Michigan | 1-16577 | 38-3150651 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
5151 Corporate Drive, Troy, Michigan 48098 | ||||
(Address of principal executive offices) (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
Exhibits | ||
99.1 | Press release of Flagstar Bancorp, Inc. dated July 28, 2015 | |
99.2 | Flagstar Bancorp, Inc. Conference Call Presentation Slides - Earnings Presentation Second Quarter 2015 |
FLAGSTAR BANCORP, INC. | ||||||
Dated: July 28, 2015 | By: | /s/ James K. Ciroli | ||||
James K. Ciroli | ||||||
Executive Vice President and Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press release of Flagstar Bancorp, Inc. dated July 28, 2015 | |
99.2 | Flagstar Bancorp, Inc. Conference Call Presentation Slides - Earnings Presentation Second Quarter 2015 |
• | Net income increased $14.9 million, or $0.25 per diluted share, from first quarter 2015 |
• | Positive operating leverage, led by 9 percent rise in revenue and 1 percent increase in expenses versus prior quarter |
• | Interest-earning assets increased 10 percent from first quarter 2015, driven by loan growth; warehouse lending rose 56 percent |
• | Interest-only loans decreased $386 million and NPLs declined 22 percent versus prior quarter, contributing to $10.3 million after-tax net allowance release |
• | Tier 1 leverage ratio remained strong at 11.5 percent |
Income Statement Highlights | |||||||||||||||||||
Three Months Ended | % Change | ||||||||||||||||||
June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | Seq | Yr/Yr | |||||||||||||
(Dollars in millions) | |||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||
Net interest income | $ | 72.5 | $ | 64.9 | $ | 61.3 | $ | 64.4 | $ | 62.5 | 11.7 | % | 16.0 | % | |||||
Provision for loan losses | (13.3 | ) | (3.5 | ) | 5.0 | 8.1 | 6.2 | N/M | N/M | ||||||||||
Noninterest income | 127.0 | 118.3 | 98.4 | 85.2 | 102.5 | 7.4 | % | 23.9 | % | ||||||||||
Noninterest expense | 138.9 | 137.0 | 139.2 | 179.4 | 121.4 | 1.4 | % | 14.4 | % | ||||||||||
Income (loss) before income taxes | 73.9 | 49.7 | 15.5 | (37.9 | ) | 37.4 | 48.7 | % | 97.6 | % | |||||||||
Provision (benefit) for income taxes | 27.5 | 18.2 | 4.4 | (10.3 | ) | 11.9 | 51.1 | % | N/M | ||||||||||
Net income (loss) | $ | 46.4 | $ | 31.5 | $ | 11.1 | $ | (27.6 | ) | $ | 25.5 | 47.3 | % | 82.0 | % | ||||
Earnings (Loss) Per Share (1) | $ | 0.68 | $ | 0.43 | $ | 0.07 | $ | (0.61 | ) | $ | 0.33 | 58.1 | % | N/M |
(1) | Fully diluted earnings (loss) per share, except where securities would be anti-dilutive. Includes deferred unpaid dividends. |
Key Ratios | ||||||||||||
Three Months Ended | Change (bps) | |||||||||||
June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | Seq | Yr/Yr | ||||||
Net interest margin | 2.79 | % | 2.75 | % | 2.80 | % | 2.91 | % | 2.98 | % | 4 | (19) |
Efficiency ratio (adjusted) (1) | 71.7 | % | 75.4 | % | 90.6 | % | 86.8 | % | 80.2 | % | (370) | (850) |
Return (loss) on average assets | 1.57 | % | 1.16 | % | 0.44 | % | (1.08 | )% | 1.04 | % | 41 | 53 |
Return (loss) on average equity | 12.71 | % | 8.85 | % | 3.18 | % | (7.88 | )% | 7.38 | % | 386 | 533 |
(1) | See non-GAAP reconciliation. |
Balance Sheet Highlights | |||||||||||||||||||
Three Months Ended | % Change | ||||||||||||||||||
June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | Seq | Yr/Yr | |||||||||||||
(Dollars in millions) | |||||||||||||||||||
Average Balance Sheet | |||||||||||||||||||
Average interest-earning assets | $ | 10,366 | $ | 9,422 | $ | 8,724 | $ | 8,815 | $ | 8,367 | 10 | % | 24 | % | |||||
Average loans held-for-investment | 4,938 | 4,294 | 4,031 | 4,088 | 3,903 | 15 | % | 27 | % | ||||||||||
Average interest-bearing deposits | 6,130 | 5,985 | 5,898 | 5,788 | 5,446 | 2 | % | 13 | % |
Adjustments to Noninterest Income | |||||||||||||||
Three Months Ended | |||||||||||||||
June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | |||||||||||
(Dollars in millions) | |||||||||||||||
Noninterest income | $ | 127.0 | $ | 118.3 | $ | 98.4 | $ | 85.2 | $ | 102.5 | |||||
Adjusting items | |||||||||||||||
Loan fees and charges (1) | — | — | — | — | (10.0 | ) | |||||||||
Representation and warranty provision (2) | — | — | — | 10.3 | — | ||||||||||
Adjusted noninterest income (3) | $ | 127.0 | $ | 118.3 | $ | 98.4 | $ | 95.5 | $ | 92.5 |
(1) | Reverse benefit for contract renegotiation. |
(2) | Add back reserve increase related to indemnifications claims on government insured loans. |
(3) | Non-GAAP number, see page 23 for reconciliation. |
Mortgage Metrics | |||||||||||||||||||
Three Months Ended | Change (% / bps) | ||||||||||||||||||
June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | Seq | Yr/Yr | |||||||||||||
(Dollars in millions) | |||||||||||||||||||
GOS margin (change in bps) (1) | 1.21 | % | 1.27 | % | 0.87 | % | 0.83 | % | 0.82 | % | (6) | 39 | |||||||
Gain on loans sales | $ | 82.2 | $ | 91.3 | $ | 53.5 | $ | 52.2 | $ | 54.8 | (10.0 | )% | 50.0 | % | |||||
Mortgage rate lock commitments (fallout-adjusted) (2) | $ | 6,804 | $ | 7,185 | $ | 6,156 | $ | 6,304 | $ | 6,693 | (5.3 | )% | 1.7 | % | |||||
Residential loans serviced (number of accounts - 000's) (3) | 378 | 385 | 383 | 388 | 367 | (1.8 | )% | 3.0 | % | ||||||||||
Capitalized value of mortgage servicing rights | 1.15 | % | 1.03 | % | 1.01 | % | 1.08 | % | 1.14 | % | 12 | 1 |
(1) | Gain on sale margin is based on net gain on loan sales to fallout-adjusted mortgage rate lock commitments. |
(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 serviced for own loan portfolio, serviced for others and subserviced for others loans. |
Adjustments to Noninterest expense | |||||||||||||||
Three Months Ended | |||||||||||||||
June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | |||||||||||
(Dollars in millions) | |||||||||||||||
Noninterest expense | $ | 138.9 | $ | 137.0 | $ | 139.2 | $ | 179.4 | $ | 121.4 | |||||
Adjusting items | |||||||||||||||
Legal and professional expense (1) | — | — | — | (1.1 | ) | (2.9 | ) | ||||||||
Other noninterest expense (2) | — | — | — | (37.5 | ) | 10.0 | |||||||||
Adjusted noninterest expense (3) | $ | 138.9 | $ | 137.0 | $ | 139.2 | $ | 140.8 | $ | 128.5 |
(1) | Adjust for legal expenses related to CFPB litigation settlements during the respective periods. |
