ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Michigan | 38-3150651 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
5151 Corporate Drive, | Troy, | Michigan | 48098-2639 | |||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $0.01 per share | FBC | New York Stock Exchange |
Large Accelerated Filer | Accelerated Filer | Smaller Reporting Company | |||||||||||||||||||||
Non-Accelerated Filer | Emerging growth company |
ITEM 1. | ||||||||
ITEM 1A. | ||||||||
ITEM 1B. | ||||||||
ITEM 2. | ||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
ITEM 5. | ||||||||
ITEM 6. | ||||||||
ITEM 7. | ||||||||
ITEM 7A. | ||||||||
ITEM 8. | ||||||||
ITEM 9. | ||||||||
ITEM 9A. | ||||||||
ITEM 9B. | ||||||||
ITEM 10. | ||||||||
ITEM 11. | ||||||||
ITEM 12. | ||||||||
ITEM 13. | ||||||||
ITEM 14. | ||||||||
ITEM 15. | ||||||||
ITEM 16. |
Term | Definition | Term | Definition | |||||||||||||||||
Allowance for Credit Losses | HELOAN | Home Equity Loans | ||||||||||||||||||
AFS | Available for Sale | |||||||||||||||||||
Agencies | Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, and Government National Mortgage Association, Collectively | |||||||||||||||||||
ALCO | Asset Liability Committee | Home | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
Home Equity | Second Mortgages, HELOANs, HELOCs | |||||||||||||||||||
ASU | Accounting Standards Update | HPI | Housing Price Index | |||||||||||||||||
Basel III | Basel Committee on Banking Supervision Third Basel Accord | |||||||||||||||||||
BSA | Bank Secrecy Act | |||||||||||||||||||
C&I | Commercial and Industrial | LHFI | Loans Held-for-Investment | |||||||||||||||||
CAMELS | Capital, Asset Quality, Management, Earnings, Liquidity and Sensitivity | LHFS | Loans Held-for-Sale | |||||||||||||||||
CDARS | Certificates of Deposit Account Registry Service | LIBOR | London Interbank Offered Rate | |||||||||||||||||
CD | Certificates of Deposit | LTV | Loan-to-Value Ratio | |||||||||||||||||
Current Expected Credit Losses | Management | Flagstar Bancorp’s Management | ||||||||||||||||||
CET1 | Common Equity Tier 1 | |||||||||||||||||||
CLTV | Combined | |||||||||||||||||||
Management's Discussion and Analysis | ||||||||||||||||||||
Common Shares | MP Thrift | MP Thrift Investments, L.P. | ||||||||||||||||||
CRE | Commercial Real Estate | MSR | Mortgage Servicing Rights | |||||||||||||||||
CFPB | Consumer Financial Protection Bureau | |||||||||||||||||||
Deposit Beta | The change in the annualized cost of our deposits, divided by the change in the Federal Reserve discount rate | N/ | Not | |||||||||||||||||
DIF | Deposit Insurance Fund | NASDAQ | National Association of Securities Dealers Automated Quotations | |||||||||||||||||
DOJ | United States Department of Justice | Nonperforming Loan | ||||||||||||||||||
DOJ Liability | 2012 settlement Agreement with the Department of Justice | NYSE | New York Stock Exchange | |||||||||||||||||
DTA | Deferred Tax Asset | OCC | Office of the Comptroller of the Currency | |||||||||||||||||
EVE | Economic Value of Equity | OCI | Other Comprehensive Income (Loss) | |||||||||||||||||
ExLTIP | Executive Long-Term Incentive Program | |||||||||||||||||||
Fannie Mae | Federal National Mortgage Association | QTL | Qualified Thrift Lending | |||||||||||||||||
FASB | Financial Accounting Standards Board | Regulatory Agencies | Board of Governors of the Federal Reserve, Office of the Comptroller of the Currency, U.S. Department of the Treasury, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, Securities and Exchange Commission | |||||||||||||||||
FBC | Flagstar Bancorp | |||||||||||||||||||
FDIC | Federal Deposit Insurance Corporation | |||||||||||||||||||
Federal Reserve | Board of Governors of the Federal Reserve System | Residential Mortgage-Backed Securities | ||||||||||||||||||
FHA | Federal Housing Administration | RSU | Restricted Stock Unit | |||||||||||||||||
FHFA | Federal Housing Finance Agency | RWA | Risk Weighted Assets | |||||||||||||||||
Federal | SEC | Securities and Exchange Commission | ||||||||||||||||||
Shared National Credit | ||||||||||||||||||||
FOAL | Fallout-Adjusted Locks | SOFR | Secured Overnight Financing Rate | |||||||||||||||||
Federal Reserve Bank | ||||||||||||||||||||
Freddie Mac | Federal Home Loan Mortgage Corporation | Trouble Debt Restructuring | ||||||||||||||||||
FTE | Full Time Equivalent | TILA-RESPA | Truth in Lending Act-Real Estate Settlement Procedures Act | |||||||||||||||||
Generally Accepted Accounting Principles | UPB | Unpaid Principal Balance | ||||||||||||||||||
Ginnie Mae | Government National Mortgage Association | U.S. Treasury | United States Department of Treasury | |||||||||||||||||
Gramm-Leach Bliley Act | VIE | Variable Interest Entity | ||||||||||||||||||
GNMA | Government National Mortgage Association | |||||||||||||||||||
eXtensible Business Reporting Language |
ITEM 1. | BUSINESS |
As of December 31, 2020 | |||||
Loan Exposure | |||||
(Dollars in millions) | |||||
Retail | $ | 298 | |||
Hotel | $ | 279 | |||
Leisure & Entertainment | $ | 148 | |||
Senior Housing | $ | 145 | |||
Automotive | $ | 79 | |||
Healthcare | $ | 22 |
Owned | Leased | Total | Free-Standing Office Building | In-Store Banking Center | Buildings with Other Tenants | Total | ||||||||||||||||||||
Michigan | 87 | 27 | 114 | 90 | 2 | 22 | 114 | |||||||||||||||||||
Indiana | 27 | 5 | 32 | 31 | — | 1 | 32 | |||||||||||||||||||
California | 8 | — | 8 | 8 | — | — | 8 | |||||||||||||||||||
Wisconsin | 3 | — | 3 | 3 | — | — | 3 | |||||||||||||||||||
Ohio | 1 | — | 1 | 1 | — | — | 1 | |||||||||||||||||||
Total | 126 | 32 | 158 | 133 | 2 | 23 | 158 |
Owned | Leased | Total | Free-Standing Office Building | In-Store Banking Center | Buildings with Other Tenants | Total | |||||||||||||||
Michigan | 87 | 27 | 114 | 90 | 2 | 22 | 114 | ||||||||||||||
Indiana | 27 | 6 | 33 | 31 | — | 2 | 33 | ||||||||||||||
California | 8 | — | 8 | 8 | — | — | 8 | ||||||||||||||
Wisconsin | 3 | 1 | 4 | 3 | — | 1 | 4 | ||||||||||||||
Ohio | 1 | — | 1 | 1 | — | — | 1 | ||||||||||||||
Total | 126 | 34 | 160 | 133 | 2 | 25 | 160 |
ITEM 5. | MARKET FOR THE REGISTRANT’S COMMON EQUITY, |
Period | Total Number of Shares Purchased | Average Price per Share | Total Number of Shares Purchases as Part of Publicly Announced Plan | Maximum Number of Shares that May Yet Be Purchased Under the Plan | |||||||||
October 1, 2018 to October 31, 2018 | — | — | — | — | |||||||||
November 1, 2018 to November 30, 2018 | — | — | — | — | |||||||||
December 1, 2018 to December 31, 2018 | 4,709 | $ | 31.51 | 4,709 | 28,919 |
Period | Total Number of Shares Purchased | Average Price per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan (1) | Maximum Number of Shares that May Yet be Purchased Under the Plan | ||||||||||
October 1, 2020 to October 31, 2020 | 4,587,647 | $ | 32.6965 | 4,587,647 | — | |||||||||
November 1, 2020 to November 30, 2020 | — | — | — | — | ||||||||||
December 1, 2020 to December 31, 2020 | — | — | — | — |
Flagstar Bancorp | Nasdaq Financial | Nasdaq Bank | S&P Small Cap 600 | Russell 2000 | |||||||||||||
12/31/2015 | 100 | 100 | 100 | 100 | 100 | ||||||||||||
12/31/2016 | 117 | 123 | 135 | 125 | 119 | ||||||||||||
