PR Newswire | Jan 21, 2021 06:31AM EST

$2.83 Per Diluted Share

01/21 05:30 CST

Flagstar Bancorp Reports Fourth Quarter 2020 Net Income of $154 million, or $2.83 Per Diluted Share TROY, Mich., Jan. 21, 2021

TROY, Mich., Jan. 21, 2021 /PRNewswire/ --

Key Highlights - Fourth Quarter 2020

* Net interest income grew by $9 million with lower deposit costs and higher warehouse balances. * Mortgage revenue was $232 million as fallout adjusted lock volume and gain on sale margins stayed strong. * Asset quality remained solid with low levels of nonperforming loans and an industry-leading coverage ratio. * Tangible book value per share reached $38.80 at year-end, representing a 36 percent increase for 2020.

Flagstar Bancorp, Inc. (NYSE: FBC), the holding company for Flagstar Bank, today reported fourth quarter 2020 net income of $154 million, or $2.83 per diluted share, compared to third quarter 2020 net income of $222 million, or $3.88 per diluted share and fourth quarter 2019 net income of $58 million, or $1.00 per diluted share.

"It was yet another outstanding quarter, capping off an exceptionally successful year for Flagstar," said Alessandro DiNello, president and chief executive officer of Flagstar Bancorp, Inc. "All of our business segments contributed to produce earnings of $2.83 per share--75 percent of what we earned for the full year of 2019."

"Banking was once again a standout, as net interest income climbed $9 million to $189 million. And once again, our warehouse business led the way, as we continued to grow the low-risk balances this business generates. Our impressive performance in warehouse, coupled with a concerted effort to reduce funding costs, resulted in a flat net interest margin. In fact, net interest margin actually expanded 4 basis points when excluding those loans with government guarantees where we have the right to repurchase.

"We closed the quarter servicing and subservicing approximately 1.1 million loans, consistent with the prior quarter, despite the ongoing pressure of elevated prepayments. This is a testament to our business model, the quality of the service delivered, and the strength of the relationships we have developed with our subservicing partners.

"Our mortgage team continues to deliver, achieving revenues of $232 million for the quarter. While gain on sale margins did compress, we were pleased with how well they held up, finishing at 1.93 percent for the quarter. The team's all-out efforts--coupled with our diverse, multi-channel mortgage platform--made it possible for us to deliver a quality experience to customers all year long in the face of unprecedented volumes.

"Overall, 2020 was one for the record books. The performance of our mortgage and warehouse businesses was extraordinary, supported by the consistent results we have come to expect from servicing. Thanks to this success, we were positioned not only to secure an investment grade rating from Moody's rating agency, but were also able to execute a $150 million stock buyback.

"But the real story of the year was our employees. I could not be more proud of the way they responded, and continue to respond, to COVID-19. First, we had a business continuity plan in place and ready to go, and second, our employees did a masterful job of executing it. We've adapted to the change in our workplace and our success is written in our results. With the momentum of a strong year behind us and the power of a diversified franchise carrying us forward, we believe we are well positioned for continued success in 2021."

Income Statement Highlights

Three Months Ended

December 31,September 30,June 30,March 31,December 31, 2020 2020 2020 2020 2019

(Dollars in millions, except per share data)

Net interest income $ 189 $ 180 $ 168 $ 148 $ 152

Provision for credit 2 32 102 14 - losses

Noninterest income 337 452 378 157 162

Noninterest expense 319 305 296 235 245

Income before income taxes205 295 148 56 69

Provision for income taxes51 73 32 10 11

Net income $ 154 $ 222 $ 116 $ 46 $ 58

Income per share:

Basic $ 2.86 $ 3.90 $ 2.04$ 0.80 $ 1.01

Diluted $ 2.83 $ 3.88 $ 2.03$ 0.80 $ 1.00

Key Ratios

Three Months Ended

December 31,September 30,June 30,March 31,December 31, 2020 2020 2020 2020 2019

Net interest margin 2.78 % 2.78 % 2.86% 2.81 % 2.91 %

Adjusted net interest margin (2) 2.98 % 2.94 % 2.88% 2.81 % 2.91 %

Return on average assets 2.1 % 3.1 % 1.8 % 0.8 % 1.0 %

Return on average common equity 27.6 % 41.5 % 23.5% 9.8 % 12.7 %

Efficiency ratio 60.8 % 48.3 % 54.3% 77.1 % 78.2 %

HFI loan-to-deposit ratio 74.5 % 75.9 % 76.7% 74.9 % 76.5 %

Adjusted HFI loan-to-deposit ratio (1)69.8 % 74.8 % 85.4% 86.3 % 84.6 %

(1) Excludes warehouse loans and custodial deposits. See Non-GAAP Reconciliation for further information.

(2) Excludes loans with government guarantees available for repurchase. See Non-GAAP Reconciliation for further information.

Average Balance Sheet Highlights

Three Months Ended % Change

December September 30,June 30, March 31,December 31, Yr/ 31, 2020 2020 2020 2019 SeqYr 2020

(Dollars in millions)

Average interest-earning assets $27,100 $25,738 $23,692$21,150$20,708 5%31%

Average loans held-for-sale (LHFS) 5,672 5,602 5,645 5,248 5,199 1%9 %

Average loans held-for-investment (LHFI)15,703 14,839 13,596 11,823 12,168 6%29%

Average total deposits 21,068 19,561 17,715 15,795 15,904 8%32%

Net Interest Income

Net interest income in the fourth quarter was $189 million, an increase of $9 million (5 percent) compared to the third quarter. The increase was primarily driven by warehouse loan growth and the impact of lower rates on deposit costs, which was partially offset by lower yields on earning assets. Average earning assets increased $1.4 billion, reflecting an increase of $1.3 billion in average total loans, primarily warehouse, partially offset by a $0.3 billion decrease in average investment securities.

The net interest margin in the fourth quarter was 2.78 percent, flat to the prior quarter. Excluding the impact from the loans with government guarantees that have not been repurchased and do not accrue interest, adjusted net interest margin expanded 4 basis points to 2.98 percent in the fourth quarter, compared to adjusted net interest margin of 2.94 percent in the prior quarter. The increase in the adjusted net interest margin was primarily driven by an increase in higher yielding warehouse loans and lower rates on deposits. Retail banking deposit rates decreased 18 basis points driven by the expiration of promotional rates on some of our savings deposits and the maturity of higher cost time deposits. This improvement more than offset the impact of declining interest rates in certain other categories of loans held-for-investment.