(2) | Adjust for CFPB litigation settlement expense and an additional accrual for the DOJ litigation, respectively. |
(3) | Non-GAAP number, see page 23 for reconciliation. |
Credit Quality Ratios | |||||||||||||||||||
Three Months Ended | Change (% / bps) | ||||||||||||||||||
June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | Seq | Yr/Yr | |||||||||||||
(Dollars in millions) | |||||||||||||||||||
Allowance for loan loss to LHFI | 4.31 | % | 5.69 | % | 7.01 | % | 7.60 | % | 7.41 | % | (138) | (310) | |||||||
Charge-offs, net of recoveries | $ | 17.7 | $ | 40.5 | $ | 9.0 | $ | 13.1 | $ | 7.2 | (56.3 | )% | 145.8 | % | |||||
Charge-offs, net of recoveries, adjusted (1) | $ | 3.1 | $ | 4.5 | $ | 6.0 | $ | 6.8 | $ | 7.2 | (31.1 | )% | (56.9 | )% | |||||
Total nonperforming loans held-for-investment | $ | 65 | $ | 84 | $ | 120 | $ | 107 | $ | 120 | (22.6 | )% | (45.8 | )% | |||||
Net charge-off ratio (annualized) | 1.49 | % | 3.97 | % | 0.91 | % | 1.36 | % | 0.78 | % | (248) | 71 | |||||||
Net charge-off ratio, adjusted (annualized) (1) | 0.26 | % | 0.45 | % | 0.60 | % | 0.70 | % | 0.78 | % | (19) | (52) | |||||||
Nonperforming loans to LHFI | 1.22 | % | 1.81 | % | 2.71 | % | 2.56 | % | 2.76 | % | (59) | (154) |
(1) | Excludes charge-offs of $14.6 million, $36.0 million, $3.0 million and $6.3 million related to the sale of nonperforming loans and TDRs during the three months ended June 30, 2015, March 31, 2015, December 31, 2014, and September 30, 2014, respectively. |
Capital Ratios (Bancorp) (1) | Three Months Ended | Change (% / bps) | |||||||||||||||||
June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | Seq | Yr/Yr | |||||||||||||
Total capital | 21.30 | % | 22.61 | % | 24.12 | % | 24.35 | % | 25.19 | % | (131 | ) | (389 | ) | |||||
Tier 1 capital | 19.97 | % | 21.26 | % | 22.81 | % | 23.03 | % | 23.87 | % | (129 | ) | (390 | ) | |||||
Tier 1 leverage | 11.47 | % | 12.02 | % | 12.59 | % | 12.50 | % | 12.59 | % | (55 | ) | (112 | ) | |||||
Mortgage servicing rights to Tier 1 capital | 24.2 | % | 22.2 | % | 21.8 | % | 24.9 | % | 24.2 | % | 200 | — | |||||||
Book value per common share (change in percent) | $ | 20.98 | $ | 20.43 | $ | 19.64 | $ | 19.28 | $ | 19.90 | 2.7 | % | 5.4 | % |
(1) | On January 1, 2015, the Basel III rules became effective, subject to transition provisions primarily related to regulatory deductions and adjustments impacting common equity Tier 1 capital and Tier 1 capital. We reported under Basel I (which included the Market Risk Final Rules) at December 31, 2014 and prior. |
June 30, 2015 | March 31, 2015 | December 31, 2014 | June 30, 2014 | ||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | |||||||||||||||
Cash | $ | 53 | $ | 43 | $ | 47 | $ | 68 | |||||||
Interest-earning deposits | 193 | 199 | 89 | 135 | |||||||||||
Total cash and cash equivalents | 246 | 241 | 136 | 203 | |||||||||||
Investment securities | 2,272 | 2,295 | 1,672 | 1,606 | |||||||||||
Loans held-for-sale | 2,038 | 2,097 | 1,244 | 1,343 | |||||||||||
Loans with government guarantees | 592 | 704 | 1,128 | 1,218 | |||||||||||
Loans held-for-investment, net | |||||||||||||||
Loans held-for-investment | 5,335 | 4,631 | 4,448 | 4,359 | |||||||||||
Less: allowance for loan losses | (222 | ) | (253 | ) | (297 | ) | (306 | ) | |||||||
Total loans held-for-investment, net | 5,113 | 4,378 | 4,151 | 4,053 | |||||||||||
Mortgage servicing rights | 317 | 279 | 258 | 289 | |||||||||||
Federal Home Loan Bank stock | 113 | 156 | 155 | 210 | |||||||||||
Premises and equipment, net | 240 | 241 | 238 | 235 | |||||||||||
Net deferred tax asset | 400 | 416 | 442 | 435 | |||||||||||
Other assets | 809 | 764 | 416 | 342 | |||||||||||
Total assets | $ | 12,139 | $ | 11,571 | $ | 9,840 | $ | 9,933 | |||||||
Liabilities and Stockholders' Equity | |||||||||||||||
Deposits | |||||||||||||||
Noninterest bearing | $ | 1,417 | $ | 1,468 | $ | 1,209 | $ | 1,081 | |||||||
Interest bearing | 6,231 | 6,081 | 5,859 | 5,563 | |||||||||||
Total deposits | 7,648 | 7,549 | 7,069 | 6,644 | |||||||||||
Federal Home Loan Bank advances | 2,198 | 1,625 | 514 | 1,032 | |||||||||||
Long-term debt | 283 | 317 | 331 | 345 | |||||||||||
Representation and warranty reserve | 48 | 53 | 53 | 50 | |||||||||||
Other liabilities | 511 | 607 | 500 | 477 | |||||||||||
Total liabilities | 10,689 | 10,152 | 8,467 | 8,547 | |||||||||||
Stockholders' Equity | |||||||||||||||
Preferred stock | 267 | 267 | 267 | 267 | |||||||||||
Common stock | 1 | 1 | 1 | 1 | |||||||||||
Additional paid in capital | 1,483 | 1,483 | 1,482 | 1,480 | |||||||||||
Accumulated other comprehensive income | 8 | 23 | 8 | 7 | |||||||||||
Accumulated deficit | (307 | ) | (354 | ) | (385 | ) | (369 | ) | |||||||
Total stockholders' equity | 1,451 | 1,420 | 1,373 | 1,386 | |||||||||||
Total liabilities and stockholders' equity | $ | 12,139 | $ | 11,571 | $ | 9,840 | $ | 9,933 |
Flagstar Bancorp, Inc. Condensed Consolidated Statements of Operations (Dollars in millions, except per share data) (Unaudited) | ||||||||||||||||||||||||||
Second Quarter 2015 Compared to: | ||||||||||||||||||||||||||
Three Months Ended | First Quarter 2015 | Second Quarter 2014 | ||||||||||||||||||||||||
June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | Amount | Percent | Amount | Percent | ||||||||||||||||||
Total interest income | $ | 89.0 | $ | 79.3 | $ | 72.2 | $ | 75.1 | $ | 71.9 | $ | 9.7 | 12.2 | % | $ | 17.1 | 23.8 | % | ||||||||
Total interest expense | 16.5 | 14.4 | 10.9 | 10.7 | 9.4 | 2.1 | 14.6 | % | 7.1 | 75.5 | % | |||||||||||||||
Net interest income | 72.5 | 64.9 | 61.3 | 64.4 | 62.5 | 7.6 | 11.7 | % | 10.0 | 16.0 | % | |||||||||||||||
(Benefit) provision for loan losses | (13.3 | ) | (3.5 | ) | 5.0 | 8.1 | 6.2 | (9.8 | ) | N/M | (19.5 | ) | N/M | |||||||||||||
Net interest income after provision for loan losses | 85.8 | 68.4 | 56.3 | 56.3 | 56.3 | 17.4 | 25.4 | % | 29.5 | 52.4 | % | |||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||
Net gain on loan sales | 82.2 | 91.3 | 53.5 | 52.2 | 54.8 | (9.1 | ) | (10.0 | )% | 27.4 | 50.0 | % | ||||||||||||||
Loan fees and charges | 18.5 | 17.0 | 16.7 | 18.7 | 25.3 | 1.5 | 8.8 | % | (6.8 | ) | (26.9 | )% | ||||||||||||||
Deposit fees and charges | 6.2 | 6.1 | 5.9 | 5.7 | 5.3 | 0.1 | 1.6 | % | 0.9 | 17.0 | % | |||||||||||||||
Loan administration income | 6.8 | 4.3 | 5.5 | 5.6 | 6.2 | 2.5 | 58.1 | % | 0.6 | 9.7 | % | |||||||||||||||