12/31/2017 | 162 | 139 | 140 | 139 | 135 | ||||||||||||
12/31/2018 | 114 | 125 | 115 | 126 | 119 | ||||||||||||
12/31/2019 | 166 | 157 | 139 | 152 | 147 | ||||||||||||
12/31/2020 | 176 | 159 | 124 | 167 | 174 |
Flagstar Bancorp | Nasdaq Financial | Nasdaq Bank | S&P Small Cap 600 | Russell 2000 | |||||
December 31, 2013 | 100 | 100 | 100 | 100 | 100 | ||||
December 31, 2014 | 80 | 102 | 103 | 104 | 104 | ||||
December 31, 2015 | 118 | 106 | 110 | 101 | 98 | ||||
December 31, 2016 | 137 | 130 | 148 | 126 | 117 | ||||
December 31, 2017 | 191 | 147 | 153 | 141 | 132 | ||||
December 31, 2018 | 135 | 132 | 126 | 127 | 116 |
For the Years Ended December 31, | |||||||||||||||||||
2018 (1) | 2017 (2) | 2016 (3) | 2015 | 2014 (4) | |||||||||||||||
(In millions, except share data and percentages) | |||||||||||||||||||
Summary of Consolidated Statements of Operations | |||||||||||||||||||
Net interest income | $ | 497 | $ | 390 | $ | 323 | $ | 287 | $ | 247 | |||||||||
Provision (benefit) for loan losses | (8 | ) | 6 | (8 | ) | (19 | ) | 132 | |||||||||||
Noninterest income | 439 | 470 | 487 | 470 | 372 | ||||||||||||||
Noninterest expense | 712 | 643 | 560 | 536 | 590 | ||||||||||||||
Provision (benefit) for income taxes | 45 | 148 | 87 | 82 | (34 | ) | |||||||||||||
Net income (loss) | 187 | 63 | 171 | 158 | (69 | ) | |||||||||||||
Preferred stock dividends/accretion | — | — | — | — | (1 | ) | |||||||||||||
Net income (loss) from continuing operations | $ | 187 | $ | 63 | $ | 171 | $ | 158 | $ | (70 | ) | ||||||||
Income (loss) per share: | |||||||||||||||||||
Basic | $ | 3.26 | $ | 1.11 | $ | 2.71 | $ | 2.27 | $ | (1.72 | ) | ||||||||
Diluted | $ | 3.21 | $ | 1.09 | $ | 2.66 | $ | 2.24 | $ | (1.72 | ) | ||||||||
Weighted average shares outstanding: | |||||||||||||||||||
Basic | 57,520,289 | 57,093,868 | 56,569,307 | 56,426,977 | 56,246,528 | ||||||||||||||
Diluted | 58,322,950 | 58,178,343 | 57,597,667 | 57,164,523 | 56,246,528 |
December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(In millions, except per share data and percentages) | |||||||||||||||||||
Summary of Consolidated Statements of Financial Condition | |||||||||||||||||||
Total assets | $ | 18,531 | $ | 16,912 | $ | 14,053 | $ | 13,715 | $ | 9,840 | |||||||||
Loans receivable, net | 13,221 | 12,165 | 9,465 | 9,226 | 6,523 | ||||||||||||||
Total deposits | 12,380 | 8,934 | 8,800 | 7,935 | 7,069 | ||||||||||||||
Total short-term and long-term Federal Home Loan Bank advances | 3,394 | 5,665 | 2,980 | 3,541 | 514 | ||||||||||||||
Long-term debt | 495 | 494 | 493 | 247 | 331 | ||||||||||||||
Stockholders' equity (1) | 1,570 | 1,399 | 1,336 | 1,529 | 1,373 | ||||||||||||||
Book value per common share | 27.19 | 24.40 | 23.50 | 22.33 | 19.64 | ||||||||||||||
Tangible book value per share (2) | 23.90 | 24.04 | 23.50 | 22.33 | 19.64 | ||||||||||||||
Number of common shares outstanding | 57,749,464 | 57,321,228 | 56,824,802 | 56,483,258 | 56,332,307 |
At or For the Years Ended December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(In millions, except share data and percentages) | |||||||||||||||||||
Average Balances: | |||||||||||||||||||
Average interest-earning assets | $ | 16,136 | $ | 14,130 | $ | 12,164 | $ | 10,436 | $ | 8,440 | |||||||||
Average interest paying liabilities | 13,124 | 11,848 | 9,757 | 8,305 | 6,780 | ||||||||||||||
Average stockholders’ equity | 1,488 | 1,433 | 1,464 | 1,486 | 1,406 | ||||||||||||||
Selected Ratios: | |||||||||||||||||||
Interest rate spread (1) | 2.81 | % | 2.56 | % | 2.45 | % | 2.58 | % | 2.80 | % | |||||||||
Adjusted interest rate spread (1)(2) | 2.58 | % | 2.56 | % | 2.45 | % | 2.58 | % | 2.80 | % | |||||||||
Net interest margin | 3.07 | % | 2.75 | % | 2.64 | % | 2.74 | % | 2.91 | % | |||||||||
Adjusted net interest margin (2) | 2.89 | % | 2.75 | % | 2.64 | % | 2.74 | % | 2.91 | % | |||||||||
Return (loss) on average assets | 1.04 | % | 0.40 | % | 1.23 | % | 1.32 | % | (0.71 | )% | |||||||||
Return (loss) on average equity | 12.58 | % | 4.41 | % | 11.69 | % | 10.63 | % | (4.97 | )% | |||||||||
Return (loss) on average common equity | 12.6 | % | 4.4 | % | 13.0 | % | 10.5 | % | (6.1 | )% | |||||||||
Equity-to-assets ratio | 8.47 | % | 8.27 | % | 9.50 | % | 11.14 | % | 13.95 | % | |||||||||
Common equity-to-assets ratio | 8.47 | % | 8.27 | % | 9.50 | % | 9.20 | % | 11.24 | % | |||||||||
Tangible common equity-to-assets ratio (3) | 7.45 | % | 8.15 | % | 9.50 | % | 9.20 | % | 11.24 | % | |||||||||
Equity/assets ratio (average for the period) | 8.28 | % | 9.05 | % | 10.52 | % | 12.43 | % | 14.22 | % | |||||||||
Efficiency ratio | 76.0 | % | 74.8 | % | 69.2 | % | 70.9 | % | 95.4 | % | |||||||||
Bancorp Tier 1 leverage (to adjusted avg. total assets) (4) | 8.29 | % | 8.51 | % | 8.88 | % | 11.51 | % | N/A | ||||||||||
Bank Tier 1 leverage (to adjusted avg. total assets) (4) | 8.67 | % | 9.04 | % | 10.52 | % | 11.79 | % | 12.43 | % | |||||||||
Effective tax provision rate (5) | 19.4 | % | 70.1 | % | 33.7 | % | 34.2 | % | 32.9 | % | |||||||||
Selected Statistics: | |||||||||||||||||||
Mortgage rate lock commitments (fallout-adjusted) (6) | $ | 30,308 | $ | 32,527 | $ | 29,372 | $ | 25,511 | $ | 24,007 | |||||||||
Mortgage loans originated | $ | 32,465 | $ | 34,408 | $ | 32,417 | $ | 29,368 | $ | 24,585 | |||||||||
Mortgage loans sold and securitized | $ | 32,076 | $ | 32,493 | $ | 32,033 | $ | 26,307 | $ | 24,407 | |||||||||
Number of bank branches | 160 | 99 | 99 | 99 | 107 | ||||||||||||||
Number of FTE employees | 3,938 | 3,525 | 2,886 | 2,713 | 2,739 |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Operating Segments | |||||
Critical Accounting Estimates |
For the Years Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | Change 2020 vs. 2019 | |||||||||||||||||||||||||||
(Dollars in millions except share data) | |||||||||||||||||||||||||||||
Net interest income | $ | 685 | $ | 562 | $ | 123 | |||||||||||||||||||||||
Provision for loan losses | 149 | 18 | 131 | ||||||||||||||||||||||||||
Total noninterest income | 1,325 | 610 | 715 | ||||||||||||||||||||||||||
Total noninterest expense | 1,157 | 888 | 269 | ||||||||||||||||||||||||||
Provision for income taxes | 166 | 48 | 118 | ||||||||||||||||||||||||||
Net income | $ | 538 | $ | 218 | $ | 320 | |||||||||||||||||||||||
Adjusted net income (1) | $ | 538 | $ | 199 | $ | 339 | |||||||||||||||||||||||
Income per share: | |||||||||||||||||||||||||||||
Basic | $ | 9.59 | $ | 3.85 | $ | 5.74 | |||||||||||||||||||||||
Diluted | $ | 9.52 | $ | 3.80 | $ | 5.72 | |||||||||||||||||||||||
Adjusted diluted (1) | $ | 9.52 | $ | 3.46 | $ | 6.06 | |||||||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||||||||
Basic | 56,094,542 | 56,584,238 | (489,696) | ||||||||||||||||||||||||||
Diluted | 56,505,813 | 57,238,978 | (733,165) |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | Change 2020 vs. 2019 | |||||||||||||||
Selected Ratios: | |||||||||||||||||
Interest rate spread (1) | 2.40 | % | 2.52 | % | (0.12) | % | |||||||||||
Net interest margin | 2.80 | % | 3.05 | % | (0.25) | % | |||||||||||
Return on average assets | 2.00 | % | 1.05 | % | 0.95 | % | |||||||||||
Adjusted return on average assets (2) | 2.00 | % | 0.96 | % | 1.04 | % | |||||||||||