Loans held-for-investment averaged $15.7 billion for the fourth quarter, increasing $0.9 billion (6 percent) from the prior quarter. The increase was primarily driven by $1.3 billion (22 percent) higher average warehouse loan balances as we grew this business and took advantage of the strong mortgage market. The result was partially offset by $0.2 billion (5 percent) lower average consumer loans, primarily due to a decrease in our residential first mortgage portfolio and $0.2 billion (12 percent) lower commercial and industrial loans.

Average total deposits were $21.1 billion in the fourth quarter, increasing $1.5 billion (8 percent) from the third quarter. Average custodial deposits increased $1.2 billion (16 percent) due to higher prepayments from refinancing and average demand and savings deposits and government deposits increased $0.5 billion (6 percent).

Provision for Credit Losses

The provision for credit losses was $2 million for the fourth quarter, as compared to $32 million for the third quarter 2020. Our allowance for credit losses remained flat as compared to the balance as of September 30, 2020, due to continued economic uncertainty caused by COVID-19. We continue to believe the economic recovery will be challenged by the COVID-19 pandemic for an extended period of time and significant uncertainty remains related to distribution of the vaccines and government stimulus, especially as it affects consumer loan forbearance and the commercial real estate sector.

Noninterest Income

Noninterest income decreased $115 million to $337 million in the fourth quarter, as compared to $452 million for the third quarter, primarily due to lower mortgage revenues.

Fourth quarter net gain on loan sales decreased $114 million, to $232 million, as compared to $346 million in the third quarter 2020. The net gain on loan sale margin decreased 38 basis points, to 1.93 percent for the fourth quarter 2020, as compared to 2.31 percent for the third quarter 2020. Fallout-adjusted locks decreased $3 billion, or 20 percent, to $12.0 billion, reflecting seasonal holiday factors which were partially offset by the continued strength of the mortgage environment due to lower rates.

Lower mortgage rates continued to drive refinance activity causing prepayment speeds to be elevated, resulting in a $12 million decrease in the net return on mortgage servicing rights in the fourth quarter 2020, compared to a $12 million net return for the third quarter.

Loan fees and charges increased $8 million, to $53 million for the fourth quarter, compared to $45 million for the third quarter, primarily due to higher loss mitigation and forbearance fee income on subserviced loans despite a 9 percent decrease in mortgage closings.

Mortgage Metrics

As of/Three months ended Change (% / bps)

December 31,September June 30, March 31, December 2020 30, 2020 2020 31, Seq Yr/Yr 2020 2019

(Dollars in millions)

Mortgage rate lock commitments (fallout-adjusted) (1) (2)$12,000 $15,000 $13,800 $11,200 $8,200 (20) %47 %

Mortgage loans closed (1) $13,100 $14,400 $12,200 $8,600 $9,300 (9) %41 %

Net margin on mortgage rate lock commitments 1.93 % 2.31 %2.19 %0.80 %1.23 %(38) 70 (fallout-adjusted) (2)

Net gain on loan sales $232 $346 $303 $90 $101 (33) %N/M

Net return (loss) on mortgage servicing rights (MSR) $- $12 $(8) $6 $(3) N/M N/M

Gain on loan sales + net return on the MSR $232 $358 $295 $96 $98 (35) %N/M

Loans serviced (number of accounts - 000's) (3) 1,085 1,105 1,042 1,082 1,091 (2) %(1) %

Capitalized value of MSRs 0.86 % 0.85 %0.87 %0.95 %1.21 %1 (35)

N/M - Not meaningful



(1)Rounded to the nearest hundred million

Fallout-adjusted mortgage rate lock commitments are adjusted by a (2)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 loans serviced for Flagstar's own loan portfolio, serviced for others, and subserviced for others.

Noninterest Expense

Noninterest expense increased to $319 million for the fourth quarter, compared to $305 million for the third quarter. This increase was primarily due to a $7 million loss recognized on the early redemption of senior notes due July 15, 2021 which will settle in January, $3 million due to hiring in the mortgage and servicing business to expand capacity, and an additional $2 million was contributed to the Flagstar Foundation during the quarter to further the community in light of the pandemic and ongoing economic conditions.

Mortgage expenses were $155 million for the fourth quarter, an increase of $7 million compared to the prior quarter. The ratio of mortgage noninterest expense to closings - our mortgage expense ratio - was 1.18 percent an increase of 16 basis points quarter over quarter, primarily driven by efforts to expand capacity and a higher retail channel mix.

The Company's efficiency ratio was 61 percent for the fourth quarter, as compared to 48 percent for the third quarter, primarily driven higher due to the extraordinary levels of gain on sale margin in the third quarter.

Income Taxes

The fourth quarter provision for income taxes totaled $51 million, with an effective tax rate of 24.8 percent, compared to $73 million and an effective tax rate of 24.7 percent for the third quarter. Our effective tax rate remained flat primarily due to a non-recurring tax impact of $2 million from final sale of stock by a shareholder that formerly held more than 50 percent of our outstanding shares.

Asset Quality

Credit Quality Ratios

As of/Three Months Ended Change (% / bps)

DecemberSeptember 30,June March December 31, 2020 30, 31, 31, Seq Yr/Yr 2020 2020 2020 2019

(Dollars in millions)

Allowance for credit losses (2) $280 $280 $250 $ 152 $110 - %N/M

Credit reserves to LHFI 1.73 %1.70 % 1.69 %1.10 %0.91 %3 82

Credit reserves to LHFI excluding warehouse 3.20 %3.07 % 2.60 %1.54 %1.12 %13 208

Charge-offs, net of recoveries $2 $2 $3 $ 2 $3 - %(33)%

Total nonperforming LHFI and TDRs $57 $45 $33 $ 29 $26 27 %119 %

Net charge-offs to LHFI ratio (annualized) 0.04 %0.05 % 0.11 %0.08 %0.10 %(1) (6)

Ratio of nonperforming LHFI and TDRs to LHFI0.34 %0.28 % 0.22 %0.21 %0.21 %6 13



Net charge-offs/(recoveries) to LHFI ratio (annualized) by loan type (1):

Residential first mortgage 0.11 %0.07 % 0.26 %0.08 %0.08 %4 3

Home equity and other consumer 0.06 %0.23 % 0.28 %0.28 %0.49 %(17) (43)

Commercial real estate - %(0.01)% 0.01 %(0.01)%- %1 -

Commercial and industrial 0.21 %0.06 % 0.08 %0.09 %0.07 %15 14

N/M - Not meaningful

(1) Excludes loans carried under the fair value option.