Net return on the mortgage servicing asset | 9.3 | (2.4 | ) | 1.6 | 1.4 | 5.0 | 11.7 | N/M | 4.3 | 86.0 | % | |||||||||||||||
Net (loss) gain on sale of assets | (1.6 | ) | (0.4 | ) | 1.8 | 4.8 | 3.5 | (1.2 | ) | N/M | (5.1 | ) | N/M | |||||||||||||
Representation and warranty benefit (provision) | 5.9 | 1.5 | 6.1 | (12.5 | ) | (5.2 | ) | 4.4 | N/M | 11.1 | N/M | |||||||||||||||
Other noninterest (loss) income | (0.3 | ) | 0.9 | 7.3 | 9.3 | 7.6 | (1.2 | ) | N/M | (7.9 | ) | N/M | ||||||||||||||
Total noninterest income | 127.0 | 118.3 | 98.4 | 85.2 | 102.5 | 8.7 | 7.4 | % | 24.5 | 23.9 | % | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||
Compensation and benefits | 59.1 | 60.8 | 59.0 | 53.5 | 55.3 | (1.7 | ) | (2.8 | )% | 3.8 | 6.9 | % | ||||||||||||||
Commissions | 11.0 | 10.4 | 9.3 | 10.3 | 8.5 | 0.6 | 5.8 | % | 2.5 | 29.4 | % | |||||||||||||||
Occupancy and equipment | 19.8 | 19.9 | 20.1 | 20.5 | 19.4 | (0.1 | ) | (0.5 | )% | 0.4 | 2.1 | % | ||||||||||||||
Asset resolution | 4.7 | 7.8 | 13.4 | 13.7 | 17.9 | (3.1 | ) | (39.7 | )% | (13.2 | ) | (73.7 | )% | |||||||||||||
Federal insurance premiums | 6.3 | 5.5 | 5.3 | 5.6 | 6.8 | 0.8 | 14.5 | % | (0.5 | ) | (7.4 | )% | ||||||||||||||
Loan processing expense | 14.3 | 11.7 | 10.6 | 10.5 | 8.2 | 2.6 | 22.2 | % | 6.1 | 74.4 | % | |||||||||||||||
Legal and professional expense | 7.8 | 9.0 | 10.8 | 15.0 | 13.5 | (1.2 | ) | (13.3 | )% | (5.7 | ) | N/M | ||||||||||||||
Other noninterest expense | 15.9 | 11.9 | 10.7 | 50.3 | (8.2 | ) | 4.0 | 33.6 | % | 24.1 | N/M | |||||||||||||||
Total noninterest expense | 138.9 | 137.0 | 139.2 | 179.4 | 121.4 | 1.9 | 1.4 | % | 17.5 | 14.4 | % | |||||||||||||||
Income (loss) before income taxes | 73.9 | 49.7 | 15.5 | (37.9 | ) | 37.4 | 24.2 | 48.7 | % | 36.5 | 97.6 | % | ||||||||||||||
Provision (benefit) for income taxes | 27.5 | 18.2 | 4.4 | (10.3 | ) | 11.9 | 9.3 | 51.1 | % | 15.6 | N/M | |||||||||||||||
Net income (loss) applicable to common stockholders | $ | 46.4 | $ | 31.5 | $ | 11.1 | $ | (27.6 | ) | $ | 25.5 | $ | 14.9 | 47.3 | % | $ | 20.9 | 82.0 | % | |||||||
Income (loss) per share | ||||||||||||||||||||||||||
Basic | $ | 0.69 | $ | 0.43 | $ | 0.07 | $ | (0.61 | ) | $ | 0.33 | $ | 0.26 | 60.5 | % | $ | 0.36 | N/M | ||||||||
Diluted | $ | 0.68 | $ | 0.43 | $ | 0.07 | $ | (0.61 | ) | $ | 0.33 | $ | 0.25 | 58.1 | % | $ | 0.35 | N/M |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, 2015 | March 31, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | |||||||||||||||
Mortgage loans originated (1) | $ | 8,448.0 | $ | 7,254.2 | $ | 5,950.7 | $ | 15,702.1 | $ | 10,817.3 | |||||||||
Mortgage loans sold and securitized | $ | 7,571.4 | $ | 6,253.7 | $ | 6,029.8 | $ | 13,825.2 | $ | 10,504.1 | |||||||||
Interest rate spread (2) | 2.63 | % | 2.60 | % | 2.87 | % | 2.61 | % | 2.87 | % | |||||||||
Net interest margin | 2.79 | % | 2.75 | % | 2.98 | % | 2.77 | % | 2.97 | % | |||||||||
Average common shares outstanding | 56,436,026 | 56,385,454 | 56,230,458 | 56,410,880 | 56,212,422 | ||||||||||||||
Average fully diluted shares outstanding | 57,165,072 | 56,775,039 | 56,822,102 | 56,971,133 | 56,212,422 | ||||||||||||||
Average interest-earning assets | $ | 10,366.2 | $ | 9,421.6 | $ | 8,366.7 | $ | 9,896.5 | $ | 8,099.7 | |||||||||
Average interest paying liabilities | $ | 8,264.5 | $ | 7,504.6 | $ | 6,795.1 | $ | 7,887.1 | $ | 6,580.5 | |||||||||
Average stockholders' equity | $ | 1,461.6 | $ | 1,423.4 | $ | 1,381.9 | $ | 1,442.6 | $ | 1,413.2 | |||||||||
Return (loss) on average assets | 1.57 | % | 1.16 | % | 1.04 | % | 1.38 | % | (1.12 | )% | |||||||||
Return (loss) on average equity | 12.71 | % | 8.85 | % | 7.38 | % | 10.81 | % | (7.56 | )% | |||||||||
Efficiency ratio | 69.6 | % | 74.8 | % | 73.6 | % | 72.1 | % | 87.4 | % | |||||||||
Equity-to-assets ratio (average for the period) | 12.37 | % | 13.11 | % | 14.12 | % | 12.73 | % | 14.80 | % | |||||||||
Charge-offs to average LHFI (3) | 1.49 | % | 3.97 | % | 0.78 | % | 2.63 | % | 1.07 | % |
June 30, 2015 | March 31, 2015 | December 31, 2014 | June 30, 2014 | ||||||||||||
Book value per common share | $ | 20.98 | $ | 20.43 | $ | 19.64 | $ | 19.90 | |||||||
Number of common shares outstanding | 56,436,026 | 56,436,026 | 56,332,307 | 56,238,925 | |||||||||||
Mortgage loans subserviced for others | $ | 43,291.9 | $ | 44,708.1 | $ | 46,723.7 | $ | 43,103.4 | |||||||
Mortgage loans serviced for others | $ | 27,679.3 | $ | 27,046.4 | $ | 25,426.8 | $ | 25,342.3 | |||||||
Weighted average service fee (basis points) | 27.4 | 27.7 | 27.2 | 29.2 | |||||||||||
Capitalized value of mortgage servicing rights | 1.15 | % | 1.03 | % | 1.01 | % | 1.14 | % | |||||||
Mortgage servicing rights to Tier 1 capital | 24.2 | % | 22.2 | % | 21.8 | % | 24.2 | % | |||||||
Ratio of allowance for loan losses to LHFI (3) | 4.31 | % | 5.69 | % | 7.01 | % | 7.41 | % | |||||||
Ratio of nonperforming assets to total assets | 0.69 | % | 0.87 | % | 1.41 | % | 1.52 | % | |||||||
Equity-to-assets ratio | 11.95 | % | 12.27 | % | 13.95 | % | 13.95 | % | |||||||
Common equity-to-assets ratio | 9.76 | % | 9.96 | % | 11.24 | % | 11.27 | % | |||||||
Number of bank branches | 100 | 107 | 107 | 106 | |||||||||||
Number of FTE employees | 2,713 | 2,680 | 2,739 | 2,741 |
(1) | Includes residential first mortgage and second mortgage loans. |
(2) | Interest rate spread is the difference between the annualized yield earned on average interest-earning assets for the period and the annualized rate of interest paid on average interest-bearing liabilities for the period. |
(3) | Excludes loans carried under the fair value option. |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, 2015 | March 31, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | |||||||||||||||
Net income (loss) | $ | 46.4 | $ | 31.5 | $ | 25.5 | $ | 77.9 | $ | (52.9 | ) | ||||||||
Less: preferred stock accretion | — | — | — | — | (0.5 | ) | |||||||||||||
Net income (loss) from continuing operations | 46.4 | 31.5 | 25.5 | 77.9 | (53.4 | ) | |||||||||||||
Deferred cumulative preferred stock dividends | (7.4 | ) | (7.3 | ) | (6.8 | ) | (14.7 | ) | (12.5 | ) | |||||||||
Net income (loss) applicable to Common Stockholders | $ | 39.0 | $ | 24.2 | $ | 18.7 | $ | 63.2 | $ | (65.9 | ) | ||||||||
Weighted Average Shares | |||||||||||||||||||
