- The eye-popping headline earnings of $160.5M, or $2.77 per share includes a tax benefit of $410.4M mostly due to the full reversal of the bank's DTA valuation allowance. There's also a gain of $24.9M thanks to better-than-reserved for mortgage settlements with the GSEs. Balanced against those are two extraordinary losses of about $238M.
- Turning to operations, net interest income of $41.2M fell from $42.7M in Q3 and $73.9M a year ago. NIM of 1.8% is up 12 bps from Q3 and down 46 bps from a year ago.
- Noninterest income of $113.1M fell from $134.3M in Q3 and $285.8M a year ago, driven be a decrease in the gain on loan sales ($44.8M in Q4 vs. $239M a year ago). Mortgage originations of $6.4B fell from $7.7B in Q3 and $15.4B a year ago.
- Adjusted noninterest expense of $150.1M fell from $158.4M in Q3 and $398M a year ago. Compensation expense of $69.6M vs. $72.1M last year. Commission expense of $9.4M vs. $22.2M. Legal expense of $79.2M vs. $213.4M. The bank guides for the high-end of previously provided annualized cost savings of $145M-$190M this year.
- Allowance for loan losses of $207M compares to $305M last year. Net charge-offs of $14.1M vs. $50.4M last year.
- Tier 1 leverage ratio of 13.97%. Book value per share of $20.66 is up 28% Y/Y. CEO DiNello: "Our focus now can shift to prudently redeploying excess capital."
- FBC no trades AH
- CC tomorrow at 11 ET
- Press release
Flagstar continues restructuring progress
Jan 22 2014, 18:54 ET