(2) Includes the allowance for loan losses and the reserve on unfunded commitments.

The allowance for credit losses was $280 million and covered 1.73 percent of loans held-for-investment at December 31, 2020, a 3 basis point increase from September 30, 2020. Excluding warehouse loans, the allowance coverage ratio was 3.20 percent, a 13 basis point increase from September 30, 2020.

Net charge-offs in the fourth quarter 2020 remained low at $2 million, or 4 basis points of LHFI, compared to $2 million, or 5 basis points in the prior quarter.

Nonperforming loans were $57 million and our ratio of nonperforming loans to loans held-for-investment was 34 basis points at December 31, 2020, a 6 basis point increase compared to September 30, 2020. The increase was due to two commercial borrowers totaling $7 million in exposure that were placed on nonaccrual during the quarter. At December 31, 2020, early stage loan delinquencies totaled $36 million, or 22 basis points, of total loans, compared to $13 million, or 8 basis points, at September 30, 2020.

Capital

Capital Ratios (Bancorp) Change (% / bps)

December September June 30, March 31,December 31, 30, 2020 2020 31, Seq Yr/Yr 2020 2020 2019

Tier 1 leverage (to adj. avg. total 7.71 %8.04 %7.76 %8.09 %7.57 %(33) 14 assets)

Tier 1 common equity (to RWA) 9.15 %9.21 %9.11 %9.17 %9.32 %(6) (17)

Tier 1 capital (to RWA) 10.23 %10.31 %10.33 %10.52 %10.83 %(8) (60)

Total capital (to RWA) 11.89 %11.29 %11.32 %11.18 %11.52 %60 37

Tangible common equity to asset ratio (1)6.58 %6.90 %6.58 %6.25 %6.95 %(32) (37)

Tangible book value per share (1) $38.80 $35.60 $31.74 $29.52 $28.57 9 %36 %



(1) See Non-GAAP Reconciliation for further information.

The Company maintained a solid capital position with regulatory ratios above current regulatory quantitative guidelines for "well capitalized" institutions. The capital ratios are impacted by a 100 percent risk-weighting of the warehouse loan portfolio - the largest component of the Company's held-for-investment portfolio. Adjusting the risk-weighting of warehouse loans to 50 percent, because of the historically low level of losses from this loan portfolio and the fact that the portfolio is fully collateralized with assets that would receive a 50 percent risk weighting, the Company would have had a Tier 1 common equity ratio of 10.77 percent and a total risk-based capital ratio of 14.00 percent at December 31, 2020.

Importantly, tangible book value per share grew to $38.80, up $3.20 from last quarter and an increase of $10.23, or 36 percent, in 2020.

Earnings Conference Call

As previously announced, the Company's fourth quarter 2020 earnings call will be held Thursday, January 21, 2021 at 11 a.m. (ET).

To join the call, please dial (888) 204-4368 toll free or (856) 344-9299 and use passcode 3619451. Please call at least 10 minutes before the conference is scheduled to begin. A replay will be available for five business days by calling (888) 203-1112 toll free or (719) 457-0820, and using passcode 3619451.

The conference call will also be available as a live audiocast on the Investor Relations section of flagstar.com, where it will be archived and available for replay and download. The slide presentation accompanying the conference call will be posted on the site.

About Flagstar

Flagstar Bancorp, Inc. (NYSE: FBC) is a $31.0 billion savings and loan holding company headquartered in Troy, Mich. Flagstar Bank, FSB, provides commercial, small business, and consumer banking services through 158 branches in Michigan, Indiana, California, Wisconsin and Ohio. It also provides home loans through a wholesale network of brokers and correspondents in all 50 states, as well as 103 retail locations in 28 states, representing the combined retail branches of Flagstar and its Opes Advisors mortgage division. Flagstar is a leading national originator and servicer of mortgage and other consumer loans, handling payments and record keeping for $227 billion of loans representing almost 1.1 million borrowers. For more information, please visit flagstar.com.

Use of Non-GAAP Financial Measures

In addition to results presented in accordance with GAAP, this news release includes certain non-GAAP financial measures. The Company believes these non-GAAP financial measures provide additional information that is useful to investors in helping to understand the capital requirements Flagstar will face in the future and underlying performance and trends of Flagstar.

Non-GAAP financial measures have inherent limitations. Readers should be aware of these limitations and should be cautious with respect to the use of such measures. To compensate for these limitations, we use non-GAAP measures as comparative tools, together with GAAP measures, to assist in the evaluation of our operating performance or financial condition. Also, we ensure that these measures are calculated using the appropriate GAAP or regulatory components in their entirety and that they are computed in a manner intended to facilitate consistent period-to-period comparisons. Flagstar's method of calculating these non-GAAP measures may differ from methods used by other companies. These non-GAAP measures should not be considered in isolation or as a substitute for those financial measures prepared in accordance with GAAP or in-effect regulatory requirements.

Where non-GAAP financial measures are used, the most directly comparable GAAP or regulatory financial measure, as well as the reconciliation to the most directly comparable GAAP or regulatory financial measure, can be found in this news release. Additional discussion of the use of non-GAAP measures can also be found in conference call slides, the Form 8-K Current Report related to this news release and in periodic Flagstar reports filed with the U.S. Securities and Exchange Commission. These documents can all be found on the Company's website at flagstar.com.