Weighted average common shares outstanding | 56,436,026 | 56,385,454 | 56,230,458 | 56,410,880 | 56,212,422 | ||||||||||||||
Effect of dilutive securities | |||||||||||||||||||
Warrants | 299,391 | 232,474 | 314,693 | 266,118 | — | ||||||||||||||
Stock-based awards | 429,655 | 157,111 | 276,951 | 294,135 | — | ||||||||||||||
Weighted average diluted common shares | 57,165,072 | 56,775,039 | 56,822,102 | 56,971,133 | 56,212,422 | ||||||||||||||
Earnings (loss) per common share | |||||||||||||||||||
Net income (loss) applicable to Common Stockholders | $ | 0.69 | $ | 0.43 | $ | 0.33 | $ | 1.12 | $ | (1.17 | ) | ||||||||
Effect of dilutive securities | |||||||||||||||||||
Warrants | — | — | — | — | — | ||||||||||||||
Stock-based awards | (0.01 | ) | — | — | (0.01 | ) | — | ||||||||||||
Diluted earnings (loss) per share | $ | 0.68 | $ | 0.43 | $ | 0.33 | $ | 1.11 | $ | (1.17 | ) |
Three Months Ended | ||||||||||||||||||||||||||
June 30, 2015 | March 31, 2015 | June 30, 2014 | ||||||||||||||||||||||||
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 | $ | 2,217.7 | $ | 21.0 | 3.80 | % | $ | 1,841.6 | $ | 18.5 | 4.01 | % | $ | 1,516.8 | $ | 15.8 | 4.16 | % | ||||||||
Loans with government guarantees | 630.3 | 4.7 | 2.97 | % | 864.7 | 5.3 | 2.45 | % | 1,237.5 | 8.0 | 2.58 | % | ||||||||||||||
Loans held-for-investment | ||||||||||||||||||||||||||
Consumer loans (1) | 2,913.1 | 27.2 | 3.74 | % | 2,615.2 | 25.1 | 3.85 | % | 2,672.5 | 26.4 | 3.96 | % | ||||||||||||||
Commercial loans (1) | 2,024.5 | 20.6 | 4.03 | % | 1,678.4 | 16.6 | 3.95 | % | 1,230.4 | 11.7 | 3.77 | % | ||||||||||||||
Total loans held-for-investment | 4,937.6 | 47.8 | 3.86 | % | 4,293.6 | 41.7 | 3.89 | % | 3,902.9 | 38.1 | 3.90 | % | ||||||||||||||
Investment securities | 2,349.7 | 15.0 | 2.55 | % | 2,112.8 | 13.6 | 2.58 | % | 1,541.2 | 9.9 | 2.57 | % | ||||||||||||||
Interest-earning deposits | 230.9 | 0.5 | 0.55 | % | 308.9 | 0.2 | 0.44 | % | 168.3 | 0.1 | 0.28 | % | ||||||||||||||
Total interest-earning assets | 10,366.2 | $ | 89.0 | 3.42 | % | 9,421.6 | $ | 79.3 | 3.37 | % | 8,366.7 | $ | 71.9 | 3.43 | % | |||||||||||
Other assets | 1,445.1 | 1,434.2 | 1,417.1 | |||||||||||||||||||||||
Total assets | $ | 11,811.3 | $ | 10,855.8 | $ | 9,783.8 | ||||||||||||||||||||
Interest-Bearing Liabilities | ||||||||||||||||||||||||||
Retail deposits | ||||||||||||||||||||||||||
Demand deposits | $ | 431.3 | $ | 0.1 | 0.14 | % | $ | 423.6 | $ | 0.1 | 0.14 | % | $ | 426.5 | $ | 0.1 | 0.14 | % | ||||||||
Savings deposits | 3,752.1 | 7.8 | 0.83 | % | 3,561.3 | 6.8 | 0.77 | % | 3,010.1 | 4.4 | 0.59 | % | ||||||||||||||
Money market deposits | 241.7 | 0.2 | 0.26 | % | 256.8 | 0.2 | 0.25 | % | 265.2 | 0.1 | 0.19 | % | ||||||||||||||
Certificate of deposits | 762.7 | 1.4 | 0.71 | % | 787.4 | 1.3 | 0.67 | % | 945.6 | 1.7 | 0.74 | % | ||||||||||||||
Total retail deposits | 5,187.8 | 9.5 | 0.73 | % | 5,029.1 | 8.4 | 0.67 | % | 4,647.4 | 6.3 | 0.55 | % | ||||||||||||||
Government deposits | ||||||||||||||||||||||||||
Demand deposits | 209.7 | 0.2 | 0.40 | % | 225.3 | 0.2 | 0.39 | % | 155.3 | 0.1 | 0.39 | % | ||||||||||||||
Savings deposits | 401.0 | 0.5 | 0.52 | % | 374.1 | 0.5 | 0.52 | % | 301.2 | 0.4 | 0.53 | % | ||||||||||||||
Certificate of deposits | 331.2 | 0.3 | 0.34 | % | 356.8 | 0.3 | 0.35 | % | 341.8 | 0.3 | 0.32 | % | ||||||||||||||
Total government deposits | 941.9 | 1.0 | 0.43 | % | 956.2 | 1.0 | 0.43 | % | 798.3 | 0.8 | 0.41 | % | ||||||||||||||
Total deposits | 6,129.7 | 10.5 | 0.68 | % | 5,985.3 | 9.4 | 0.63 | % | 5,445.7 | 7.1 | 0.53 | % | ||||||||||||||
Federal Home Loan Bank advances | 1,828.3 | 4.2 | 0.90 | % | 1,161.0 | 3.2 | 1.08 | % | 1,100.4 | 0.6 | 0.22 | % | ||||||||||||||
Other | 306.5 | 1.8 | 2.38 | % | 359.3 | 1.8 | 2.39 | % | 249.0 | 1.7 | 2.66 | % | ||||||||||||||
Total interest-bearing liabilities | 8,264.5 | 16.5 | 0.79 | % | 7,505.6 | 14.4 | 0.78 | % | 6,795.1 | 9.4 | 0.56 | % | ||||||||||||||
Noninterest-bearing deposits (2) | 1,606.2 | 1,382.6 | 1,027.8 | |||||||||||||||||||||||
Other liabilities | 479.0 | 544.3 | 579.0 | |||||||||||||||||||||||
Stockholders' equity | 1,461.6 | 1,423.3 | 1,381.9 | |||||||||||||||||||||||
Total liabilities and stockholder's equity | $ | 11,811.3 | $ | 10,855.8 | $ | 9,783.8 | ||||||||||||||||||||
Net interest-earning assets | $ | 2,101.7 | $ | 1,916.0 | $ | 1,571.6 | ||||||||||||||||||||
Net interest income | $ | 72.5 | $ | 64.9 | $ | 62.5 | ||||||||||||||||||||
Interest rate spread (3) | 2.63 | % | 2.60 | % | 2.87 | % | ||||||||||||||||||||
Net interest margin (4) | 2.79 | % | 2.75 | % | 2.98 | % | ||||||||||||||||||||
Ratio of average interest-earning assets to interest-bearing liabilities | 125.4 | % | 125.5 | % | 123.1 | % | ||||||||||||||||||||
Total average deposits | $ | 7,735.9 | $ | 7,367.9 | $ | 6,473.5 |
(1) | Consumer loans include: residential first mortgage, second mortgage, HELOC and other consumer loans. Commercial loans include: commercial real estate, commercial and industrial and warehouse lending loans. |
(2) | Includes company controlled deposits that arise due to the servicing of loans for others, which do not bear interest. |
(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) | Net interest margin is net interest income divided by average interest-earning assets. |
Six Months Ended | |||||||||||||||||
June 30, 2015 | June 30, 2014 | ||||||||||||||||
Average Balance | Interest | Annualized Yield/Rate | Average Balance | Interest | Annualized Yield/Rate | ||||||||||||
Interest-Earning Assets | |||||||||||||||||
Loans held-for-sale | $ | 2,030.7 | $ | 39.5 | 3.89 | % | $ | 1,407.6 | $ | 29.4 | 4.18 | % | |||||
Loans with government guarantees | 746.9 | 10.0 | 2.67 | % | 1,253.5 | 15.9 | 2.54 | % | |||||||||
Loans held-for-investment | |||||||||||||||||
Consumer loans (1) | 2,765.0 | 52.3 | 3.79 | % | 2,792.8 | 54.5 | 3.90 | % | |||||||||
Commercial loans (1) | 1,852.4 | 37.2 | 3.99 | % | 1,090.8 | 20.8 | 3.80 | % | |||||||||
Total loans held-for-investment | 4,617.4 | 89.5 | 3.87 | % | 3,883.6 | 75.3 | 3.87 | % | |||||||||
Investment securities available-for-sale or trading | 2,231.9 | 28.6 | 2.56 | % | 1,358.3 | 17.4 | 2.57 | % | |||||||||
Interest-earning deposits | 269.6 | 0.7 | 0.49 | % | 196.7 | 0.3 | 0.27 | % | |||||||||
Total interest-earning assets | 9,896.5 | $ | 168.3 | 3.40 | % | 8,099.7 | $ | 138.3 | 3.41 | % | |||||||
