Flagstar Bancorp Inc. (FBC, Financial) filed Quarterly Report for the period ended 2012-06-30.
Flagstar Bancorp, Inc. has a market cap of $486.5 million; its shares were traded at around $0.9297 with and P/S ratio of 0.6.
Six months. For the six months ended June 30, 2012, we had average interest-earning assets of $12.8 billion, compared to $11.4 billion for the six months ended June 30, 2011. The increase in average interest-earning assets reflects a $1.1 billion increase in average loans available-for-sale and a $0.8 billion increase in average loans held-for-investment. Average-interest bearing liabilities totaled $11.0 billion for the six months ended June 30, 2012, compared to $10.4 billion for the six months ended June 30, 2011. The increase reflects a $0.6 billion increase in average FHLB advances for the six months ended June 30, 2012, compared to the six months ended June 30, 2011.
Our calculation of net gain on loan sales reflects adoption of fair value accounting for the majority of mortgage loans held-for-sale beginning January 1, 2009. The change of method was made on a prospective basis; therefore, only mortgage loans held-for-sale that were originated after 2009 have been affected. In addition, we also had changes in amounts related to derivatives, lower of cost or market adjustments on loans transferred to held-for-investment and provisions to representation and warranty reserve. Changes in amounts related to loan commitments and forward sales commitments amounted to a gain of $17.0 million and $58.1 million for the three and six months ended June 30, 2012, respectively, compared to a loss of $6.5 million and $47.5 million during the three and six months ended June 30, 2011, respectively. Provisions to our representation and warranty reserve representing our initial estimate of losses on probable mortgage repurchases amounted to $5.6 million and $10.7 million for the three and six months ended June 30, 2012, respectively, compared to $1.4 million and $3.7 million during the three and six months ended June 30, 2011, respectively.
Loans held-for-investment. Our largest category of earning assets consists of loans held-for-investment. Loans held-for-investment consist of residential first mortgage loans that are not held for resale (usually shorter duration and adjustable rate loans and second mortgages), warehouse loans to other mortgage lenders, HELOC, other consumer loans, commercial real estate loans, commercial and industrial loans, and commercial lease financing loans. Loans held-for-investment decreased from $7.0 billion at December 31, 2011, to $6.6 billion at June 30, 2012, primarily due to residential first mortgage loans declining 17.3 percent to $3.1 billion at June 30, 2012, compared to December 31, 2011. Commercial and industrial loans increased $240.4 million to $569.3 million at June 30, 2012 from $328.9 million at December 31, 2011. Commercial lease financing increased to $159.1 million at June 30, 2012, compared to $114.5 million at December 31, 2011. For information relating to the concentration of credit of our loans held for investment, see Note 7 of the Notes to the Consolidated Financial Statements, in Item 1. Financial Statement and Supplementary Data, herein.
Mortgage servicing rights. At June 30, 2012, MSRs included residential MSRs at fair value amounting to $638.9 million, compared to $510.5 million at December 31, 2011. During the six months ended June 30, 2012 and 2011, we recorded additions to our residential MSRs of $238.2 million and $88.9 million, respectively, due to loan sales or securitizations. Also, during the six months ended June 30, 2012, we reduced the amount of MSRs by $17.4 million related to bulk servicing sales, $56.0 million related to loans that paid off during the period and a decrease in the fair value of MSRs of $36.4 million resulting from the realization of expected cash flows and market driven changes, primarily as a result of decreases in mortgage loan rates that led to an expected increase in prepayment speeds. Consumer MSRs were eliminated during 2010 upon the transfer to a backup servicer pursuant to the applicable servicing agreements. See Note 10 of the Notes to the Consolidated Financial Statements, in Item 1. Financial Statements herein.
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Flagstar Bancorp, Inc. has a market cap of $486.5 million; its shares were traded at around $0.9297 with and P/S ratio of 0.6.