Return on average common equity | 26.21 | % | 12.84 | % | 13.37 | % | |||||||||||
Return on average tangible common equity (2) | 29.00 | % | 15.15 | % | 13.85 | % | |||||||||||
Adjusted return on average tangible common equity (2) | 29.00 | % | 13.87 | % | 15.13 | % | |||||||||||
Common equity-to-assets ratio | 7.09 | % | 7.68 | % | (0.59) | % | |||||||||||
Common equity-to-assets ratio (average for the period) | 7.63 | % | 8.20 | % | (0.57) | % | |||||||||||
Efficiency ratio | 57.6 | % | 75.8 | % | (18.20) | % | |||||||||||
Selected Statistics: | |||||||||||||||||
Book value per common share | 41.79 | 31.57 | 10.22 | ||||||||||||||
Tangible book value per share (2) | 38.80 | 28.57 | 10.23 | ||||||||||||||
Number of common shares outstanding | 52,656,067 | 56,631,236 | (3,975,169) |
For the Years Ended December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | Change 2018 vs. 2017 | Change 2017 vs. 2016 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Net interest income | $ | 497 | $ | 390 | $ | 323 | $ | 107 | $ | 67 | |||||||||
Provision (benefit) for loan losses | (8 | ) | 6 | (8 | ) | (14 | ) | 14 | |||||||||||
Total noninterest income | 439 | 470 | 487 | (31 | ) | (17 | ) | ||||||||||||
Total noninterest expense | 712 | 643 | 560 | 69 | 83 | ||||||||||||||
Provision for income taxes | 45 | 148 | 87 | (103 | ) | 61 | |||||||||||||
Net income | $ | 187 | $ | 63 | $ | 171 | $ | 124 | $ | (108 | ) | ||||||||
Adjusted net income (1) | $ | 176 | $ | 143 | $ | 155 | $ | 33 | $ | (12 | ) | ||||||||
Income per share: | |||||||||||||||||||
Basic | $ | 3.26 | $ | 1.11 | $ | 2.71 | $ | 2.15 | $ | (1.60 | ) | ||||||||
Diluted | $ | 3.21 | $ | 1.09 | $ | 2.66 | $ | 2.12 | $ | (1.57 | ) | ||||||||
Adjusted diluted (1) | $ | 3.02 | $ | 2.47 | $ | 2.38 | $ | 0.55 | $ | 0.09 |
For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest | Average Yield/ Rate | Average Balance | Interest | Average Yield/ Rate | ||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
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 (1) | 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 | 6,725 | 3,839 | |||||||||||||||||||||||||||||||||
Total non-interest bearing deposits (2) | 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 (3) | 2.40 | % | 2.52 | % | |||||||||||||||||||||||||||||||
Net interest margin (4) | 2.80 | % | 3.05 | % | |||||||||||||||||||||||||||||||
Ratio of average interest-earning assets to interest-bearing liabilities | 169.5 | % | 140.5 | % | |||||||||||||||||||||||||||||||
Total average deposits | $ | 18,544 | $ | 14,708 |
For the Years Ended December 31, | ||||||||||||||||||||||||||
2018 | 2017 | 2016 | ||||||||||||||||||||||||
Average Balance | Interest | Average Yield/ Rate | Average Balance | Interest | Average Yield/ Rate | Average Balance | Interest | Average Yield/ Rate | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Interest-Earning Assets | ||||||||||||||||||||||||||
Loans held-for-sale | $ | 4,196 | $ | 190 | 4.52 | % | $ | 4,146 | $ | 165 | 3.99 | % | $ | 3,134 | $ | 113 | 3.62 | % | ||||||||
Loans held-for-investment | ||||||||||||||||||||||||||
Residential first mortgage | 2,949 | 105 | 3.56 | % | 2,549 | 85 | 3.35 | % | 2,328 | 74 | 3.16 | % | ||||||||||||||
Home Equity | 690 | 36 | 5.21 | % | 471 | 24 | 5.06 | % | 475 | 24 | 5.17 | % | ||||||||||||||
Other | 111 | 6 | 5.73 | % | 26 | 1 | 4.51 | % | 29 | 1 | 4.73 | % | ||||||||||||||
Total Consumer loans | 3,750 | 147 | 3.93 | % | 3,046 | 110 | 3.62 | % | 2,832 | 99 | 3.52 | % | ||||||||||||||
Commercial Real Estate | 2,063 | 109 | 5.23 | % | 1,579 | 68 | 4.25 | % | 1,004 | 35 | 3.46 | % | ||||||||||||||
Commercial and Industrial | 1,288 | 69 | 5.32 | % | 981 | 47 | 4.73 | % | 631 | 27 | 4.22 | % | ||||||||||||||
Warehouse Lending | 1,318 | 69 | 5.14 | % | 890 | 43 | 4.73 | % | 1,346 | 58 | 4.22 | % | ||||||||||||||
Total Commercial loans | 4,669 | 247 | 5.23 | % | 3,450 | 158 | 4.51 | % | 2,981 | 120 | 3.97 | % | ||||||||||||||
Total loans held-for-investment (1) | 8,419 | 394 | 4.65 | % | 6,496 | 268 | 4.09 | % | 5,813 | 219 | 3.75 | % | ||||||||||||||
Loans with government guarantees | 303 | 11 | 3.53 | % | 290 | 13 | 4.30 | % | 435 | 16 | 3.59 | % | ||||||||||||||
Investment securities | 3,094 | 86 | 2.76 | % | 3,121 | 80 | 2.57 | % | 2,653 | 68 | 2.56 | % | ||||||||||||||
Interest-bearing deposits | 124 | 2 | 1.83 | % | 77 | 1 | 1.15 | % | 129 | 1 | 0.50 | % | ||||||||||||||
Total interest-earning assets | 16,136 | $ | 683 | 4.21 | % | 14,130 | $ | 527 | 3.71 | % | 12,164 | $ | 417 | 3.42 | % | |||||||||||
Other assets | 1,844 | 1,716 | 1,743 | |||||||||||||||||||||||
Total assets | $ | 17,980 | $ | 15,846 | $ | 13,907 | ||||||||||||||||||||
Interest-Bearing Liabilities | ||||||||||||||||||||||||||
Retail deposits | ||||||||||||||||||||||||||
Demand deposits | $ | 764 | $ | 7 | 0.93 | % | $ | 514 | $ | 1 | 0.19 | % | $ | 489 | $ | 1 | 0.18 | % | ||||||||
Savings deposits | 3,300 | 29 | 0.87 | % | 3,829 | 29 | 0.76 | % | 3,751 | 29 | 0.78 | % | ||||||||||||||
Money market deposits | 288 | 2 | 0.49 | % | 255 | 1 | 0.50 | % | 278 | 1 | 0.44 | % | ||||||||||||||
Certificates of deposit | 2,015 | 34 | 1.70 | % | 1,187 | 14 | 1.18 | % | 990 | 10 | 1.05 | % | ||||||||||||||
Total retail deposits | 6,367 | 72 | 1.12 | % | 5,785 | 45 | 0.78 | % | 5,508 | 41 | 0.76 | % | ||||||||||||||
Government deposits | ||||||||||||||||||||||||||
Demand deposits | 259 | 1 | 0.57 | % | 222 | 1 | 0.45 | % | 228 | 1 | 0.39 | % | ||||||||||||||
Savings deposits | 535 | 8 | 1.41 | % | 406 | 3 | 0.68 | % | 442 | 2 | 0.52 | % | ||||||||||||||
Certificates of deposit | 355 | 5 | 1.44 | % | 329 | 2 | 0.82 | % | 382 | 2 | 0.40 | % | ||||||||||||||
Total government deposits | 1,149 | 14 | 1.23 | % | 957 | 6 | 0.67 | % | 1,052 | 5 | 0.45 | % | ||||||||||||||
Wholesale deposits and other | 401 | 8 | 2.02 | % | 23 | — | 1.35 | % | — | — | — | % | ||||||||||||||
Total interest-bearing deposits | 7,917 | 94 | 1.18 | % | 6,765 | 51 | 0.77 | % | 6,560 | 46 | 0.71 | % | ||||||||||||||
Short-term FHLB advances and other | 3,521 | 68 | 1.93 | % | 3,356 | 37 | 1.09 | % | 1,249 | 5 | 0.44 | % | ||||||||||||||
Long-term FHLB advances | 1,192 | (4 | ) | (0.32 | )% | 1,234 | 24 | 1.92 | % | 1,584 | 27 | 1.72 | % | |||||||||||||
Less: Swap gain reclassified out of OCI (5) | — | 29 | — | % | — | — | — | % | — | — | — | % | ||||||||||||||
Adjusted long-term FHLB advances (5) | 1,192 | 25 | 2.12 | % | 1,234 | 24 | 1.92 | % | 1,584 | 27 | 1.72 | % | ||||||||||||||
Other long-term debt | 494 | 28 | 5.56 | % | 493 | 25 | 5.08 | % | 364 | 16 | 4.34 | % | ||||||||||||||
Adjusted total interest-bearing liabilities (5) | 13,124 | 215 | 1.63 | % | 11,848 | 137 | 1.15 | % | 9,757 | 94 | 0.97 | % | ||||||||||||||
Noninterest-bearing deposits (2) | 2,858 | 2,142 | 2,202 | |||||||||||||||||||||||
Other liabilities | 510 | 423 | 484 | |||||||||||||||||||||||
Stockholders’ equity | 1,488 | 1,433 | 1,464 | |||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 17,980 | $ | 15,846 | $ | 13,907 | ||||||||||||||||||||
Adjusted net interest income (5) | $ | 468 | $ | 390 | $ | 323 | ||||||||||||||||||||
