Flagstar Bancorp reports earnings for second quarter
Flagstar Bancorp Inc. (NYSE: FBC), the holding company for Flagstar Bank FSB, recently reported a second quarter 2009 net loss applicable to common stockholders of $76.6 million, or $0.32 per share (diluted), as compared to a net loss of $67.4 million, or $0.76 per share (diluted) on a linked quarter basis. Net earnings were $15.7 million, or $0.22 per share (diluted), in the second quarter 2008. For the six months ended June 30, 2009, Flagstar's net loss applicable to common stockholders was $144.0 million, or $0.88 per share (diluted), as compared to net earnings of $5.1 million, or $0.08 per share (diluted) for the same period 2008.
On a pre-tax, pre-credit cost basis, earnings before preferred dividends were $78.9 million in the second quarter 2009, as compared to earnings of $144.7 million in the first quarter 2009. For the second quarter 2009, as compared to the first quarter 2009, residential loan originations decreased to $9.3 billion from $9.5 billion, loan sales increased to $9.9 billion from $7.7 billion, and the margin on loan sales decreased to 1.06 percent from 2.54 percent, respectively. For the six-month periods ended June 30, 2009 and 2008, residential loan originations increased to $18.8 billion from $16.2 billion, loan sales increased to $17.6 billion from $15.3 billion and the margin on loan sales increased to 1.71 percent from 0.70 percent, respectively.
"Although it is always disappointing to lose money, we were able to continue to generate positive income on an operating basis and are encouraged by the improvement in mortgage delinquency trends that we experienced towards the end of the quarter," said Mark T. Hammond, chief executive officer.