Other assets | 1,439.7 | 1,447.5 | |||||||||||||||
Total assets | $ | 11,336.2 | $ | 9,547.2 | |||||||||||||
Interest-Bearing Liabilities | |||||||||||||||||
Retail deposits | |||||||||||||||||
Demand deposits | $ | 427.5 | $ | 0.3 | 0.14 | % | $ | 423.1 | $ | 0.3 | 0.14 | % | |||||
Savings deposits | 3,657.2 | 14.5 | 0.80 | % | 2,942.9 | 7.7 | 0.53 | % | |||||||||
Money market deposits | 249.2 | 0.3 | 0.26 | % | 272.7 | 0.2 | 0.18 | % | |||||||||
Certificate of deposits | 775.0 | 2.7 | 0.69 | % | 966.2 | 3.6 | 0.74 | % | |||||||||
Total retail deposits | 5,108.9 | 17.8 | 0.70 | % | 4,604.9 | 11.8 | 0.52 | % | |||||||||
Government deposits | |||||||||||||||||
Demand deposits | 217.5 | 0.4 | 0.39 | % | 138.8 | 0.2 | 0.37 | % | |||||||||
Savings deposits | 387.6 | 1.0 | 0.52 | % | 255.5 | 0.6 | 0.48 | % | |||||||||
Certificate of deposits | 343.9 | 0.6 | 0.35 | % | 339.4 | 0.5 | 0.30 | % | |||||||||
Total government deposits | 949.0 | 2.0 | 0.43 | % | 733.7 | 1.3 | 0.38 | % | |||||||||
Total deposits | 6,057.9 | 19.8 | 0.66 | % | 5,338.6 | 13.1 | 0.50 | % | |||||||||
Federal Home Loan Bank advances | 1,496.5 | 7.3 | 0.97 | % | 993.7 | 1.1 | 0.23 | % | |||||||||
Other | 332.7 | 3.8 | 2.28 | % | 248.2 | 3.4 | 2.66 | % | |||||||||
Total interest-bearing liabilities | 7,887.1 | 30.9 | 0.79 | % | 6,580.5 | 17.6 | 0.54 | % | |||||||||
Noninterest-bearing deposits | 1,495.0 | 1,003.4 | |||||||||||||||
Other liabilities (2) | 511.5 | 550.1 | |||||||||||||||
Stockholders' equity | 1,442.6 | 1,413.2 | |||||||||||||||
Total liabilities and stockholder's equity | $ | 11,336.2 | $ | 9,547.2 | |||||||||||||
Net interest-earning assets | $ | 2,009.4 | $ | 1,519.2 | |||||||||||||
Net interest income | $ | 137.4 | $ | 120.7 | |||||||||||||
Interest rate spread (3) | 2.61 | % | 2.87 | % | |||||||||||||
Net interest margin (4) | 2.77 | % | 2.97 | % | |||||||||||||
Ratio of average interest-earning assets to interest-bearing liabilities | 125.5 | % | 123.1 | % | |||||||||||||
Total average deposits | $ | 7,552.9 | $ | 6,342.0 | |||||||||||||
(1) | Consumer loans include: residential first mortgage, second mortgage, HELOC and other consumer loans. Commercial loans include: commercial real estate, commercial and industrial and warehouse lending loans. |
(2) | Includes company controlled deposits that arise due to the servicing of loans for others, which do not bear interest. |
(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) | Net interest margin is net interest income divided by average interest-earning assets. |
Three Months Ended | |||||||||||||||||||
June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Net gain on loan sales | $ | 82.2 | $ | 91.3 | $ | 53.5 | $ | 52.2 | $ | 54.8 | |||||||||
Mortgage rate lock commitments (gross) | $ | 8,400.2 | $ | 9,034.9 | $ | 7,604.9 | $ | 7,713.1 | $ | 8,187.9 | |||||||||
Loans sold and securitized | $ | 7,571.4 | $ | 6,253.7 | $ | 6,830.6 | $ | 7,072.4 | $ | 6,029.8 | |||||||||
Net margin on loan sales | 1.09 | % | 1.46 | % | 0.78 | % | 0.74 | % | 0.91 | % | |||||||||
Mortgage rate lock commitments (fallout-adjusted) (1) | $ | 6,803.7 | $ | 7,185.4 | $ | 6,155.5 | $ | 6,304.4 | $ | 6,693.4 | |||||||||
Net margin on mortgage rate lock commitments (fallout-adjusted) (1) | 1.21 | % | 1.27 | % | 0.87 | % | 0.83 | % | 0.82 | % |
Six Months Ended | |||||||
June 30, 2015 | June 30, 2014 | ||||||
(Dollars in millions) | |||||||
Net gain on loan sales | $ | 173.5 | $ | 100.1 | |||
Mortgage rate lock commitments (gross) | $ | 17,435.1 | $ | 14,227.8 | |||
Loans sold and securitized | $ | 13,825.1 | $ | 10,504.1 | |||
Net margin on loan sales | 1.25 | % | 0.95 | % | |||
Mortgage rate lock commitments (fallout-adjusted) (1) | $ | 13,989.1 | $ | 11,547.0 | |||
Net margin on mortgage rate lock commitments (fallout-adjusted) (1) | 1.24 | % | 0.87 | % |
(1) | 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. The net margin is based on net gain on loan sales to fallout-adjusted mortgage rate lock commitments. |
June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
Tier 1 leverage (to adjusted tangible assets) (1) | $ | 1,308.7 | 11.47 | % | $ | 1,256.6 | 12.02 | % | $ | 1,183.6 | 12.59 | % | $ | 1,146.2 | 12.50 | % | $ | 1,195.5 | 12.59 | % | |||||||||
Total adjusted tangible asset base | $ | 11,406.1 | $ | 10,453.4 | $ | 9,403.2 | $ | 9,172.6 | $ | 9,495.5 | |||||||||||||||||||
Tier 1 common equity (to risk weighted assets) (1) | $ | 954.4 | 14.56 | % | $ | 908.6 | 15.38 | % | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||
Tier 1 capital (to risk weighted assets) (1) | $ | 1,308.7 | 19.97 | % | $ | 1,256.6 | 21.26 | % | $ | 1,183.6 | 22.81 | % | $ | 1,146.2 | 23.03 | % | $ | 1,195.5 | 23.87 | % | |||||||||
Total capital (to risk weighted assets) | 1,395.6 | 21.30 | % | 1,336.0 | 22.61 | % | 1,251.9 | 24.12 | % | 1,212.0 | 24.35 | % | 1,261.8 | 25.19 | % | ||||||||||||||
Risk weighted asset base | $ | 6,553.4 | $ | 5,909.4 | $ | 5,189.8 | $ | 4,978.0 | $ | 5,008.9 |
(1) | On January 1, 2015, the Basel III rules became effective, subject to transition provisions primarily related to regulatory deductions and adjustments impacting common equity Tier 1 capital and Tier 1 capital. We reported under Basel I (which included the Market Risk Final Rules) at December 31, 2014 and prior. |
June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
Tier 1 leverage (to adjusted tangible assets) (1) | $ | 1,336.9 | 11.70 | % | $ | 1,277.5 | 12.21 | % | $ | 1,167.4 | 12.43 | % | $ | 1,134.4 | 12.38 | % | $ | 1,188.9 | 12.52 | % | |||||||||
Total adjusted tangible asset base | $ | 11,424.2 | $ | 10,470.7 | $ | 9,392.2 | $ | 9,162.3 | $ | 9,493.5 | |||||||||||||||||||
Tier 1 common equity (to risk weighted assets) (1) | $ | 1,336.9 | 20.35 | % | $ | 1,277.5 | 21.58 | % | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||
Tier 1 capital (to risk weighted assets) (1) | $ | 1,336.9 | 20.35 | % | $ | 1,277.5 | 21.58 | % | $ | 1,167.4 | 22.54 | % | $ | 1,134.4 | 22.84 | % | $ | 1,188.9 | 23.75 | % | |||||||||
Total capital (to risk weighted assets) | 1,423.3 | 21.66 | % | 1,357.4 | 22.91 | % | 1,235.0 | 23.85 | % | 1,199.4 | 24.14 | % | 1,254.4 | 25.05 | % | ||||||||||||||
Risk weighted asset base | $ | 6,569.8 | $ | 5,925.4 | $ | 5,178.8 | $ | 4,968.0 | $ | 5,006.9 |
