- Flagstar Bancorp (FBC +3.3%) is the outlier to the upside among a hard-hit regional banking sector (KRE -2.1%) today following last night's Q4 earnings results.
- The bank reported a big headline number ($2.77 per share in earnings) after finally reversing the valuation allowance on its DTA. However, notes BTIG's Mark Palmer (who was a big bull on the stock at about $13 per share, but not so much at $20), the results of the underlying core business left something to be desired.
- Net interest income was well lower, as was noninterest income as mortgage business vanished. On the expense side, the bank does appear to be executing on its plan to cut costs and guided towards the high-end of its previously estimated cost savings for this year.
DTA allowance boosts Flagstar, but what about underlying business?
Jan 23 2014, 14:01 ET