Adjusted interest rate spread (3) (5) | 2.58 | % | 2.56 | % | 2.45 | % | ||||||||||||||||||||
Adjusted net interest margin (4) (5) | 2.89 | % | 2.75 | % | 2.64 | % | ||||||||||||||||||||
Ratio of average interest-earning assets to interest-bearing liabilities | 122.9 | % | 119.3 | % | 124.7 | % |
For the Years Ended December 31, | |||||||||||||||||||||||
2020 Versus 2019 Increase (Decrease) Due to: | |||||||||||||||||||||||
Rate | Volume | Total | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Interest-Earning Assets | |||||||||||||||||||||||
Loans held-for-sale | $ | (54) | $ | 68 | $ | 14 | |||||||||||||||||
Loans held-for-investment | |||||||||||||||||||||||
Residential first mortgage | (6) | (17) | (23) | ||||||||||||||||||||
Home equity | (12) | 5 | (7) | ||||||||||||||||||||
Other | (9) | 22 | 13 | ||||||||||||||||||||
Total consumer loans | (27) | 10 | (17) | ||||||||||||||||||||
Commercial real estate | (48) | 28 | (20) | ||||||||||||||||||||
Commercial and industrial | (24) | (1) | (25) | ||||||||||||||||||||
Warehouse lending | (46) | 129 | 83 | ||||||||||||||||||||
Total commercial loans | (118) | 156 | 38 | ||||||||||||||||||||
Total loans held-for-investment | (145) | 166 | 21 | ||||||||||||||||||||
Loans with government guarantees | (27) | 27 | — | ||||||||||||||||||||
Investment securities | (10) | 3 | (7) | ||||||||||||||||||||
Interest-earning deposits | (8) | 5 | (3) | ||||||||||||||||||||
Total interest-earning assets | $ | (244) | $ | 269 | $ | 25 | |||||||||||||||||
Interest-Bearing Liabilities | |||||||||||||||||||||||
Interest-bearing deposits | $ | (63) | $ | 6 | $ | (57) | |||||||||||||||||
Short-term FHLB advances and other | (47) | 4 | (43) | ||||||||||||||||||||
Long-term FHLB advances | (5) | 10 | 5 | ||||||||||||||||||||
Other long-term debt | (4) | 1 | (3) | ||||||||||||||||||||
Total interest-bearing liabilities | (119) | 21 | (98) | ||||||||||||||||||||
Change in net interest income | $ | (125) | $ | 248 | $ | 123 |
For the Years Ended December 31, | |||||||||||||||||||||||
2018 Versus 2017 Increase (Decrease) Due to: | 2017 Versus 2016 Increase (Decrease) Due to: | ||||||||||||||||||||||
Rate | Volume | Total | Rate | Volume | Total | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Interest-Earning Assets | |||||||||||||||||||||||
Loans held-for-sale | $ | 23 | $ | 2 | $ | 25 | $ | 15 | $ | 37 | $ | 52 | |||||||||||
Loans held-for-investment | |||||||||||||||||||||||
Residential first mortgage | 7 | 13 | 20 | 5 | 6 | 11 | |||||||||||||||||
Home equity | 2 | 10 | 12 | — | — | — | |||||||||||||||||
Other | 1 | 4 | 5 | — | — | — | |||||||||||||||||
Total Consumer loans | 10 | 27 | 37 | 5 | 6 | 11 | |||||||||||||||||
Commercial Real Estate | 20 | 21 | 41 | 13 | 20 | 33 | |||||||||||||||||
Commercial and Industrial | 8 | 14 | 22 | 5 | 15 | 20 | |||||||||||||||||
Warehouse Lending | 6 | 20 | 26 | 4 | (19 | ) | (15 | ) | |||||||||||||||
Total Commercial loans | 34 | 55 | 89 | 22 | 16 | 38 | |||||||||||||||||
Total loans held-for-investment | 44 | 82 | 126 | 27 | 22 | 49 | |||||||||||||||||
Loans with government guarantees | (3 | ) | 1 | (2 | ) | 2 | (5 | ) | (3 | ) | |||||||||||||
Investment securities | 7 | (1 | ) | 6 | — | 12 | 12 | ||||||||||||||||
Interest-earning deposits | — | 1 | 1 | — | — | — | |||||||||||||||||
Total interest-earning assets | $ | 71 | $ | 85 | $ | 156 | $ | 44 | $ | 66 | $ | 110 | |||||||||||
Interest-Bearing Liabilities | |||||||||||||||||||||||
Interest-bearing deposits | $ | 34 | $ | 9 | $ | 43 | $ | 3 | $ | 3 | $ | 6 | |||||||||||
Short-term FHLB advances and other | 30 | 1 | 31 | 22 | 9 | 31 | |||||||||||||||||
Long-term FHLB advances (1) | 2 | (1 | ) | 1 | 2 | (5 | ) | (3 | ) | ||||||||||||||
Other long-term debt | 2 | 1 | 3 | 4 | 5 | 9 | |||||||||||||||||
Total interest-bearing liabilities (1) | 68 | 10 | 78 | 31 | 12 | 43 | |||||||||||||||||
Change in net interest income (1) | $ | 3 | $ | 75 | $ | 78 | $ | 13 | $ | 54 | $ | 67 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Net gain on loan sales | $ | 971 | $ | 335 | |||||||||||||
Loan fees and charges | 165 | 100 | |||||||||||||||
Net return on mortgage servicing rights | 10 | 6 | |||||||||||||||
Loan administration income | 84 | 30 | |||||||||||||||
Deposit fees and charges | 32 | 38 | |||||||||||||||
Other noninterest income | 63 | 101 | |||||||||||||||
Total noninterest income | $ | 1,325 | $ | 610 |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(Dollars in millions) | |||||||||||
Net gain on loan sales | $ | 200 | $ | 268 | $ | 316 | |||||
Loan fees and charges | 87 | 82 | 76 | ||||||||
Net return (loss) on mortgage servicing rights | 36 | 22 | (26 | ) | |||||||
Loan administration income | 23 | 21 | 18 | ||||||||
Deposit fees and charges | 21 | 18 | 22 | ||||||||
Other noninterest income | 72 | 59 | 81 | ||||||||
Total noninterest income | $ | 439 | $ | 470 | $ | 487 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Mortgage rate lock commitments (fallout-adjusted) (1) (2) | $ | 52,000 | $ | 32,300 | |||||||||||||
Mortgage loans closed (1) | $ | 48,300 | $ | 32,700 | |||||||||||||
Mortgage loans sold and securitized (1) | $ | 46,900 | $ | 30,300 | |||||||||||||
Net margin on mortgage rate lock commitments (fallout-adjusted) (2) (3) | 1.86 | % | 1.03 | % | |||||||||||||
Net margin on loans sold and securitized | 2.06 | % | 1.10 | % |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(Dollars in millions) | |||||||||||
Mortgage rate lock commitments (fallout-adjusted) (1) | $ | 30,308 | $ | 32,527 | $ | 29,372 | |||||
Net margin on mortgage rate lock commitments (fallout-adjusted) (1) (2) | 0.65 | % | 0.82 | % | 1.02 | % | |||||
Net margin on loans sold and securitized | 0.62 | % | 0.82 | % | 0.94 | % |
For the Years Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Compensation and benefits | $ | 466 | $ | 377 | |||||||||||||||||||||||||
Occupancy and equipment | 176 | 161 | |||||||||||||||||||||||||||
Commissions | 232 | 111 | |||||||||||||||||||||||||||
Loan processing expense | 98 | 80 | |||||||||||||||||||||||||||
Legal and professional expense | 31 | 27 | |||||||||||||||||||||||||||
Federal insurance premiums | 24 | 20 | |||||||||||||||||||||||||||
Intangible asset amortization | 13 | 15 | |||||||||||||||||||||||||||
Other noninterest expense | 117 | 97 | |||||||||||||||||||||||||||
Total noninterest expense | $ | 1,157 | $ | 888 |
For the Years Ended December 31, | |||||||||||||||||||
2018 | Wells Fargo Branch Acquisition Expenses | Adjusted 2018 (1) | 2017 | 2016 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Compensation and benefits | $ | 318 | $ | 3 | $ | 315 | $ | 299 | $ | 269 | |||||||||
Occupancy and equipment | 127 | 3 | 124 | 103 | 85 | ||||||||||||||
Commissions | 80 | — | 80 | 72 | 55 | ||||||||||||||
Loan processing expense | 59 | — | 59 | 57 | 55 | ||||||||||||||
Legal and professional expense | 28 | 3 | 25 | 30 | 29 | ||||||||||||||
Federal insurance premiums | 22 | — | 22 | 16 | 11 | ||||||||||||||
Intangible asset amortization | 5 | — | 5 | — | — | ||||||||||||||
Other noninterest expense | 73 | 6 | 67 | 66 | 56 | ||||||||||||||
Total noninterest expense (1) | $ | 712 | $ | 15 | $ | 697 | $ | 643 | $ | 560 |