Highlight of Business Operations:
Three months. For the three months ended June 30, 2012, we had average interest-earning assets of $12.9 billion, compared to $11.3 billion for the three months ended June 30, 2011. The increase in average interest-earning assets reflects a $1.5 billion increase in average loans held-for-sale and a $0.7 billion increase in average loans held-for-investment. Average-interest bearing liabilities totaled $11.1 billion for the three months ended June 30, 2012, compared to $10.3 billion for the three months ended June 30, 2011. The increase of $0.8 billion reflects a $0.6 billion increase in average FHLB advances for the three months ended June 30, 2012, compared to the three months ended June 30, 2011.Six months. For the six months ended June 30, 2012, we had average interest-earning assets of $12.8 billion, compared to $11.4 billion for the six months ended June 30, 2011. The increase in average interest-earning assets reflects a $1.1 billion increase in average loans available-for-sale and a $0.8 billion increase in average loans held-for-investment. Average-interest bearing liabilities totaled $11.0 billion for the six months ended June 30, 2012, compared to $10.4 billion for the six months ended June 30, 2011. The increase reflects a $0.6 billion increase in average FHLB advances for the six months ended June 30, 2012, compared to the six months ended June 30, 2011.
Our calculation of net gain on loan sales reflects adoption of fair value accounting for the majority of mortgage loans held-for-sale beginning January 1, 2009. The change of method was made on a prospective basis; therefore, only mortgage loans held-for-sale that were originated after 2009 have been affected. In addition, we also had changes in amounts related to derivatives, lower of cost or market adjustments on loans transferred to held-for-investment and provisions to representation and warranty reserve. Changes in amounts related to loan commitments and forward sales commitments amounted to a gain of $17.0 million and $58.1 million for the three and six months ended June 30, 2012, respectively, compared to a loss of $6.5 million and $47.5 million during the three and six months ended June 30, 2011, respectively. Provisions to our representation and warranty reserve representing our initial estimate of losses on probable mortgage repurchases amounted to $5.6 million and $10.7 million for the three and six months ended June 30, 2012, respectively, compared to $1.4 million and $3.7 million during the three and six months ended June 30, 2011, respectively.
Loans held-for-investment. Our largest category of earning assets consists of loans held-for-investment. Loans held-for-investment consist of residential first mortgage loans that are not held for resale (usually shorter duration and adjustable rate loans and second mortgages), warehouse loans to other mortgage lenders, HELOC, other consumer loans, commercial real estate loans, commercial and industrial loans, and commercial lease financing loans. Loans held-for-investment decreased from $7.0 billion at December 31, 2011, to $6.6 billion at June 30, 2012, primarily due to residential first mortgage loans declining 17.3 percent to $3.1 billion at June 30, 2012, compared to December 31, 2011. Commercial and industrial loans increased $240.4 million to $569.3 million at June 30, 2012 from $328.9 million at December 31, 2011. Commercial lease financing increased to $159.1 million at June 30, 2012, compared to $114.5 million at December 31, 2011. For information relating to the concentration of credit of our loans held for investment, see Note 7 of the Notes to the Consolidated Financial Statements, in Item 1. Financial Statement and Supplementary Data, herein.
Mortgage servicing rights. At June 30, 2012, MSRs included residential MSRs at fair value amounting to $638.9 million, compared to $510.5 million at December 31, 2011. During the six months ended June 30, 2012 and 2011, we recorded additions to our residential MSRs of $238.2 million and $88.9 million, respectively, due to loan sales or securitizations. Also, during the six months ended June 30, 2012, we reduced the amount of MSRs by $17.4 million related to bulk servicing sales, $56.0 million related to loans that paid off during the period and a decrease in the fair value of MSRs of $36.4 million resulting from the realization of expected cash flows and market driven changes, primarily as a result of decreases in mortgage loan rates that led to an expected increase in prepayment speeds. Consumer MSRs were eliminated during 2010 upon the transfer to a backup servicer pursuant to the applicable servicing agreements. See Note 10 of the Notes to the Consolidated Financial Statements, in Item 1. Financial Statements herein.
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