Forward-Looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of Flagstar Bancorp, Inc.'s management and are subject to significant risks and uncertainties. The Company's actual results could differ materially from those described in the forward-looking statements depending upon various factors as described in periodic Flagstar reports filed with the U.S. Securities and Exchange Commission, which are available on the Company's website (flagstar.com) and on the Securities and Exchange Commission's website (sec.gov). The COVID-19 pandemic is adversely affecting us, our customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Other than as required under United States securities laws, Flagstar Bancorp does not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

Flagstar Bancorp, Inc. Consolidated Statements of Financial Condition (Dollars in millions) (Unaudited)



December SeptemberDecember 31, 30, 31, 2020 2020 2019

Assets

Cash $251 $194 $220

Interest-earning deposits 372 86 206

Total cash and cash equivalents 623 280 426

Investment securities available-for-sale 1,944 2,165 2,116

Investment securities held-to-maturity 377 440 598

Loans held-for-sale 7,098 5,372 5,258

Loans held-for-investment 16,227 16,476 12,129

Loans with government guarantees 2,516 2,500 736

Less: allowance for loan losses (252) (255) (107)

Total loans held-for-investment and loans with18,491 18,721 12,758 government guarantees, net

Mortgage servicing rights 329 323 291

Federal Home Loan Bank stock 377 377 303

Premises and equipment, net 392 410 416

Goodwill and intangible assets 157 160 170

Other assets 1,250 1,228 930

Total assets $31,038$29,476$23,266

Liabilities and Stockholders' Equity

Noninterest-bearing deposits $9,458 $9,429 $5,467

Interest-bearing deposits 10,515 10,516 9,679

Total deposits 19,973 19,945 15,146

Short-term Federal Home Loan Bank advances and3,900 2,226 4,165 other

Long-term Federal Home Loan Bank advances 1,200 1,200 650

Other long-term debt 641 493 496

GNMA repurchase options 1,851 1,783 70

Other liabilities 1,272 1,634 951

Total liabilities 28,837 27,281 21,478

Stockholders' Equity

Common stock 1 1 1

Additional paid in capital 1,346 1,493 1,483

Accumulated other comprehensive income 47 46 1

Retained earnings 807 655 303

Total stockholders' equity 2,201 2,195 1,788

Total liabilities and stockholders' equity $31,038$29,476$23,266

Flagstar Bancorp, Inc. Condensed Consolidated Statements of Operations (Dollars in millions, except per share data) (Unaudited)



Change compared to:

Three Months Ended 3Q20 4Q2019

December 31,September 30,June 30,March 31,December 31,Amount PercentAmount Percent 2020 2020 2020 2020 2019

Interest Income

Total interest income $212 $206 $201 $ 201 $ 213 $6 3 %$(1) - %

Total interest expense 23 26 33 53 61 (3) (12) %(38) (62) %

Net interest income 189 180 168 148 152 9 5 %37 24 %

Provision for credit losses 2 32 102 14 - (30) (94) %2 N/M

Net interest income after provision for credit losses187 148 66 134 152 39 26 %35 23 %

Noninterest Income

Net gain on loan sales 232 346 303 90 101 (114) (33) %131 N/M

Loan fees and charges 53 45 41 26 30 8 18 %23 77 %

Net return (loss) on the mortgage servicing rights - 12 (8) 6 (3) (12) N/M 3 N/M

Loan administration income 25 26 21 12 8 (1) (4) %17 N/M

Deposit fees and charges 8 8 7 9 10 - - %(2) (20) %

Other noninterest income 19 15 14 14 16 4 27 %3 19 %

Total noninterest income 337 452 378 157 162 (115) (25) %175 108 %

Noninterest Expense

Compensation and benefits 125 123 116 102 102 2 2 %23 23 %

Occupancy and equipment 44 47 44 41 43 (3) (6) %1 2 %

Commissions 70 72 61 29 35 (2) (3) %35 N/M

Loan processing expense 29 24 25 20 20 5 21 %9 45 %

Legal and professional expense 11 9 5 6 9 2 22 %2 22 %

Federal insurance premiums 5 6 7 6 6 (1) (17) %(1) (17) %

Intangible asset amortization 3 3 4 3 4 - - %(1) (25) %

Other noninterest expense 32 21 34 28 26 11 52 %6 23 %

Total noninterest expense 319 305 296 235 245 14 5 %74 30 %

Income before income taxes 205 295 148 56 69 (90) (31) %136 197 %

Provision for income taxes 51 73 32 10 11 (22) (30) %40 N/M

Net income $154 $222 $116 $ 46 $ 58 $(68) (31) %$96 166 %

Income per share

Basic $2.86 $3.90 $2.04 $ 0.80 $ 1.01 $(1.04)(27) %$1.85183 %

Diluted $2.83 $3.88 $2.03 $ 0.80 $ 1.00 $(1.05)(27) %$1.83183 %



Cash dividends declared $0.05 $0.05 $0.05 $ 0.05 $ 0.04 $- - %$0.0125 %

N/M - Not meaningful

Flagstar Bancorp, Inc. Condensed Consolidated Statements of Operations (Dollars in millions, except per share data) (Unaudited)



Twelve Months Ended Change

December 31,December 31,Amount Percent 2020 2019

Interest Income

Total interest income $819 $794 $25 3 %

Total interest expense 134 232 (98) (42) %

Net interest income 685 562 123 22 %

Provision for credit losses 149 18 131 N/M

Net interest income after provision for credit losses536 544 (8) (1) %

Noninterest Income

Net gain on loan sales 971 335 636 N/M

Loan fees and charges 165 100 65 65 %

Net return on the mortgage servicing rights 10 6 4 67 %

Loan administration income 84 30 54 N/M

Deposit fees and charges 32 38 (6) (16) %

Other noninterest income 63 101 (38) (38) %

Total noninterest income 1,325 610 715 117 %

Noninterest Expense

Compensation and benefits 466 377 89 24 %

Occupancy and equipment 176 161 15 9 %

Commissions 232 111 121 N/M

Loan processing expense 98 80 18 23 %

Legal and professional expense 31 27 4 15 %

Federal insurance premiums 24 20 4 20 %

Intangible asset amortization 13 15 (2) (13) %

Other noninterest expense 117 97 20 21 %

Total noninterest expense 1,157 888 269 30 %

Income before income taxes 704 266 438 165 %

Provision for income taxes 166 48 118 N/M

Net income $538 $218 $320 147 %

Income per share

Basic $9.59 $3.85 $5.74149 %

Diluted $9.52 $3.80 $5.72151 %



Cash dividends declared $0.20 $0.16 $0.0425 %

N/M - Not meaningful

Flagstar Bancorp, Inc. Summary of Selected Consolidated Financial and Statistical Data (Dollars in millions, except share data) (Unaudited)



Three Months Ended Twelve Months Ended

December September December December December 31, 2020 30, 31, 2019 31, 2020 31, 2019 2020

Selected Mortgage Statistics (1):

Mortgage rate lock commitments (fallout-adjusted) (2) $12,000 $15,000 $8,200 $52,000 $32,300