For the Years Ended December 31, | For the Years Ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | 2020 | 2019 | |||||||||||||||||||||
Efficiency ratio | 76.0 | % | 74.8 | % | 69.2 | % | Efficiency ratio | 57.6 | % | 75.8 | % | ||||||||||||||
Average number FTE | 3,655 | 3,303 | 2,850 | ||||||||||||||||||||||
Number of FTE employees | Number of FTE employees | 5,214 | 4,453 |
As of December 31, 2020 | |||||
Loan Exposure | |||||
(Dollars in millions) | |||||
Retail | $ | 298 | |||
Hotel | $ | 279 | |||
Leisure & Entertainment | $ | 148 | |||
Senior Housing | $ | 145 | |||
Automotive | $ | 79 | |||
Healthcare | $ | 22 |
Owned | Leased | Total | Free-Standing Office Building | In-Store Banking Center | Buildings with Other Tenants | Total | ||||||||||||||||||||
Michigan | 87 | 27 | 114 | 90 | 2 | 22 | 114 | |||||||||||||||||||
Indiana | 27 | 5 | 32 | 31 | — | 1 | 32 | |||||||||||||||||||
California | 8 | — | 8 | 8 | — | — | 8 | |||||||||||||||||||
Wisconsin | 3 | — | 3 | 3 | — | — | 3 | |||||||||||||||||||
Ohio | 1 | — | 1 | 1 | — | — | 1 | |||||||||||||||||||
Total | 126 | 32 | 158 | 133 | 2 | 23 | 158 |
ITEM 5. | MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES |
Period | Total Number of Shares Purchased | Average Price per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan (1) | Maximum Number of Shares that May Yet be Purchased Under the Plan | ||||||||||
October 1, 2020 to October 31, 2020 | 4,587,647 | $ | 32.6965 | 4,587,647 | — | |||||||||
November 1, 2020 to November 30, 2020 | — | — | — | — | ||||||||||
December 1, 2020 to December 31, 2020 | — | — | — | — |
Three Months Ended | |||||||||||
December 31, 2018 | September 30, 2018 | December 31, 2017 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||
(Dollars in millions) | |||||||||||
Net interest income | $ | 152 | $ | 124 | $ | 107 | |||||
Provision (benefit) for loan losses | (5 | ) | (2 | ) | 2 | ||||||
Total noninterest income | 98 | 107 | 124 | ||||||||
Total noninterest expense | 189 | 173 | 178 | ||||||||
Provision for income taxes | 12 | 12 | 96 | ||||||||
Net income | $ | 54 | $ | 48 | $ | (45 | ) | ||||
Adjusted net income (1) | $ | 42 | $ | 49 | $ | 35 | |||||
Income per share: | |||||||||||
Basic | $ | 0.94 | $ | 0.84 | $ | (0.79 | ) | ||||
Diluted | $ | 0.93 | $ | 0.83 | $ | (0.79 | ) | ||||
Adjusted diluted (1) | $ | 0.72 | $ | 0.85 | $ | 0.60 |
Flagstar Bancorp | Nasdaq Financial | Nasdaq Bank | S&P Small Cap 600 | Russell 2000 | |||||||||||||
12/31/2015 | 100 | 100 | 100 | 100 | 100 | ||||||||||||
12/31/2016 | 117 | 123 | 135 | 125 | 119 | ||||||||||||
12/31/2017 | 162 | 139 | 140 | 139 | 135 | ||||||||||||
12/31/2018 | 114 | 125 | 115 | 126 | 119 | ||||||||||||
12/31/2019 | 166 | 157 | 139 | 152 | 147 | ||||||||||||
12/31/2020 | 176 | 159 | 124 | 167 | 174 |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Operating Segments | |||||
Critical Accounting Estimates |
For the Years Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | Change 2020 vs. 2019 | |||||||||||||||||||||||||||
(Dollars in millions except share data) | |||||||||||||||||||||||||||||
Net interest income | $ | 685 | $ | 562 | $ | 123 | |||||||||||||||||||||||
Provision for loan losses | 149 | 18 | 131 | ||||||||||||||||||||||||||
Total noninterest income | 1,325 | 610 | 715 | ||||||||||||||||||||||||||
Total noninterest expense | 1,157 | 888 | 269 | ||||||||||||||||||||||||||
Provision for income taxes | 166 | 48 | 118 | ||||||||||||||||||||||||||
Net income | $ | 538 | $ | 218 | $ | 320 | |||||||||||||||||||||||
Adjusted net income (1) | $ | 538 | $ | 199 | $ | 339 | |||||||||||||||||||||||
Income per share: | |||||||||||||||||||||||||||||
Basic | $ | 9.59 | $ | 3.85 | $ | 5.74 | |||||||||||||||||||||||
Diluted | $ | 9.52 | $ | 3.80 | $ | 5.72 | |||||||||||||||||||||||
Adjusted diluted (1) | $ | 9.52 | $ | 3.46 | $ | 6.06 | |||||||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||||||||
Basic | 56,094,542 | 56,584,238 | (489,696) | ||||||||||||||||||||||||||
Diluted | 56,505,813 | 57,238,978 | (733,165) |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | Change 2020 vs. 2019 | |||||||||||||||
Selected Ratios: | |||||||||||||||||
Interest rate spread (1) | 2.40 | % | 2.52 | % | (0.12) | % | |||||||||||
Net interest margin | 2.80 | % | 3.05 | % | (0.25) | % | |||||||||||
Return on average assets | 2.00 | % | 1.05 | % | 0.95 | % | |||||||||||
Adjusted return on average assets (2) | 2.00 | % | 0.96 | % | 1.04 | % | |||||||||||
Return on average common equity | 26.21 | % | 12.84 | % | 13.37 | % | |||||||||||
Return on average tangible common equity (2) | 29.00 | % | 15.15 | % | 13.85 | % | |||||||||||
Adjusted return on average tangible common equity (2) | 29.00 | % | 13.87 | % | 15.13 | % | |||||||||||
Common equity-to-assets ratio | 7.09 | % | 7.68 | % | (0.59) | % | |||||||||||
Common equity-to-assets ratio (average for the period) | 7.63 | % | 8.20 | % | (0.57) | % | |||||||||||
Efficiency ratio | 57.6 | % | 75.8 | % | (18.20) | % | |||||||||||
Selected Statistics: | |||||||||||||||||
Book value per common share | 41.79 | 31.57 | 10.22 | ||||||||||||||
Tangible book value per share (2) | 38.80 | 28.57 | 10.23 | ||||||||||||||
Number of common shares outstanding | 52,656,067 | 56,631,236 | (3,975,169) |
For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest | Average Yield/ Rate | Average Balance | Interest | Average Yield/ Rate | ||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
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 (1) | 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 | 6,725 | 3,839 | |||||||||||||||||||||||||||||||||
Total non-interest bearing deposits (2) | 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 (3) | 2.40 | % | 2.52 | % | |||||||||||||||||||||||||||||||
Net interest margin (4) | 2.80 | % | 3.05 | % | |||||||||||||||||||||||||||||||
Ratio of average interest-earning assets to interest-bearing liabilities | 169.5 | % | 140.5 | % | |||||||||||||||||||||||||||||||
Total average deposits | $ | 18,544 | $ | 14,708 |
For the Years Ended December 31, | |||||||||||||||||||||||
2020 Versus 2019 Increase (Decrease) Due to: | |||||||||||||||||||||||
Rate | Volume | Total | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Interest-Earning Assets | |||||||||||||||||||||||
Loans held-for-sale | $ | (54) | $ | 68 | $ | 14 | |||||||||||||||||
Loans held-for-investment | |||||||||||||||||||||||
Residential first mortgage | (6) | (17) | (23) | ||||||||||||||||||||
Home equity | (12) | 5 | (7) | ||||||||||||||||||||
Other | (9) | 22 | 13 | ||||||||||||||||||||
Total consumer loans | (27) | 10 | (17) | ||||||||||||||||||||
Commercial real estate | (48) | 28 | (20) | ||||||||||||||||||||
Commercial and industrial | (24) | (1) | (25) | ||||||||||||||||||||
Warehouse lending | (46) | 129 | 83 | ||||||||||||||||||||
Total commercial loans | (118) | 156 | 38 | ||||||||||||||||||||
Total loans held-for-investment | (145) | 166 | 21 | ||||||||||||||||||||
Loans with government guarantees | (27) | 27 | — | ||||||||||||||||||||
Investment securities | (10) | 3 | (7) | ||||||||||||||||||||
Interest-earning deposits | (8) | 5 | (3) | ||||||||||||||||||||
Total interest-earning assets | $ | (244) | $ | 269 | $ | 25 | |||||||||||||||||
