR BANCORP INC | d321011d8k.htm |
 1
Fourth Quarter 2011 Highlights
Net loss to common stockholders of $(78.2) million
•
$98.3 million in pre-tax, pre-credit-cost income
•
Credit related costs of $173.2, compared to $111.7 in prior quarter
•
Gain on loan sale income increased to $106.9 million, or 102 bps
•
Net loan fees and charges increased by 55.6% from prior quarter to $28.6 million
•
Net servicing revenue increased by 71.3% from prior quarter to $29.0 million
•
Bank net interest margin improved by 13 basis points from prior quarter to 2.43%
Maintained strong capital and liquidity levels
•
Tier 1 capital ratio of 8.95%
•
Cash
and
cash
equivalents
of
$731.1
million,
in
addition
to
$244
million
in
unencumbered
marketable securities and over $550 million in unused capacity at FHLB
Continued emphasis on credit risk management, primarily associated with loans originated
prior to 2009 •
Fortified balance sheet, adding $71.0 million in total reserves
•
Converted to nationally recognized residential mortgage loan servicing system and made
significant investments and enhancements in loss mitigation and default
servicing Completed previously announced divestitures of Indiana and Georgia bank
franchises, resulting in net gain of $21.4 million
Grew interest earning assets, improved retail deposit mix and reduced overall cost of
funds Exhibit 99.2 |
 2
Summary Financial Results
[1] Net servicing revenue includes net loan administration income and net gain (loss) on
trading securities. ($ in millions, except per share data)
Q4 2011
Q3 2011
Q4 2010
Net Interest Income
$75.9
$65.6
$66.1
Provision
$63.5
$36.7
$225.4
Gain on Loan Sale
$106.9
$103.9
$76.9
Net Servicing Revenue [1]
$29.0
$16.9
$28.1
Net Loss Applicable to Common Shareholders
($78.2)
($14.2)
($192.1)
Diluted Earnings / (Loss) per Share
($0.14)
($0.03)
($0.64)
Total Assets
$13,637.5
$13,734.0
$13,643.5
Total Stockholders' Equity
$1,079.7
$1,159.3
$1,259.7
Book Value per Common Share
$1.48
$1.63
$1.83
NPLs / Gross Loans HFI
6.94%
6.52%
5.05%
NPAs / Total Assets (Bank)
4.43%
4.09%
4.35%
ALLL / NPLs
65.11%
63.39%
86.05%
ALLL / Gross Loans HFI
4.52%
4.13%
4.35%
NPAs / Tier 1 Capital + Allowance for Loan Losses [2]
39.34%
35.88%
31.52%
Tier 1 Capital Ratio
8.95%
9.31%
9.61%
Total Risk Based Capital Ratio
16.64%
17.64%
18.55%
Total Equity / Total Assets
7.92%
8.44%
9.23%
[2]: See Non-GAAP reconciliation on pages 39 - 41. |
 3
Pre-tax, Pre-credit-cost Income
--
Pre-tax, pre-credit-cost income continues to be strong…
Totals may not foot due to rounding
$ in millions
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Loss before tax provision and dividends
($74.9)
($9.2)
($69.9)
($26.7)
($185.3)
Add back:
Provision for loan losses
63.5
36.7
48.4
28.3
225.4
Asset resolution
32.4
34.5
23.3
38.1
41.8
Other than temporary impairment on investments AFS
7.1
1.3
15.6
0.0
1.3
Representation and warranty reserve
69.3
39.0
21.4
20.4
10.3
Write down of residual interests
0.8
0.2
2.3
2.4
(3.8)
Total credit related costs:
173.2
111.7
110.9
89.2
275.0
Pre-tax, pre credit-cost income
$98.3
$102.5
$41.0
$62.5
$89.7
Note: See Non-GAAP reconciliation on pages 39 - 41. |
 4
Growth in Pre-tax, Pre-credit-cost Income
--
Pre-tax pre-credit-cost income increased to $304.3 million for 2011…
$53.2
$70.8
$346.1
$290.8
$304.3
$-
$50
$100
$150
$200
$250
$300
$350
$400
2007
2008
2009
2010
2011
Pre-tax, pre-credit-cost income
Note: See Non-GAAP reconciliation on pages 39 - 41. |
 5
Regulatory Capital Ratios
--
Regulatory capital ratios remains strong…
7.19%
6.39%
6.19%
9.39%
9.24%