Mortgage loans closed $13,100 $14,400 $9,300 $48,300 $32,700

Mortgage loans sold and securitized $12,000 $14,500 $8,100 $46,900 $30,300

Selected Ratios:

Interest rate spread (3) 2.44 %2.44 %2.39 %2.40 %2.52 %

Net interest margin 2.78 %2.78 %2.91 %2.80 %3.05 %

Net margin on loans sold and securitized 1.92 %2.39 %1.24 %2.07 %1.10 %

Return on average assets 2.08 %3.15 %0.99 %2.00 %1.05 %

Adjusted return on average assets (4) (5) 2.08 %3.15 %0.99 %2.00 %0.96 %

Return on average common equity 27.58 %41.54 %12.69 %26.21 %12.84 %

Return on average tangible common equity (5) 30.13 %45.42 %14.76 %29.00 %15.15 %

Adjusted return on average tangible common equity (4) (5)30.13 %45.42 %14.76 %29.00 %13.87 %

Efficiency ratio 60.8 %48.3 %78.2 %57.6 %75.8 %

Common equity-to-assets ratio (average for the period) 7.54 %7.57 %7.83 %7.63 %8.20 %

Average Balances:

Average interest-earning assets $27,100 $25,738 $20,708 $24,431 $18,453

Average interest-bearing liabilities $13,782 $14,281 $14,208 $14,413 $13,130

Average stockholders' equity $2,235 $2,141 $1,803 $2,052 $1,695

(1) Rounded to nearest hundred million.

Fallout-adjusted mortgage rate lock commitments are adjusted by a(2) percentage of mortgage loans in the pipeline that are not expected to close based on previous historical experience and the level of interest rates.

Interest rate spread is the difference between rate of interest earned on(3) interest-earning assets and rate of interest paid on interest-bearing liabilities.

(4) See Non-GAAP Reconciliation for further information.

(5) Excludes goodwill, intangible assets and the associated amortization. See Non-GAAP Reconciliation for further information.

December 31,September December 31, 2020 30, 2019 2020

Selected Statistics:

Book value per common share $ 41.79 $ 38.41 $ 31.57

Tangible book value per share (1) $ 38.80 $ 35.60 $ 28.57

Number of common shares outstanding 52,656,067 57,150,470 56,631,236

Number of FTE employees 5,214 4,871 4,453

Number of bank branches 158 160 160

Ratio of nonperforming assets to total assets (2)0.21 %0.17 %0.15 %

Common equity-to-assets ratio 7.09 %7.45 %7.68 %

MSR Key Statistics and Ratios:

Weighted average service fee (basis points) 34.3 35.0 39.7

Capitalized value of mortgage servicing rights 0.86 %0.85 %1.21 %

(1) Excludes goodwill and intangibles. See Non-GAAP Reconciliation for further information.

(2) Ratio excludes LHFS.

Average Balances, Yields and Rates (Dollars in millions) (Unaudited)



Three Months Ended

December 31, 2020 September 30, 2020 December 31, 2019

Average InterestAnnualizedAverage InterestAnnualizedAverage InterestAnnualized Balance Yield/RateBalance Yield/RateBalance Yield/Rate

Interest-Earning Assets

Loans held-for-sale $5,672 $42 2.99% $5,602 $ 45 3.21% $5,199 $51 3.92%

Loans held-for-investment

Residential first mortgage 2,353 19 3.23% 2,584 21 3.24% 3,215 30 3.60%

Home equity 890 8 3.69% 951 9 3.77% 989 12 4.86%

Other 1,001 13 5.15% 950 13 5.28% 728 11 5.97%

Total consumer loans 4,244 40 3.78% 4,485 43 3.78% 4,932 53 4.20%

Commercial real estate 3,064 27 3.40% 3,007 27 3.47% 2,763 34 4.91%

Commercial and industrial 1,447 13 3.55% 1,650 14 3.25% 1,726 21 4.80%

Warehouse lending 6,948 71 3.99% 5,697 56 3.92% 2,747 33 4.61%

Total commercial loans 11,459 111 3.78% 10,354 97 3.68% 7,236 88 4.77%

Total loans held-for-investment 15,703 151 3.78% 14,839 140 3.71% 12,168 141 4.54%

Loans with government guarantees 2,478 5 0.73% 2,122 5 0.89% 678 4 2.16%

Investment securities 2,493 14 2.27% 2,807 16 2.29% 2,511 16 2.49%

Interest-earning deposits 754 - 0.11% 368 - 0.11% 152 1 2.26%

Total interest-earning assets 27,100 $212 3.09% 25,738 $ 206 3.16% 20,708 $213 4.04%

Other assets 2,537 2,539 2,328

Total assets $29,637 $28,277 $23,036

Interest-Bearing Liabilities

Retail deposits

Demand deposits $1,842 $- 0.07% $1,824 $ - 0.09% $1,448 $3 0.70%

Savings deposits 3,847 2 0.20% 3,675 3 0.34% 3,335 10 1.19%

Money market deposits 693 - 0.07% 733 - 0.09% 700 - 0.35%

Certificates of deposit 1,415 5 1.18% 1,672 8 1.62% 2,459 15 2.37%

Total retail deposits 7,797 7 0.33% 7,904 11 0.53% 7,942 28 1.39%

Government deposits 1,579 1 0.26% 1,403 1 0.35% 1,192 4 1.39%

Wholesale deposits and other 1,010 4 1.69% 953 4 1.77% 666 4 2.36%

Total interest-bearing deposits 10,386 12 0.46% 10,260 16 0.62% 9,800 36 1.46%

Short-term FHLB advances and other 1,598 1 0.20% 2,328 2 0.20% 3,262 15 1.74%

Long-term FHLB advances 1,200 3 1.03% 1,200 3 1.03% 650 3 1.43%

Other long-term debt 598 7 4.47% 493 5 4.52% 496 7 5.45%

Total interest-bearing liabilities 13,782 23 0.65% 14,281 26 0.72% 14,208 61 1.65%

Noninterest-bearing deposits

Retail deposits and other 2,155 1,954 1,332

Custodial deposits (1) 8,527 7,347 4,772

Total noninterest-bearing deposits 10,682 9,301 6,104

Other liabilities 2,938 2,554 921

Stockholders' equity 2,235 2,141 1,803

Total liabilities and stockholders' equity $29,637 $28,277 $23,036

Net interest-earning assets $13,318 $11,457 $6,500

Net interest income $189 $ 180 $152

Interest rate spread (2) 2.44% 2.44% 2.39%

Net interest margin (3) 2.78% 2.78% 2.91%

Ratio of average interest-earning assets to interest-bearing 196.6 % 180.2 % 145.8 %liabilities

Total average deposits $21,068 $19,561 $15,904



Approximately 80 percent of custodial deposits from loans subserviced which(1) pay interest is recognized as an offset in net loan administration income.