Interest-Bearing Liabilities | |||||||||||||||||||||||
Interest-bearing deposits | $ | (63) | $ | 6 | $ | (57) | |||||||||||||||||
Short-term FHLB advances and other | (47) | 4 | (43) | ||||||||||||||||||||
Long-term FHLB advances | (5) | 10 | 5 | ||||||||||||||||||||
Other long-term debt | (4) | 1 | (3) | ||||||||||||||||||||
Total interest-bearing liabilities | (119) | 21 | (98) | ||||||||||||||||||||
Change in net interest income | $ | (125) | $ | 248 | $ | 123 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Net gain on loan sales | $ | 971 | $ | 335 | |||||||||||||
Loan fees and charges | 165 | 100 | |||||||||||||||
Net return on mortgage servicing rights | 10 | 6 | |||||||||||||||
Loan administration income | 84 | 30 | |||||||||||||||
Deposit fees and charges | 32 | 38 | |||||||||||||||
Other noninterest income | 63 | 101 | |||||||||||||||
Total noninterest income | $ | 1,325 | $ | 610 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Mortgage rate lock commitments (fallout-adjusted) (1) (2) | $ | 52,000 | $ | 32,300 | |||||||||||||
Mortgage loans closed (1) | $ | 48,300 | $ | 32,700 | |||||||||||||
Mortgage loans sold and securitized (1) | $ | 46,900 | $ | 30,300 | |||||||||||||
Net margin on mortgage rate lock commitments (fallout-adjusted) (2) (3) | 1.86 | % | 1.03 | % | |||||||||||||
Net margin on loans sold and securitized | 2.06 | % | 1.10 | % |
For the Years Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Compensation and benefits | $ | 466 | $ | 377 | |||||||||||||||||||||||||
Occupancy and equipment | 176 | 161 | |||||||||||||||||||||||||||
Commissions | 232 | 111 | |||||||||||||||||||||||||||
Loan processing expense | 98 | 80 | |||||||||||||||||||||||||||
Legal and professional expense | 31 | 27 | |||||||||||||||||||||||||||
Federal insurance premiums | 24 | 20 | |||||||||||||||||||||||||||
Intangible asset amortization | 13 | 15 | |||||||||||||||||||||||||||
Other noninterest expense | 117 | 97 | |||||||||||||||||||||||||||
Total noninterest expense | $ | 1,157 | $ | 888 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Efficiency ratio | 57.6 | % | 75.8 | % | |||||||||||||
Number of FTE employees | 5,214 | 4,453 |
As of December 31, 2020 | |||||
Loan Exposure | |||||
(Dollars in millions) | |||||
Retail | $ | 298 | |||
Hotel | $ | 279 | |||
Leisure & Entertainment | $ | 148 | |||
Senior Housing | $ | 145 | |||
Automotive | $ | 79 | |||
Healthcare | $ | 22 |
Owned | Leased | Total | Free-Standing Office Building | In-Store Banking Center | Buildings with Other Tenants | Total | ||||||||||||||||||||
Michigan | 87 | 27 | 114 | 90 | 2 | 22 | 114 | |||||||||||||||||||
Indiana | 27 | 5 | 32 | 31 | — | 1 | 32 | |||||||||||||||||||
California | 8 | — | 8 | 8 | — | — | 8 | |||||||||||||||||||
Wisconsin | 3 | — | 3 | 3 | — | — | 3 | |||||||||||||||||||
Ohio | 1 | — | 1 | 1 | — | — | 1 | |||||||||||||||||||
Total | 126 | 32 | 158 | 133 | 2 | 23 | 158 |
ITEM 5. | MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES |
Period | Total Number of Shares Purchased | Average Price per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan (1) | Maximum Number of Shares that May Yet be Purchased Under the Plan | ||||||||||
October 1, 2020 to October 31, 2020 | 4,587,647 | $ | 32.6965 | 4,587,647 | — | |||||||||
November 1, 2020 to November 30, 2020 | — | — | — | — | ||||||||||
December 1, 2020 to December 31, 2020 | — | — | — | — |
Flagstar Bancorp | Nasdaq Financial | Nasdaq Bank | S&P Small Cap 600 | Russell 2000 | |||||||||||||
12/31/2015 | 100 | 100 | 100 | 100 | 100 | ||||||||||||
12/31/2016 | 117 | 123 | 135 | 125 | 119 | ||||||||||||
12/31/2017 | 162 | 139 | 140 | 139 | 135 | ||||||||||||
12/31/2018 | 114 | 125 | 115 | 126 | 119 | ||||||||||||
12/31/2019 | 166 | 157 | 139 | 152 | 147 | ||||||||||||
12/31/2020 | 176 | 159 | 124 | 167 | 174 |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Operating Segments | |||||
Critical Accounting Estimates |
For the Years Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | Change 2020 vs. 2019 | |||||||||||||||||||||||||||
(Dollars in millions except share data) | |||||||||||||||||||||||||||||
Net interest income | $ | 685 | $ | 562 | $ | 123 | |||||||||||||||||||||||
Provision for loan losses | 149 | 18 | 131 | ||||||||||||||||||||||||||
Total noninterest income | 1,325 | 610 | 715 | ||||||||||||||||||||||||||
Total noninterest expense | 1,157 | 888 | 269 | ||||||||||||||||||||||||||
Provision for income taxes | 166 | 48 | 118 | ||||||||||||||||||||||||||
Net income | $ | 538 | $ | 218 | $ | 320 | |||||||||||||||||||||||
Adjusted net income (1) | $ | 538 | $ | 199 | $ | 339 | |||||||||||||||||||||||
Income per share: | |||||||||||||||||||||||||||||
Basic | $ | 9.59 | $ | 3.85 | $ | 5.74 | |||||||||||||||||||||||
Diluted | $ | 9.52 | $ | 3.80 | $ | 5.72 | |||||||||||||||||||||||
Adjusted diluted (1) | $ | 9.52 | $ | 3.46 | $ | 6.06 | |||||||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||||||||
Basic | 56,094,542 | 56,584,238 | (489,696) | ||||||||||||||||||||||||||
Diluted | 56,505,813 | 57,238,978 | (733,165) |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | Change 2020 vs. 2019 | |||||||||||||||
Selected Ratios: | |||||||||||||||||
Interest rate spread (1) | 2.40 | % | 2.52 | % | (0.12) | % | |||||||||||
Net interest margin | 2.80 | % | 3.05 | % | (0.25) | % | |||||||||||
Return on average assets | 2.00 | % | 1.05 | % | 0.95 | % | |||||||||||
Adjusted return on average assets (2) | 2.00 | % | 0.96 | % | 1.04 | % | |||||||||||
Return on average common equity | 26.21 | % | 12.84 | % | 13.37 | % | |||||||||||
Return on average tangible common equity (2) | 29.00 | % | 15.15 | % | 13.85 | % | |||||||||||
Adjusted return on average tangible common equity (2) | 29.00 | % | 13.87 | % | 15.13 | % | |||||||||||
Common equity-to-assets ratio | 7.09 | % | 7.68 | % | (0.59) | % | |||||||||||
Common equity-to-assets ratio (average for the period) | 7.63 | % | 8.20 | % | (0.57) | % | |||||||||||
Efficiency ratio | 57.6 | % | 75.8 | % | (18.20) | % | |||||||||||
Selected Statistics: | |||||||||||||||||
Book value per common share | 41.79 | 31.57 | 10.22 | ||||||||||||||
Tangible book value per share (2) | 38.80 | 28.57 | 10.23 | ||||||||||||||
Number of common shares outstanding | 52,656,067 | 56,631,236 | (3,975,169) |
For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest | Average Yield/ Rate | Average Balance | Interest | Average Yield/ Rate | ||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
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 (1) | 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 | 6,725 | 3,839 | |||||||||||||||||||||||||||||||||
Total non-interest bearing deposits (2) | 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 (3) | 2.40 | % | 2.52 | % | |||||||||||||||||||||||||||||||
Net interest margin (4) | 2.80 | % | 3.05 | % | |||||||||||||||||||||||||||||||
Ratio of average interest-earning assets to interest-bearing liabilities | 169.5 | % | 140.5 | % | |||||||||||||||||||||||||||||||
Total average deposits | $ | 18,544 | $ | 14,708 |
For the Years Ended December 31, | |||||||||||||||||||||||
2020 Versus 2019 Increase (Decrease) Due to: | |||||||||||||||||||||||