(1) | On January 1, 2015, the Basel III rules became effective, subject to transition provisions primarily related to regulatory deductions and adjustments impacting common equity Tier 1 capital and Tier 1 capital. We reported under Basel I (which included the Market Risk Final Rules) at December 31, 2014 and prior. |
Loan Originations (Dollars in millions) (Unaudited) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
June 30, 2015 | March 31, 2015 | June 30, 2014 | |||||||||||||||
Consumer loans | |||||||||||||||||
Mortgage (1) | $ | 8,448.0 | 99.1 | % | $ | 7,254.2 | 99.2 | % | $ | 5,950.7 | 97.9 | % | |||||
Other consumer (2) | 32.8 | 0.4 | % | 21.3 | 0.3 | % | 20.2 | 0.3 | % | ||||||||
Total consumer loans | 8,480.8 | 99.5 | % | 7,275.5 | 99.5 | % | 5,970.9 | 98.2 | % | ||||||||
Commercial loans (3) | 40.5 | 0.5 | % | 38.0 | 0.5 | % | 111.4 | 1.8 | % | ||||||||
Total loan originations | $ | 8,521.3 | 100.0 | % | $ | 7,313.5 | 100.0 | % | $ | 6,082.3 | 100.0 | % |
Six Months Ended | |||||||||||
June 30, 2015 | June 30, 2014 | ||||||||||
Mortgage (1) | $ | 15,702.1 | 99.2 | % | $ | 10,817.3 | 97.3 | % | |||
Other consumer (2) | 54.1 | 0.3 | % | 37.8 | 0.3 | % | |||||
Total consumer loans | 15,756.2 | 99.5 | % | 10,855.1 | 97.6 | % | |||||
Commercial loans (3) | 78.6 | 0.5 | % | 266.1 | 2.4 | % | |||||
Total loan originations | $ | 15,834.8 | 100.0 | % | $ | 11,121.2 | 100.0 | % |
(1) | Includes residential first mortgage and second mortgage loans. |
(2) | Other consumer loans include: HELOC and other consumer loans. |
(3) | Commercial loans include: commercial real estate and commercial and industrial loans. |
June 30, 2015 | March 31, 2015 | December 31, 2014 | June 30, 2014 | ||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Residential first mortgage | $ | 2,495.3 | 46.7 | % | $ | 2,012.8 | 43.4 | % | $ | 2,193.3 | 49.2 | % | $ | 2,353.0 | 53.9 | % | |||||||
Second mortgage | 142.5 | 2.7 | % | 146.0 | 3.2 | % | 149.0 | 3.4 | % | 157.8 | 3.6 | % | |||||||||||
HELOC | 422.2 | 7.9 | % | 315.9 | 6.8 | % | 256.3 | 5.8 | % | 268.5 | 6.2 | % | |||||||||||
Other | 30.8 | 0.6 | % | 30.3 | 0.7 | % | 31.1 | 0.7 | % | 33.4 | 0.8 | % | |||||||||||
Total consumer loans | 3,090.8 | 57.9 | % | 2,505.0 | 54.1 | % | 2,629.7 | 59.1 | % | 2,812.7 | 64.5 | % | |||||||||||
Commercial loans | |||||||||||||||||||||||
Commercial real estate | 628.5 | 11.8 | % | 635.1 | 13.7 | % | 620.0 | 13.9 | % | 523.0 | 12.0 | % | |||||||||||
Commercial and industrial | 412.4 | 7.7 | % | 407.7 | 8.8 | % | 429.2 | 9.7 | % | 340.3 | 7.8 | % | |||||||||||
Warehouse lending | 1,203.5 | 22.6 | % | 1,083.3 | 23.4 | % | 768.6 | 17.3 | % | 683.3 | 15.7 | % | |||||||||||
Total commercial loans | 2,244.4 | 42.1 | % | 2,126.1 | 45.9 | % | 1,817.8 | 40.9 | % | 1,546.6 | 35.5 | % | |||||||||||
Total loans held-for-investment | $ | 5,335.2 | 100.0 | % | $ | 4,631.1 | 100.0 | % | $ | 4,447.5 | 100.0 | % | $ | 4,359.3 | 100.0 | % |
June 30, 2015 | March 31, 2015 | December 31, 2014 | June 30, 2014 | ||||||||||||||||||||
Unpaid Principal Balance | Number of accounts | Unpaid Principal Balance | Number of accounts | Unpaid Principal Balance | Number of accounts | Unpaid Principal Balance | Number of accounts | ||||||||||||||||
Serviced for own loan portfolio (1) | $ | 5,210.7 | 28,106 | $ | 4,932.6 | 27,235 | $ | 4,521.1 | 26,268 | $ | 4,068.7 | 26,614 | |||||||||||
Serviced for others | 27,679.3 | 124,299 | 27,046.4 | 126,393 | 25,426.8 | 117,881 | 25,342.3 | 127,409 | |||||||||||||||
Subserviced for others (2) | 43,291.9 | 225,268 | 44,708.1 | 231,223 | 46,723.7 | 238,498 | 43,103.4 | 212,927 | |||||||||||||||
Total residential loans serviced | $ | 76,181.9 | 377,673 | $ | 76,687.1 | 384,851 | $ | 76,671.6 | 382,647 | $ | 72,514.4 | 366,950 |
(1) | Includes loans held-for-investment (residential first mortgage, second mortgage and HELOC), loans-held-for-sale (residential first mortgage), loans with government guarantees (residential first mortgage) and repossessed assets. |
(2) | Does not include temporary short-term subservicing performed as a result of sales of servicing-released mortgage servicing rights. Includes repossessed assets. |
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, 2015 | March 31, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | |||||||||||||||
Beginning balance | $ | 253.0 | $ | 297.0 | $ | 307.0 | $ | 297.0 | $ | 207.0 | |||||||||
Provision (release) for loan losses | (13.3 | ) | (3.5 | ) | 6.2 | (16.8 | ) | 118.5 | |||||||||||
Charge-offs | |||||||||||||||||||
Consumer loans | |||||||||||||||||||
Residential first mortgage | (18.5 | ) | (40.8 | ) | (5.6 | ) | (59.3 | ) | (16.5 | ) | |||||||||
Second mortgage | (0.7 | ) | (0.8 | ) | (1.1 | ) | (1.6 | ) | (2.2 | ) | |||||||||
HELOC | (0.3 | ) | (0.9 | ) | (1.1 | ) | (1.2 | ) | (3.7 | ) | |||||||||
Other | (0.7 | ) | (0.7 | ) | (0.5 | ) | (1.4 | ) | (1.0 | ) | |||||||||
Total consumer loans | (20.2 | ) | (43.2 | ) | (8.3 | ) | (63.5 | ) | (23.4 | ) | |||||||||
Commercial loans | |||||||||||||||||||
Commercial real estate | — | — | (1.8 | ) | — | (1.8 | ) | ||||||||||||
Commercial and industrial | (0.2 | ) | — | — | (0.2 | ) | — | ||||||||||||
Total commercial loans | (0.2 | ) | — | (1.8 | ) | (0.2 | ) | (1.8 | ) | ||||||||||
Total charge-offs | (20.4 | ) | (43.2 | ) | (10.1 | ) | (63.7 | ) | (25.2 | ) | |||||||||
Recoveries | |||||||||||||||||||
Consumer loans | |||||||||||||||||||
Residential first mortgage | 1.2 | 0.3 | 0.5 | 1.6 | 1.6 | ||||||||||||||
Second mortgage | 0.5 | 0.1 | — | 0.6 | 0.2 | ||||||||||||||
HELOC | 0.1 | 0.1 | 0.1 | 0.2 | 0.1 | ||||||||||||||
Other | 0.6 | 0.5 | 0.4 | 1.1 | 0.7 | ||||||||||||||
Total consumer loans | 2.4 | 1.0 | 1.0 | 3.5 | 2.6 | ||||||||||||||
Commercial loans | |||||||||||||||||||
Commercial real estate | 0.3 | 1.7 | 1.9 | 2.0 | 3.0 | ||||||||||||||
Commercial and industrial | — | — | — | — | 0.1 | ||||||||||||||
Total commercial loans | 0.3 | 1.7 | 1.9 | 2.0 | 3.1 | ||||||||||||||
Total recoveries | 2.7 | 2.7 | 2.9 | 5.5 | 5.7 | ||||||||||||||
Charge-offs, net of recoveries | (17.7 | ) | (40.5 | ) | (7.2 | ) | (58.2 | ) | (19.5 | ) | |||||||||
Ending balance | $ | 222.0 | $ | 253.0 | $ | 306.0 | $ | 222.0 | $ | 306.0 | |||||||||
Net charge-off ratio (annualized) (1) | 1.49 | % | 3.97 | % | 0.78 | % | 2.63 | % | 1.07 | % | |||||||||
