Flagstar Issues Revised 2011 Results Based on Completed Analysis; Results Revised to Reflect Increase of $29.1 Million In Net Loss
Flagstar Bancorp, Inc. (NYSE: FBC), the holding company for Flagstar Bank, FSB, today completed its analysis of the impact to its fourth quarter and full year 2011 financial results arising from the agreement the Bank announced with the U.S. Department of Justice on February 24, 2012. This agreement was described in the Company's earlier press release issued on February 24, 2012. Based on its analysis of the agreement, the Company has revised its fourth quarter and full year 2011 financial results to reflect an increase of $29.1 million, or $(0.05) per share in net loss applicable to common shareholders.
As a result, for the three months ended December 31, 2011, net loss applicable to common shareholders increased to $(74.0) million, or $(0.13) per diluted share, as compared to the previously reported $(44.9) million, or $(0.08) per diluted share. For the year ended December 31, 2011, net loss applicable to common shareholders increased to $(194.7) million, or $(0.35) per diluted share, as compared to the previously reported $(165.6) million, or $(0.30) per diluted share. The Company expects to review its fair value analysis of the settlement amount quarterly going forward, as required by accounting rules, and make further adjustments as necessary. At December 31, 2011 the Bank remained well-capitalized with a revised Tier 1 capital ratio of 8.98 percent, and based on profitable operations during January 2012 and a slightly higher balance sheet at January 31, 2012, expects a January 31, 2012 Tier 1 capital ratio of 9.18 percent.
"Our revised 2011 financial results from the agreement are well within the range initially contemplated in our announcement last Friday," said Joseph P. Campanelli, Chairman of the Board, President and CEO. "We are pleased to have this matter resolved in a manner that allows us to be a leader in originating loans as we continue our partnership with FHA and HUD. We remain well-capitalized, with strong liquidity and a committed management team that is executing on a solid business model intended to move the Company to profitability in 2012."
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