Rate | Volume | Total | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Interest-Earning Assets | |||||||||||||||||||||||
Loans held-for-sale | $ | (54) | $ | 68 | $ | 14 | |||||||||||||||||
Loans held-for-investment | |||||||||||||||||||||||
Residential first mortgage | (6) | (17) | (23) | ||||||||||||||||||||
Home equity | (12) | 5 | (7) | ||||||||||||||||||||
Other | (9) | 22 | 13 | ||||||||||||||||||||
Total consumer loans | (27) | 10 | (17) | ||||||||||||||||||||
Commercial real estate | (48) | 28 | (20) | ||||||||||||||||||||
Commercial and industrial | (24) | (1) | (25) | ||||||||||||||||||||
Warehouse lending | (46) | 129 | 83 | ||||||||||||||||||||
Total commercial loans | (118) | 156 | 38 | ||||||||||||||||||||
Total loans held-for-investment | (145) | 166 | 21 | ||||||||||||||||||||
Loans with government guarantees | (27) | 27 | — | ||||||||||||||||||||
Investment securities | (10) | 3 | (7) | ||||||||||||||||||||
Interest-earning deposits | (8) | 5 | (3) | ||||||||||||||||||||
Total interest-earning assets | $ | (244) | $ | 269 | $ | 25 | |||||||||||||||||
Interest-Bearing Liabilities | |||||||||||||||||||||||
Interest-bearing deposits | $ | (63) | $ | 6 | $ | (57) | |||||||||||||||||
Short-term FHLB advances and other | (47) | 4 | (43) | ||||||||||||||||||||
Long-term FHLB advances | (5) | 10 | 5 | ||||||||||||||||||||
Other long-term debt | (4) | 1 | (3) | ||||||||||||||||||||
Total interest-bearing liabilities | (119) | 21 | (98) | ||||||||||||||||||||
Change in net interest income | $ | (125) | $ | 248 | $ | 123 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Net gain on loan sales | $ | 971 | $ | 335 | |||||||||||||
Loan fees and charges | 165 | 100 | |||||||||||||||
Net return on mortgage servicing rights | 10 | 6 | |||||||||||||||
Loan administration income | 84 | 30 | |||||||||||||||
Deposit fees and charges | 32 | 38 | |||||||||||||||
Other noninterest income | 63 | 101 | |||||||||||||||
Total noninterest income | $ | 1,325 | $ | 610 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Mortgage rate lock commitments (fallout-adjusted) (1) (2) | $ | 52,000 | $ | 32,300 | |||||||||||||
Mortgage loans closed (1) | $ | 48,300 | $ | 32,700 | |||||||||||||
Mortgage loans sold and securitized (1) | $ | 46,900 | $ | 30,300 | |||||||||||||
Net margin on mortgage rate lock commitments (fallout-adjusted) (2) (3) | 1.86 | % | 1.03 | % | |||||||||||||
Net margin on loans sold and securitized | 2.06 | % | 1.10 | % |
For the Years Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Compensation and benefits | $ | 466 | $ | 377 | |||||||||||||||||||||||||
Occupancy and equipment | 176 | 161 | |||||||||||||||||||||||||||
Commissions | 232 | 111 | |||||||||||||||||||||||||||
Loan processing expense | 98 | 80 | |||||||||||||||||||||||||||
Legal and professional expense | 31 | 27 | |||||||||||||||||||||||||||
Federal insurance premiums | 24 | 20 | |||||||||||||||||||||||||||
Intangible asset amortization | 13 | 15 | |||||||||||||||||||||||||||
Other noninterest expense | 117 | 97 | |||||||||||||||||||||||||||
Total noninterest expense | $ | 1,157 | $ | 888 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Efficiency ratio | 57.6 | % | 75.8 | % | |||||||||||||
Number of FTE employees | 5,214 | 4,453 |
Three Months Ended | |||||||||||||||||
December 31, 2020 | September 30, 2020 | December 31, 2019 | |||||||||||||||
(Unaudited) | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Net interest income | $ | 189 | $ | 180 | $ | 152 | |||||||||||
Provision for credit losses | 2 | 32 | — | ||||||||||||||
Noninterest income | 337 | 452 | 162 | ||||||||||||||
Noninterest expense | 319 | 305 | 245 | ||||||||||||||
Provision for income taxes | 51 | 73 | 11 | ||||||||||||||
Net income | $ | 154 | $ | 222 | $ | 58 | |||||||||||
Income per share: | |||||||||||||||||
Basic | $ | 2.86 | $ | 3.90 | $ | 1.01 | |||||||||||
Diluted | $ | 2.83 | $ | 3.88 | $ | 1.00 |
For the Years Ended December 31, | For the Years Ended December 31, | |||||||||||||||||||||||||||
Community Banking | 2018 | 2017 | 2016 | Community Banking | 2020 | 2019 | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | |||||||||||||||||||||||||||
Summary of Operations | Summary of Operations | |||||||||||||||||||||||||||
Net interest income | $ | 314 | $ | 238 | $ | 206 | Net interest income | $ | 570 | $ | 410 | |||||||||||||||||
(Provision) benefit for loan losses | (2 | ) | (4 | ) | 10 | |||||||||||||||||||||||
Net interest income after (provision) benefit for loan losses | 312 | 234 | 216 | |||||||||||||||||||||||||
Provision for credit losses | Provision for credit losses | 3 | 20 | |||||||||||||||||||||||||
Net interest income after provision for credit losses | Net interest income after provision for credit losses | 567 | 390 | |||||||||||||||||||||||||
Net gain (loss) on loan sales | (12 | ) | (10 | ) | 6 | Net gain (loss) on loan sales | 2 | (14) | ||||||||||||||||||||
Loan fees and charges | Loan fees and charges | 1 | 1 | |||||||||||||||||||||||||
Loan administration expense | Loan administration expense | (3) | (3) | |||||||||||||||||||||||||
Other noninterest income | 40 | 31 | 28 | Other noninterest income | 61 | 62 | ||||||||||||||||||||||
Total noninterest income | 28 | 21 | 34 | Total noninterest income | 61 | 46 | ||||||||||||||||||||||
Compensation and benefits | (70 | ) | (62 | ) | (56 | ) | Compensation and benefits | 108 | 103 | |||||||||||||||||||
Other noninterest expense and directly allocated overhead | (110 | ) | (92 | ) | (89 | ) | ||||||||||||||||||||||
Commissions | Commissions | 2 | 2 | |||||||||||||||||||||||||
Loan processing expense | Loan processing expense | 5 | 6 | |||||||||||||||||||||||||
Other noninterest expense | Other noninterest expense | 271 | 165 | |||||||||||||||||||||||||
Total noninterest expense | (180 | ) | (154 | ) | (145 | ) | Total noninterest expense | 386 | 276 | |||||||||||||||||||
Income before indirect overhead allocations and income taxes | 160 | 101 | 105 | Income before indirect overhead allocations and income taxes | 242 | 160 | ||||||||||||||||||||||
Overhead allocations | (39 | ) | (41 | ) | (35 | ) | ||||||||||||||||||||||
(Provision) for income taxes | (25 | ) | (21 | ) | (24 | ) | ||||||||||||||||||||||
Indirect overhead allocation | Indirect overhead allocation | (40) | (41) | |||||||||||||||||||||||||
Provision for income taxes | Provision for income taxes | 42 | 24 | |||||||||||||||||||||||||
Net income | $ | 96 | $ | 39 | $ | 46 | Net income | $ | 160 | $ | 95 | |||||||||||||||||
Key Metrics | Key Metrics | |||||||||||||||||||||||||||
Efficiency Ratio | 52.5 | % | 59.5 | % | 60.4 | % | ||||||||||||||||||||||
Return on average assets | 1.1 | % | 0.6 | % | 0.8 | % | ||||||||||||||||||||||
Average number of FTE employees | 861 | 688 | 661 | |||||||||||||||||||||||||
Number of FTE employees | Number of FTE employees | 1,264 | 1,316 | |||||||||||||||||||||||||
Number of bank branches | Number of bank branches | 158 | 160 |
For the Years Ended December 31, | |||||||||||
Mortgage Originations | 2018 | 2017 | 2016 | ||||||||
(Dollars in millions) | |||||||||||
Summary of Operations | |||||||||||
Net interest income | $ | 128 | $ | 129 | $ | 90 | |||||