Net charge-off ratio, adjusted (annualized) (1)(2) | 0.26 | % | 0.45 | % | 0.78 | % | 0.34 | % | 0.94 | % | |||||||||
Net charge-off ratio (annualized) also by loan type (1) | |||||||||||||||||||
Residential first mortgage | 2.9 | % | 7.5 | % | 0.9 | % | 5.1 | % | 1.2 | % | |||||||||
Second mortgage | 1.0 | % | 2.9 | % | 4.1 | % | 2.0 | % | 4.0 | % | |||||||||
HELOC and consumer | 0.4 | % | 2.8 | % | 2.9 | % | 1.3 | % | 4.9 | % | |||||||||
Commercial real estate | (0.2 | )% | (1.1 | )% | (0.1 | )% | (0.6 | )% | (0.5 | )% | |||||||||
Commercial and industrial | 0.2 | % | — | % | (0.1 | )% | 0.1 | % | (0.1 | )% |
(1) | Excludes loans carried under the fair value option. |
(2) | Excludes charge-offs of $14.6 million and $36.0 million related to the sale of nonperforming loans and TDRs during the three months ended June 30, 2015 and March 31, 2015, respectively, and $50.6 million and $2.3 million during the six months ended June 30, 2015 and 2014, respectively. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, 2015 | March 31, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | |||||||||||||||||
Balance, beginning of period | $ | 53.0 | $ | 53.0 | $ | 48.0 | $ | 53.0 | $ | 54.0 | |||||||||||
Provision (release) | |||||||||||||||||||||
Charged to gain on sale for current loan sales | 2.2 | 1.9 | 1.7 | 4.1 | 2.9 | ||||||||||||||||
Charged to representation and warranty provision | (5.9 | ) | (1.5 | ) | 5.2 | (7.4 | ) | 3.6 | |||||||||||||
Total | (3.7 | ) | 0.4 | 6.9 | (3.3 | ) | 6.5 | ||||||||||||||
Charge-offs, net | (1.3 | ) | (0.4 | ) | (4.9 | ) | (1.7 | ) | (10.5 | ) | |||||||||||
Balance, end of period | $ | 48.0 | $ | 53.0 | $ | 50.0 | $ | 48.0 | $ | 50.0 |
June 30, 2015 | Collectively Evaluated Reserves | Individually Evaluated Reserves | Total | ||||||||
Consumer loans | |||||||||||
Residential first mortgage | $ | 136.8 | $ | 13.8 | $ | 150.6 | |||||
Second mortgage | 6.2 | 8.1 | 14.3 | ||||||||
HELOC | 22.7 | 1.5 | 24.2 | ||||||||
Other | 0.6 | 0.2 | 0.8 | ||||||||
Total consumer loans | 166.3 | 23.6 | 189.9 | ||||||||
Commercial loans | |||||||||||
Commercial real estate | 15.5 | — | 15.5 | ||||||||
Commercial and industrial | 12.3 | — | 12.3 | ||||||||
Warehouse lending | 4.3 | — | 4.3 | ||||||||
Total commercial loans | 32.1 | — | 32.1 | ||||||||
Total allowance for loan losses | $ | 198.4 | $ | 23.6 | $ | 222.0 |
March 31, 2015 | Collectively Evaluated Reserves | Individually Evaluated Reserves | Total | ||||||||
Consumer loans | |||||||||||
Residential first mortgage | $ | 171.5 | $ | 15.9 | $ | 187.4 | |||||
Second mortgage | 6.5 | 5.5 | 12.0 | ||||||||
HELOC | 20.3 | 0.9 | 21.2 | ||||||||
Other | 0.3 | 0.1 | 0.4 | ||||||||
Total consumer loans | 198.6 | 22.4 | 221.0 | ||||||||
Commercial loans | |||||||||||
Commercial real estate | 16.2 | — | 16.2 | ||||||||
Commercial and industrial | 12.0 | — | 12.0 | ||||||||
Warehouse lending | 3.8 | — | 3.8 | ||||||||
Total commercial loans | 32.0 | — | 32.0 | ||||||||
Total allowance for loan losses | $ | 230.6 | $ | 22.4 | $ | 253.0 |
June 30, 2015 | March 31, 2015 | December 31, 2014 | June 30, 2014 | ||||||||||||
Nonperforming loans | $ | 41.3 | $ | 55.9 | $ | 74.8 | $ | 86.4 | |||||||
Nonperforming TDRs | 11.0 | 17.8 | 28.7 | 17.6 | |||||||||||
Nonperforming TDRs at inception but performing for less than six months | 12.8 | 10.0 | 17.0 | 16.2 | |||||||||||
Total nonperforming loans held-for-investment | 65.1 | 83.7 | 120.5 | 120.2 | |||||||||||
Real estate and other nonperforming assets, net | 17.8 | 16.5 | 18.7 | 31.5 | |||||||||||
Nonperforming assets held-for-investment, net (1) | $ | 82.9 | $ | 100.2 | $ | 139.2 | $ | 151.7 | |||||||
Ratio of nonperforming assets to total assets | 0.69 | % | 0.87 | % | 1.41 | % | 1.53 | % | |||||||
Ratio of nonperforming loans held-for-investment to loans held-for-investment | 1.22 | % | 1.81 | % | 2.71 | % | 2.76 | % | |||||||
Ratio of nonperforming assets to loans held-for-investment and repossessed assets | 1.55 | % | 2.15 | % | 3.12 | % | 3.46 | % |
(1) | Does not include nonperforming loans held-for-sale of $14.1 million, $19.0 million, $14.8 million and $6.0 million at June 30, 2015, March 31, 2015, December 31, 2014 and June 30, 2014, respectively. |
30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 days | Total Past Due | Total Investment Loans | |||||||||||
June 30, 2015 | |||||||||||||||
Consumer loans | $ | 9.7 | $ | 5.6 | $ | 65.1 | $ | 80.4 | $ | 3,090.8 | |||||
Commercial loans | — | — | — | — | 2,244.4 | ||||||||||
Total loans | $ | 9.7 | $ | 5.6 | $ | 65.1 | $ | 80.4 | $ | 5,335.2 | |||||
March 31, 2015 | |||||||||||||||
Consumer loans | $ | 21.8 | $ | 8.6 | $ | 83.7 | $ | 114.1 | $ | 2,505.0 | |||||
Commercial loans | — | — | — | — | 2,126.1 | ||||||||||
Total loans | $ | 21.8 | $ | 8.6 | $ | 83.7 | $ | 114.1 | $ | 4,631.1 | |||||
December 31, 2014 | |||||||||||||||
Consumer loans | $ | 34.1 | $ | 9.9 | $ | 120.4 | $ | 164.4 | $ | 2,629.7 | |||||
Commercial loans | — | — | — | — | 1,817.8 | ||||||||||
Total loans | $ | 34.1 | $ | 9.9 | $ | 120.4 | $ | 164.4 | $ | 4,447.5 | |||||
June 30, 2014 | |||||||||||||||
Consumer loans | 42.3 | 8.9 | 120.2 | $ | 171.4 | $ | 2,812.7 | ||||||||
Commercial loans | 0.5 | — | — | 0.5 | 1,546.6 | ||||||||||
Total loans | $ | 42.8 | $ | 8.9 | $ | 120.2 | $ | 171.9 | $ | 4,359.3 |
TDRs | |||||||||||||||
Performing | Nonperforming | Nonperforming TDRs at inception but performing for less than six months | Total | ||||||||||||
June 30, 2015 | |||||||||||||||
Consumer loans | $ | 108.0 | $ | 11.0 | $ | 12.8 | $ | 131.8 | |||||||
Commercial loans | — | — | — | — | |||||||||||
Total TDR loans | $ | 108.0 | $ | 11.0 | $ | 12.8 | $ | 131.8 | |||||||
March 31, 2015 | |||||||||||||||
Consumer loans | $ | 110.7 | $ | 17.8 | $ | 10.0 | $ | 138.5 | |||||||
Commercial loans | 0.4 | — | — | 0.4 | |||||||||||
Total TDR loans | $ | 111.1 | $ | 17.8 | $ | 10.0 | $ | 138.9 | |||||||
December 31, 2014 | |||||||||||||||
Consumer loans | $ | 361.5 | $ | 28.7 | $ | 16.9 | $ | 407.1 | |||||||
Commercial loans | 0.4 | — | — | 0.4 | |||||||||||
Total TDR loans | $ | 361.9 | $ | 28.7 | $ | 16.9 | $ | 407.5 | |||||||
June 30, 2014 | |||||||||||||||
Consumer loans | $ | 371.6 | $ | 17.6 | $ | 16.2 | $ | 405.4 | |||||||
Commercial loans | 0.4 | — | — | 0.4 | |||||||||||
Total TDR loans | $ | 372.0 | $ | 17.6 | $ | 16.2 | $ | 405.8 |