Interest rate spread is the difference between rate of interest earned on(2) interest-earning assets and rate of interest paid on interest-bearing liabilities.

(3) Net interest margin is net interest income divided by average interest-earning assets.

Average Balances, Yields and Rates (Dollars in millions) (Unaudited)



Twelve Months Ended,

December 31, 2020 December 31, 2019

Average InterestAnnualizedAverage InterestAnnualized Balance Yield/RateBalance Yield/Rate

Interest-Earning Assets

Loans held-for-sale $5,542 $184 3.33 % $3,952 $170 4.30 %

Loans held-for-investment

Residential first mortgage 2,704 92 3.36 % 3,173 115 3.61 %

Home equity 965 39 4.01 % 871 46 5.31 %

Other 912 49 5.38 % 566 36 6.33 %

Total consumer loans 4,581 180 3.90 % 4,610 197 4.26 %

Commercial real estate 3,030 116 3.77 % 2,502 136 5.38 %

Commercial and industrial 1,692 63 3.65 % 1,708 88 5.10 %

Warehouse lending 4,694 190 3.98 % 2,112 107 4.99 %

Total commercial loans 9,416 369 3.86 % 6,322 331 5.17 %

Total loans held-for-investment 13,997 549 3.87 % 10,932 528 4.79 %

Loans with government guarantees 1,571 15 1.04 % 553 15 2.66 %

Investment securities 2,943 70 2.37 % 2,845 77 2.71 %

Interest-earning deposits 378 1 0.33 % 171 4 2.35 %

Total interest-earning assets $24,431 $819 3.33 % $18,453 $794 4.28 %

Other assets 2,477 2,221

Total assets $26,908 $20,674

Interest-Bearing Liabilities

Retail deposits

Demand deposits $1,763 $6 0.27 % $1,345 $11 0.77 %

Savings deposits 3,597 19 0.52 % 3,220 36 1.13 %

Money market deposits 707 1 0.15 % 736 2 0.32 %

Certificates of deposit 1,831 32 1.83 % 2,536 59 2.31 %

Total retail deposits 7,898 58 0.73 % 7,837 108 1.37 %

Government deposits 1,301 7 0.56 % 1,186 17 1.46 %

Wholesale deposits and other 821 16 1.94 % 554 13 2.36 %

Total interest-bearing deposits 10,020 81 0.81 % 9,577 138 1.44 %

Short-term FHLB advances and other 2,807 16 0.58 % 2,633 59 2.23 %

Long-term FHLB advances 1,066 12 1.10 % 425 7 1.59 %

Other long-term debt 520 25 4.80 % 495 28 5.65 %

Total interest-bearing liabilities 14,413 134 0.93 % 13,130 232 1.76 %

Noninterest-bearing deposits

Retail deposits and other 1,799 1,291

Custodial deposits (1) 6,725 3,839

Total noninterest-bearing deposits 8,524 5,130

Other liabilities 1,919 719

Stockholders' equity 2,052 1,695

Total liabilities and stockholders' equity $26,908 $20,674

Net interest-earning assets $10,018 $5,323

Net interest income $685 $562

Interest rate spread (2) 2.40 % 2.52 %

Net interest margin (3) 2.80 % 3.05 %

Ratio of average interest-earning assets to interest-bearing 169.5 % 140.5 % liabilities

Total average deposits 18,544 14,708

Approximately 80 percent of custodial deposits from loans subserviced which(1) pay interest is recognized as an offset in net loan administration income.

Interest rate spread is the difference between rate of interest earned on(2) interest-earning assets and rate of interest paid on interest-bearing liabilities.

(3) Net interest margin is net interest income divided by average interest-earning assets.

Earnings Per Share (Dollars in millions, except share data) (Unaudited)

Three Months Ended Twelve Months Ended

December September December 31, December December 31, 30 2019 31, 31, 2019 2020 2020 2020

Net Income $154 $222 $ 58 $538 $ 218

Weighted average common shares outstanding53,912,58457,032,74656,513,890 56,094,54256,584,238

Stock-based awards 431,382 347,063 684,844 411,271 654,740

Weighted average diluted common shares 54,343,96657,379,80957,198,734 56,505,81357,238,978

Basic earnings per common share $2.86 $3.90 $ 1.01 $9.59 $ 3.85

Stock-based awards (0.03) (0.02) (0.01) (0.07) (0.05)

Diluted earnings per common share $2.83 $3.88 $ 1.00 $9.52 $ 3.80

Regulatory Capital - Bancorp (Dollars in millions) (Unaudited)



December 31, 2020September 30, December 31, 2019 2020

Amount Ratio Amount Ratio Amount Ratio

Tier 1 leverage (to adjusted avg. total $2,270 7.71 %$2,256 8.04 %$1,826 8.00 %assets)

Total adjusted avg. total asset base $29,444 $28,069 $22,830

Tier 1 common equity (to risk weighted assets)$2,030 9.15 %$2,016 9.21 %$1,586 9.62 %

Tier 1 capital (to risk weighted assets) $2,270 10.23%$2,256 10.31%$1,826 11.07%

Total capital (to risk weighted assets) $2,638 11.89%$2,471 11.29%$1,936 11.74%

Risk-weighted asset base $22,190 $21,882 $16,493

Regulatory Capital - Bank (Dollars in millions) (Unaudited)



December 31, September 30, December 31, 2019 2020 2020

Amount Ratio Amount Ratio Amount Ratio

Tier 1 leverage (to adjusted avg. total $2,3908.12 %$2,212 7.89 %$1,752 7.71 %assets)

Total adjusted avg. total asset base 29,437 $28,051 22,727

Tier 1 common equity (to risk weighted assets)$2,39010.77%$2,212 10.11%$1,752 11.04%

Tier 1 capital (to risk weighted assets) $2,39010.77%$2,212 10.11%$1,752 11.04%

Total capital (to risk weighted assets) $2,60811.75%$2,427 11.09%$1,862 11.73%

Risk-weighted asset base 22,194 $21,882 $15,873

Loans Serviced (Dollars in millions) (Unaudited)



December 31, 2020 September 30, 2020 December 31, 2019

Unpaid Unpaid Unpaid Principal Number of Principal Number of Principal Number of Balance accounts Balance accounts Balance accounts (1) (1) (1)

Subserviced for others (2)$178,606867,799 $180,981893,559 $194,638918,662

Serviced for others (3) 38,026 151,081 37,908 148,868 24,003 105,469

Serviced for own loan 10,079 66,519 8,469 62,486 9,536 66,526 portfolio (4)

Total loans serviced $226,7111,085,399$227,3581,104,913$228,1771,090,657

(1) UPB, net of write downs, does not include premiums or discounts.