9.12%
9.61%
9.87%
10.07%
9.31%
8.95%
13.67%
12.06%
11.68%
17.98%
17.20%
16.87%
18.55%
20.51%
19.73%
17.64%
16.64%
0.00%
5.00%
10.00%
15.00%
20.00%
Jun-09
Sep-09
Dec-09
Mar-10
Jun-10
Sep-10
Dec-10
Mar-11
Jun-11
Sep-11
Dec-11
Tier 1 (Core) Capital Ratio
Total Risk Based Capital Ratio |
 6
Full Income Statement
Totals may not foot due to rounding
($ in millions, except per share data)
Q4 2011
Q3 2011
Q4 2010
Net Interest Income
$75.9
$65.6
$66.1
Provision for Loan Losses
63.5
36.7
225.4
Net Interest Income after Provision
12.3
28.9
(159.2)
Non-interest Income
118.6
112.6
136.5
Non-interest Expense
205.8
150.7
162.5
Net Earnings (before tax provision)
(74.9)
(9.2)
(185.3)
Provision for Income Taxes
0.3
0.3
2.1
Net Earnings (before preferred dividends)
(75.1)
(9.5)
(187.4)
Preferred Dividends
(3.0)
(4.7)
(4.7)
Net Earnings
($78.2)
($14.2)
($192.1)
Weighted average common shares outstanding
$555.6
$554.8
$361.0
Diluted Loss per Share
($0.14)
($0.03)
($0.64) |
 7
Select Balance Sheet Items
Totals may not foot due to rounding
($ in millions)
Q4 2011
Q3 2011
Q4 2010
Total assets
$13,637.5
$13,734.0
$13,643.5
Cash and interest earning deposits
$731.1
$902.8
$953.5
First mortgage and construction loans
3,749.8
3,828.1
3,792.7
Second
mortgage loans 138.9
146.5
174.8
Commercial real estate loans
1,243.0
1,268.9
1,250.3
Warehouse
loans 1,173.9
995.7
720.8
Consumer lending (including HELOC and other)
289.6
305.9
358.0
Commercial and Industrial
330.1
234.1
8.9
Commercial lease financing
113.3
42.5
-
Investment loan portfolio
$7,038.6
$6,821.7
$6,305.5
Loans held for sale
$1,800.9
$2,080.9
$2,585.2
Loans repurchased with government guarantees
1,899.3
1,746.0
1,674.8
Securities classified as trading
313.4
312.8
160.8
Securities classified as available for sale
481.4
521.3
475.2
Mortgage servicing rights
510.5
437.3
580.3 |
 8
Non-GAAP Reconciliation
Totals may not foot due to rounding
$ in millions
Three Months Ended
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Loss before tax provision and dividends
($74.9)
($9.2)
($69.9)
($26.7)
($185.3)
Add back:
Provision for loan losses
63.5
36.7
48.4
28.3
225.4
Asset resolution
32.4
34.5
23.3
38.1
41.8
Other than temporary impairment on investments AFS
7.1
1.3
15.6
0.0
1.3
Representation and warranty reserve
69.3
39.0
21.4
20.4
10.3
Write down of residual interests
0.8
0.2
2.3
2.4
(3.8)
Total credit related costs:
173.2
111.7
110.9
89.2
275.0
Pre-tax, pre credit-cost income
$98.3
$102.5
$41.0
$62.5
$89.7
$ in millions
For the Years Ended
2007
2008
2009
2010
2011
Loss before tax provision and dividends
($58.8)
($423.4)
($441.7)
($372.7)
($180.7)
Add back:
Provision for loan losses
88.3
344.0
504.4
426.4
176.9
Asset resolution
10.5
46.2
104.1
161.3
128.3
Other than temporary impairment on investments AFS
2.8
62.4
20.7
5.0
24.0
Representation and warranty reserve
3.7
17.0
75.6
61.5
150.1
Write down of residual interests
6.8
24.6
82.9
9.3
5.7
Total credit related costs:
112.1
494.2
787.7
663.5
485.0
Pre-tax, pre credit-cost income
$53.2
$70.8
$346.1
$290.8
$304.3
Non-GAAP Reconciliation
(Dollars in millions) |
 9
Non-GAAP Reconciliation
Totals may not foot due to rounding
$ in millions
12/31/2011
9/30/2011
12/31/2010
Non performing assets
603.1
$
558.3
$
498.0
$
Tier One Capital
1,215.2
$
1,273.9
$
1,306.1
$
Allowance for Loan Losses
318.0
$
282.0
$
274.0
$
Tier One Capital + Allowance for Loan Losses
1,533.2
$
1,555.9
$
1,580.1
$
Nonperforming assets / Tier One Capital + Allowance for
Loan Losses
39.34%
35.88%
31.52%
Non-GAAP Reconciliation
(Dollars in millions) |