Three Months Ended | |||||||||||||||
June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | |||||||||||
Net interest income | $ | 72.5 | $ | 64.9 | $ | 61.3 | $ | 64.4 | $ | 62.5 | |||||
Noninterest income | 127.0 | 118.3 | 98.4 | 85.2 | 102.5 | ||||||||||
Adjusting items: | |||||||||||||||
Loan fees and charges (1) | — | — | — | — | (10.0 | ) | |||||||||
Representation and warranty provision (release) (2) | — | — | — | 10.3 | — | ||||||||||
Adjusted noninterest income | $ | 127.0 | $ | 118.3 | $ | 98.4 | $ | 95.5 | $ | 92.5 | |||||
Noninterest expense | $ | 138.9 | $ | 137.0 | $ | 139.2 | $ | 179.4 | $ | 121.4 | |||||
Adjusting items: | |||||||||||||||
Legal and professional expense (3) | — | — | — | (1.1 | ) | (2.9 | ) | ||||||||
Other noninterest expense (4) | — | — | — | (37.5 | ) | 10.0 | |||||||||
Adjusted noninterest expense | $ | 138.9 | $ | 137.0 | $ | 139.2 | $ | 140.8 | $ | 128.5 | |||||
Efficiency ratio | 69.6 | % | 74.8 | % | 87.2 | % | 119.9 | % | 73.6 | % | |||||
Net (loss) income applicable to common stockholders | $ | 46.4 | $ | 31.5 | $ | 11.1 | $ | (27.6 | ) | $ | 25.5 | ||||
Adjustment to remove adjusting items (1-4 above), net of tax | — | — | — | 48.9 | (17.1 | ) | |||||||||
Tax impact of adjusting items | — | — | — | (13.6 | ) | 6.0 | |||||||||
Adjusted net (loss) income applicable to common stockholders | $ | 46.4 | $ | 31.5 | $ | 11.1 | $ | 7.7 | $ | 14.4 | |||||
Diluted (loss) earnings per share | $ | 0.68 | $ | 0.43 | $ | 0.07 | $ | (0.61 | ) | $ | 0.33 | ||||
Adjustment to remove adjusting items | — | — | — | 0.87 | (0.30 | ) | |||||||||
Tax impact of adjusting items | — | — | — | (0.24 | ) | 0.11 | |||||||||
Diluted adjusted (loss) earnings per share | $ | 0.68 | $ | 0.43 | $ | 0.07 | $ | 0.02 | $ | 0.14 | |||||
Weighted average shares outstanding | |||||||||||||||
Basic | 56,436,026 | 56,385,454 | 56,310,858 | 56,249,300 | 56,230,458 | ||||||||||
Diluted | 57,165,072 | 56,775,039 | 56,792,751 | 56,249,300 | 56,822,102 |
(1) | Reverse benefit for contract renegotiation. |
(2) | Add back reserve increase related to indemnifications claims on government insured loans. |
(3) | Adjust for legal expenses related to the litigation settlements. |
(4) | Adjust for CFPB litigation settlement expense. |
June 30, 2015 | March 31, 2015 | December 31, 2014 | June 30, 2014 | ||||||||||||
Nonperforming assets / Tier 1 capital + allowance for loan losses | (Dollars in millions) (Unaudited) | ||||||||||||||
Nonperforming assets | $ | 82.9 | $ | 100.2 | $ | 139.2 | $ | 151.7 | |||||||
Tier 1 capital | 1,308.7 | 1,256.6 | 1,183.6 | 1,195.5 | |||||||||||
Allowance for loan losses | (222.0 | ) | (253.0 | ) | (297.0 | ) | (306.0 | ) | |||||||
Tier 1 capital + allowance for loan losses | $ | 1,530.7 | $ | 1,509.6 | $ | 1,480.6 | $ | 1,501.5 | |||||||
Nonperforming assets / Tier 1 capital + allowance for loan losses | 5.4 | % | 6.6 | % | 9.4 | % | 10.1 | % | |||||||
June 30, 2015 | Common Equity Tier 1 (to Risk Weighted Assets) | Tier 1 Leverage (to Adjusted Tangible Assets) | Tier 1 Capital (to Risk Weighted Assets) | Total Risk-Based Capital (to Risk Weighted Assets) | |||||||||||
(Dollars in millions) (Unaudited) | |||||||||||||||
Flagstar Bancorp (the Company) | |||||||||||||||
Regulatory capital – Basel III (transitional) to Basel III (fully phased-in) (1) | |||||||||||||||
Basel III (transitional) | $ | 954.4 | $ | 1,308.7 | $ | 1,308.7 | $ | 1,395.6 | |||||||
Increased deductions related to deferred tax assets, mortgage servicing assets, and other capital components | (412.6 | ) | (262.2 | ) | (262.2 | ) | (261.6 | ) | |||||||
Basel III (fully phased-in) capital (1) | $ | 541.8 | $ | 1,046.5 | $ | 1,046.5 | $ | 1,134.0 | |||||||
Risk-weighted assets – Basel III (transitional) to Basel III (fully phased-in) (1) | |||||||||||||||
Basel III assets (transitional) | $ | 6,553.4 | $ | 11,406.1 | $ | 6,553.4 | $ | 6,553.4 | |||||||
Net change in assets | (138.6 | ) | (261.2 | ) | (138.6 | ) | (138.6 | ) | |||||||
Basel III (fully phased-in) assets (1) | $ | 6,414.8 | $ | 11,144.9 | $ | 6,414.8 | $ | 6,414.8 | |||||||
Capital ratios | |||||||||||||||
Basel III (transitional) | 14.56 | % | 11.47 | % | 19.97 | % | 21.30 | % | |||||||
Basel III (fully phased-in) (1) | 8.43 | % | 9.40 | % | 16.33 | % | 17.68 | % | |||||||
(1) | On January 1, 2015, the Basel III rules became effective, subject to transition provisions primarily related to regulatory deductions and adjustments impacting common equity Tier 1 capital and Tier 1 capital. We reported under Basel I (which included the Market Risk Final Rules) at December 31, 2014. |
June 30, 2015 | Common Equity Tier 1 (to Risk Weighted Assets) | Tier 1 Leverage (to Adjusted Tangible Assets) | Tier 1 Capital (to Risk Weighted Assets) | Total Risk-Based Capital (to Risk Weighted Assets) | |||||||||||
Flagstar Bank (the Bank) | (Dollars in millions) (Unaudited) | ||||||||||||||
Regulatory capital – Basel III (transitional) to Basel III (fully phased-in) (1) | |||||||||||||||
Basel III (transitional) | $ | 1,336.9 | $ | 1,336.9 | $ | 1,336.9 | $ | 1,423.3 | |||||||
Increased deductions related to deferred tax assets, mortgage servicing assets, and other capital components | (198.5 | ) | (198.5 | ) | (198.5 | ) | (198.5 | ) | |||||||
Basel III (fully phased-in) capital (1) | $ | 1,138.4 | $ | 1,138.4 | $ | 1,138.4 | $ | 1,224.8 | |||||||
Risk-weighted assets – Basel III (transitional) to Basel III (fully phased-in) (1) | |||||||||||||||
Basel III assets (transitional) | $ | 6,569.8 | $ | 11,424.2 | $ | 6,569.8 | $ | 6,569.8 | |||||||
Net change in assets | 58.7 | (197.5 | ) | 58.7 | 58.7 | ||||||||||
Basel III (fully phased-in) assets (1) | $ | 6,628.5 | $ | 11,226.7 | $ | 6,628.5 | $ | 6,628.5 | |||||||
Capital ratios | |||||||||||||||
Basel III (transitional) | 20.35 | % | 11.70 | % | 20.35 | % | 21.66 | % | |||||||
Basel III (fully phased-in) (1) | 17.17 | % | 10.14 | % | 17.17 | % | 18.47 | % | |||||||
(1) | On January 1, 2015, the Basel III rules became effective, subject to transition provisions primarily related to regulatory deductions and adjustments impacting common equity Tier 1 capital and Tier 1 capital. We reported under Basel I (which included the Market Risk Final Rules) at December 31, 2014. |
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