Loans subserviced for a fee for non-Flagstar owned loans or MSRs. Includes(2) temporary short-term subservicing performed as a result of sales of servicing-released MSRs.

(3) Loans for which Flagstar owns the MSR.

Includes LHFI (residential first mortgage, home equity and other consumer),(4) LHFS (residential first mortgage), loans with government guarantees (residential first mortgage), and repossessed assets.

Loans Held-for-Investment (Dollars in millions) (Unaudited)



December 31, 2020September 30, December 31, 2019 2020

Consumer loans

Residential first mortgage $2,266 14.0 %$2,472 15.0 %$3,154 26.0 %

Home equity 856 5.3 %924 5.6 %1,024 8.4 %

Other 1,004 6.1 %973 5.9 %729 6.0 %

Total consumer loans 4,126 25.4 %4,369 26.5 %4,907 40.4 %

Commercial loans

Commercial real estate 3,061 18.9 %2,996 18.2 %2,828 23.3 %

Commercial and industrial 1,382 8.5 %1,520 9.2 %1,634 13.5 %

Warehouse lending 7,658 47.2 %7,591 46.1 %2,760 22.8 %

Total commercial loans 12,101 74.6 %12,107 73.5 %7,222 59.6 %

Total loans held-for-investment$16,227100.0%$16,476100.0%$12,129100.0%

Other Consumer Loans Held-for-Investment (Dollars in millions) (Unaudited)



December 31, September 30, December 31, 2020 2020 2019

Indirect Lending $713 71.0 %$71073.0 %$578 79.3 %

Point of Sale 211 21.0 %202 20.8 %63 8.6 %

Other 80 8.0 %61 6.3 %88 12.1 %

Total other consumer loans$1,004100.0%$973100.0 %$729 100.0%

Allowance for Credit Losses (Dollars in millions) (Unaudited)



December 31, 2020September 30, 2020December 31, 2019

Residential first mortgage $ 49 $ 52 $ 22

Home equity 25 29 14

Other 39 38 6

Total consumer loans 113 119 42

Commercial real estate 84 89 38

Commercial and industrial 51 42 22

Warehouse lending 4 5 5

Total commercial loans 139 136 65

Allowance for loan losses 252 255 107

Reserve for unfunded commitments28 25 3

Allowance for credit losses $ 280 $ 280 $ 110

Allowance for Credit Losses (Dollars in millions) (Unaudited)



Three Months Ended December 31, 2020

Residential CommercialCommercial Total First Home Other Real and Warehouse LHFI Unfunded Mortgage EquityConsumerEstate IndustrialLending PortfolioCommitments (1)

Beginning balance $ 52 $29 $ 38 $ 89 $ 42 $ 5 $255 $ 25

Provision (benefit) for credit losses:

Loan volume (2) (2) 1 1 (2) - (4) 3

Economic forecast (2) (6) (6) (2) - - (1) (15) -

Credit (3) (1) (2) (4) - 8 - 1 -

Qualitative factor adjustments (4) 6 5 6 (6) 3 - 14 -

Charge-offs (1) - (1) - (1) - (3) -

Provision for charge-offs 1 - 1 - 1 - 3 -

Recoveries - 1 - - - - 1 -

Ending allowance balance $ 49 $25 $ 39 $ 84 $ 51 $ 4 $252 $ 28

(1) Excludes loans carried under the fair value option.

(2) Includes changes in the lifetime loss rate based on current economic forecasts as compared to forecasts used in the prior quarter.

Includes changes in the probability of default and severity of default(3) based on current borrower and guarantor characteristics, as well as individually evaluated reserves.

(4) Includes $7 million of unallocated reserves attributed to various portfolios for presentation purposes.

Twelve Months Ended December 31, 2020

Residential CommercialCommercial Total First Home Other Real and Warehouse LHFI Unfunded Mortgage EquityConsumerEstate IndustrialLending PortfolioCommitments (1)

(Dollars in millions)

Beginning balance ALLL $ 22 $14 $ 6 $ 38 $ 22 $ 5 $107 $ 3

Impact of adopting ASC 326 25 12 10 (14) (6) (4) 23 7

Beginning allowance balance 47 26 16 24 16 1 130 10

Provision (benefit) for credit losses:

Loan volume (10) (4) 9 3 (3) 1 (4) 7

Economic forecast (2) 5 (6) 3 15 (3) (1) 13 11

Credit (3) (5) (3) (2) 23 20 - 33 -

Qualitative factor adjustments (4) 12 8 11 19 21 3 74 -

Charge-offs (6) (3) (5) - (1) - (15) -

Provision for charge-offs 6 3 5 - 1 - 15 -

Recoveries - 4 2 - - - 6 -

Ending allowance balance $ 49 $25 $ 39 $ 84 $ 51 $ 4 $252 $ 28

(1) Excludes loans carried under the fair value option.

(2) Includes changes in the lifetime loss rate based on current economic forecasts as compared to forecasts used in the prior quarter.

Includes changes in the probability of default and severity of default(3) based on current borrower and guarantor characteristics, as well as individually evaluated reserves.

(4) Includes $7 million of unallocated reserves attributed to various portfolios for presentation purposes.

