Flagstar Bancorp Q4 Profit Falls, But Beats Estimates

(RTTNews) - Flagstar Bancorp, Inc. (FBC), the holding company of Flagstar Bank, on Wednesday posted a rise in net income for the fourth quarter, amidst a decline in interest and non-interest income. In addition, the company's adjusted earnings beat the Street view.

For the quarter ended in December, the Michigan-headquartered lender posted a net income of $85 million or $1.60 per share, compared with $154 million or $2.83 per share, reported for the same period last year.

Excluding items, the financial company registered an income of $90 million or $1.69 per share. Two analysts, on average, polled by Thomson-Reuters were estimating the firm to report earnings per share at $1.62. Analysts' estimates typically exclude one-time items.

Following lower gain on sale, partially offset by higher net return on mortgage servicing rights and loan administration income, the company's non-interest income fell to $202 million, when compared with $332 million, recorded for the previous year quarter.

Flagstar also posted a decrease in net interest income for the quarter at $181 million as against $189 million, owing to a fall in average earning assets driven primarily by seasonal declines in loans held-for-sale and warehouse loans.

Provision for credit loss rose to $17 million for the final quarter of 2021, from $2 million, reported for the last quarter of 2020.