Nonperforming Loans and Assets (Dollars in millions) (Unaudited)



December 31,September 30,December 31, 2020 2020 2019

Nonperforming LHFI $46 $36 $16

Nonperforming TDRs 5 4 3

Nonperforming TDRs at inception but6 5 7 performing for less than six months

Total nonperforming LHFI and TDRs 57 45 26 (1)

Other nonperforming assets, net 8 6 10

LHFS 9 6 5

Total nonperforming assets $74 $57 $41



Ratio of nonperforming assets to 0.21 %0.17 %0.15 %total assets (2)

Ratio of nonperforming LHFI and 0.34 %0.28 %0.21 %TDRs to LHFI

Ratio of nonperforming assets to 0.40 %0.31 %0.30 %LHFI and repossessed assets (2)

(1) Includes less than 90 day past due performing loans placed on nonaccrual. Interest is not being accrued on these loans.

(2) Ratio excludes LHFS.

Asset Quality - Loans Held-for-Investment (Dollars in millions) (Unaudited)



30-59 Days 60-89 DaysGreater thanTotal Total Past Due Past Due 90 days (1) Past DueLHFI

December 31, 2020

Consumer loans $ 9 $ 6 $ 38 $ 53 $4,126

Commercial loans 21 - 17 38 12,101

Total loans $ 30 $ 6 $ 55 $ 91 $16,227

September 30, 2020

Consumer loans $ 9 $ 4 $ 36 $ 49 $4,369

Commercial loans - - 10 10 12,107

Total loans $ 9 $ 4 $ 46 $ 59 $16,476

December 31, 2019

Consumer loans $ 9 $ 5 $ 26 $ 40 $4,907

Commercial loans - - - - 7,222

Total loans $ 9 $ 5 $ 26 $ 40 $12,129

(1) Includes performing nonaccrual loans that are less than 90 days delinquent and for which interest cannot be accrued.

Troubled Debt Restructurings (Dollars in millions) (Unaudited)



TDRs

PerformingNonperformingTotal

December 31, 2020

Consumer loans $31 $10 $41

Commercial loans 5 - 5

Total TDR loans $36 $10 $46

September 30, 2020

Consumer loans $34 $9 $43

Commercial loans 5 - 5

Total TDR loans $39 $9 $48

December 31, 2019

Consumer loans $38 $10 $48

Total TDR loans $38 $10 $48

Non-GAAP Reconciliation

(Unaudited)

In addition to analyzing the Company's results on a reported basis, managementreviews the Company's results and the results on an adjusted basis. Thenon-GAAP measures presented in the tables below reflect the adjustments of thereported U.S.GAAP results for significant items that management does notbelieve are reflective of the Company's current and ongoing operations. The DOJbenefit and loans with government guarantees that have not been repurchased anddon't accrue interest are not reflective of our ongoing operations and,therefore, have been excluded from our U.S. GAAP results. The Company believesthat tangible book value per share, tangible common equity to assets ratio,return on average tangible common equity, adjusted return on average tangiblecommon equity, adjusted return on average assets, adjusted HFI loan-to-depositratio and adjusted net interest margin provide a meaningful representation ofits operating performance on an ongoing basis.

The following tables provide a reconciliation of non-GAAP financial measures.

Tangible book value per share and tangible common equity to assets ratio.



December 31,September June 30, March 31, December 31, 2020 30, 2020 2020 2019 2020

(Dollars in millions, except share data)

Total stockholders' equity $ 2,201 $ 2,195 $ 1,971 $ 1,842 $ 1,788

Less: Goodwill and intangible assets 157 160 164 167 170

Tangible book value $ 2,044 $ 2,035 $ 1,807 $ 1,675 $ 1,618



Number of common shares outstanding 52,656,067 57,150,470 56,943,979 56,729,789 56,631,236

Tangible book value per share $ 38.80 $ 35.60 $ 31.74 $ 29.52 $ 28.57



Total assets $ 31,038 $ 29,476 $ 27,468 $ 26,805 $ 23,266

Tangible common equity to assets ratio6.58 %6.90 %6.58 %6.25 %6.95 %

Adjusted return on average common equity, adjusted return on average tangible common equity and adjusted return on average assets.



Three Months Ended Twelve Months Ended

December September December December December 31, 2020 30, 2020 31, 2019 31, 2020 31, 2019

(Dollars in millions)

Net income $154 $116 $58 $538 $218

Add: Intangible asset amortization, net of 2 3 3 10 12 tax

Tangible net income $156 $119 $61 $548 $230



Total average equity $2,235 $1,977 $1,803 $2,052 $1,695

Less: Average goodwill and intangible assets159 165 172 164 179

Total tangible average equity $2,076 $1,812 $1,631 $1,888 $1,516



Return on average tangible common equity 30.13 %26.16 %14.76 %29.00 %15.15 %

Adjustment to remove DOJ adjustment - %- %- %- %(1.28) %

Adjusted return on average tangible common 30.13 %26.16 %14.76 %29.00 %13.87 %equity



Return on average assets 2.08 %1.77 %0.99 %2.00 %1.05 %

Adjustment to remove DOJ adjustment - %- %- %- %(0.09) %

Adjusted return on average assets 2.08 %1.77 %0.99 %2.00 %0.96 %

Adjusted HFI loan-to-deposit ratio.



December September June 30, March 31, December 31, 30, 2020 2020 31, 2020 2020 2019

(Dollars in millions)

Average LHFI $15,703 $14,839 $13,596 $11,823 $12,168

Less: Average warehouse loans 6,948 5,697 3,785 2,310 2,747

Adjusted average LHFI $8,755 $9,142 $9,811 $9,513 $9,421



Average deposits $21,068 $19,561 $17,715 $15,795 $15,904

Less: Average custodial deposits 8,527 7,347 6,223 4,776 4,772

Adjusted average deposits $12,541 $12,214 $11,492 $11,019 $11,132



HFI loan-to-deposit ratio 74.5 %75.9 %76.7 %74.9 %76.5 %

Adjusted HFI loan-to-deposit ratio69.8 %74.8 %85.4 %86.3 %84.6 %

Adjusted net interest margin.



Three Months Ended

DecemberSeptember 30,June March 31,December 31, 20202020 30, 2020 31, 2019 2020

Net interest margin 2.78 %2.78% 2.86%2.81 % 2.91 %

Adjustment to LGG loans available for repurchase0.20 %0.16% 0.02%- % - %

Adjusted net interest margin 2.98 %2.94% 2.88%2.81 % 2.91 %

For more information, contact: Kenneth SchellenbergFBCInvestorRelations@flagstar.com(248) 312-5741

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SOURCE Flagstar Bancorp, Inc.