(Provision) benefit for loan losses | (2 | ) | (4 | ) | (2 | ) | |||||
Net interest income after (provision) benefit for loan losses | 126 | 125 | 88 | ||||||||
Net gain on loan sales | 212 | 278 | 310 | ||||||||
Other noninterest income | 101 | 92 | 43 | ||||||||
Total noninterest income | 313 | 370 | 353 | ||||||||
Compensation and benefits | (105 | ) | (100 | ) | (81 | ) | |||||
Other noninterest expense and directly allocated overhead | (161 | ) | (163 | ) | (123 | ) | |||||
Total noninterest expense | (266 | ) | (263 | ) | (204 | ) | |||||
Income before indirect overhead allocations and income taxes | 173 | 232 | 237 | ||||||||
Overhead allocation | (68 | ) | (63 | ) | (54 | ) | |||||
(Provision) for income taxes | (22 | ) | (59 | ) | (64 | ) | |||||
Net income | $ | 83 | $ | 110 | $ | 119 | |||||
Key Metrics | |||||||||||
Efficiency Ratio | 60.4 | % | 52.7 | % | 46.0 | % | |||||
Return on average assets | 1.5 | % | 2.0 | % | 2.7 | % | |||||
Mortgage rate lock commitments (fallout-adjusted) (1) | $ | 30,308 | $ | 32,527 | $ | 29,372 | |||||
Average number of FTE employees | 1,517 | 1,440 | 1,063 |
For the Years Ended December 31, | |||||||||||||||||
Mortgage Originations | 2020 | 2019 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Summary of Operations | |||||||||||||||||
Net interest income | $ | 191 | $ | 145 | |||||||||||||
(Benefit) provision for credit losses | (11) | 2 | |||||||||||||||
Net interest income after provision for credit losses | 202 | 143 | |||||||||||||||
Net gain on loan sales | 969 | 349 | |||||||||||||||
Loan fees and charges | 98 | 67 | |||||||||||||||
Loan administration expense | (35) | (24) | |||||||||||||||
Net return on mortgage servicing rights | 10 | 6 | |||||||||||||||
Other noninterest income | 8 | 12 | |||||||||||||||
Total noninterest income | 1,050 | 410 | |||||||||||||||
Compensation and benefits | 161 | 111 | |||||||||||||||
Commissions | 230 | 109 | |||||||||||||||
Loan processing expense | 55 | 36 | |||||||||||||||
Other noninterest expense | 136 | 90 | |||||||||||||||
Total noninterest expense | 582 | 346 | |||||||||||||||
Income before indirect overhead allocations and income taxes | 669 | 207 | |||||||||||||||
Indirect overhead allocation | (60) | (42) | |||||||||||||||
Provision for income taxes | 128 | 35 | |||||||||||||||
Net income | $ | 481 | $ | 130 | |||||||||||||
Key Metrics | |||||||||||||||||
Mortgage rate lock commitments (fallout-adjusted) (1)(2) | $ | 52,000 | $ | 32,300 | |||||||||||||
Noninterest expense to closing volume | 1.20 | % | 1.06 | % | |||||||||||||
Number of FTE employees | 2,001 | 1,512 |
At December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Correspondent | $ | 24,093 | $ | 25,769 | $ | 24,488 | $ | 20,543 | $ | 18,052 | |||||||||
Broker | 3,967 | 5,025 | 5,890 | 7,335 | 5,339 | ||||||||||||||
Retail | 4,405 | 3,614 | 2,039 | 1,490 | 1,194 | ||||||||||||||
Total | $ | 32,465 | $ | 34,408 | $ | 32,417 | $ | 29,368 | $ | 24,585 | |||||||||
Purchase originations | $ | 22,041 | $ | 19,357 | $ | 13,672 | $ | 13,696 | $ | 14,654 | |||||||||
Refinance originations | 10,424 | 15,051 | 18,745 | 15,672 | 9,931 | ||||||||||||||
Total | $ | 32,465 | $ | 34,408 | $ | 32,417 | $ | 29,368 | $ | 24,585 | |||||||||
Conventional | $ | 15,654 | $ | 16,962 | $ | 18,156 | $ | 17,571 | $ | 15,158 | |||||||||
Government | 9,329 | 8,635 | 7,859 | 6,385 | 6,134 | ||||||||||||||
Jumbo | 7,482 | 8,811 | 6,402 | 5,412 | 3,293 | ||||||||||||||
Total | $ | 32,465 | $ | 34,408 | $ | 32,417 | $ | 29,368 | $ | 24,585 |
At December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Correspondent | $ | 22,900 | $ | 21,800 | |||||||||||||
Broker | 11,000 | 4,100 | |||||||||||||||
Retail | 14,400 | 6,800 | |||||||||||||||
Total | $ | 48,300 | $ | 32,700 | |||||||||||||
Purchase closings | $ | 17,500 | $ | 17,100 | |||||||||||||
Refinance closings | 30,800 | 15,600 | |||||||||||||||
Total | $ | 48,300 | $ | 32,700 | |||||||||||||
Conventional | $ | 37,900 | $ | 19,400 | |||||||||||||
Government | 3,500 | 7,200 | |||||||||||||||
Jumbo | 6,900 | 6,100 | |||||||||||||||
Total | $ | 48,300 | $ | 32,700 |
For the Years Ended December 31, | |||||||||||
Mortgage Servicing | 2018 | 2017 | 2016 | ||||||||
(Dollars in millions) | |||||||||||
Summary of Operations | |||||||||||
Net interest income | $ | 7 | $ | 11 | $ | 21 | |||||
Noninterest income | 94 | 66 | 60 | ||||||||
Compensation and benefits | (19 | ) | (16 | ) | (15 | ) | |||||
Other noninterest expense and directly allocated overhead | (70 | ) | (61 | ) | (63 | ) | |||||
Total noninterest expense | (89 | ) | (77 | ) | (78 | ) | |||||
Income before indirect overhead allocations and income taxes | 12 | — | 3 | ||||||||
Overhead allocations | (20 | ) | (23 | ) | (23 | ) | |||||
Benefit for income taxes | 2 | 8 | 7 | ||||||||
Net loss | $ | (6 | ) | $ | (15 | ) | $ | (13 | ) | ||
Key Metrics | |||||||||||
Efficiency Ratio | 87.7 | % | 100.0 | % | 96.3 | % | |||||
Return on average assets | (18.0 | )% | (41.7 | )% | (46.4 | )% | |||||
Average number of residential loans serviced | 562,419 | 405,568 | 361,265 | ||||||||
Average number of FTE employees | 228 | 199 | 194 |
December 31, 2018 | December 31, 2017 | December 31, 2016 | ||||||||||||||||||
Unpaid Principal Balance (1) | Number of accounts | Unpaid Principal Balance (1) | Number of accounts | Unpaid Principal Balance (1) | Number of accounts | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Residential loan servicing | ||||||||||||||||||||
Subserviced for others (2) | $ | 146,040 | 705,149 | $ | 65,864 | 309,814 | $ | 43,127 | 220,075 | |||||||||||
Serviced for others | 21,592 | 88,434 | 25,073 | 103,137 | 31,207 | 133,270 | ||||||||||||||
Serviced for own loan portfolio (3) | 7,192 | 32,920 | 7,013 | 29,493 | 5,816 | 29,244 | ||||||||||||||
Total residential loans serviced | $ | 174,824 | 826,503 | $ | 97,950 | 442,444 | $ | 80,150 | 382,589 |
For the Years Ended December 31, | |||||||||||||||||
Mortgage Servicing | 2020 | 2019 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Summary of Operations | |||||||||||||||||
Net interest income | $ | 18 | $ | 16 | |||||||||||||
Loan fees and charges | 66 | 32 | |||||||||||||||
Loan administration income | 151 | 124 | |||||||||||||||
Total noninterest income | 217 | 156 | |||||||||||||||
Compensation and benefits | 46 | 28 | |||||||||||||||
Loan processing expense | 36 | 36 | |||||||||||||||
Other noninterest expense | 79 | 59 | |||||||||||||||
Total noninterest expense | 161 | 123 | |||||||||||||||
Income before indirect overhead allocations and income taxes | 74 | 49 | |||||||||||||||
Indirect overhead allocation | (19) | (18) | |||||||||||||||
Provision for income taxes | 12 | 6 | |||||||||||||||
Net income | $ | 43 | $ | 25 | |||||||||||||
Key Metrics | |||||||||||||||||
Average number of residential loans serviced | 1,088,028 | 975,851 | |||||||||||||||
Number of FTE employees | 630 | 480 |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||
Unpaid Principal Balance (1) | Number of Accounts | Unpaid Principal Balance (1) | Number of Accounts | |||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Loan Servicing | ||||||||||||||||||||||||||
Subserviced for others (2) | $ | 178,606 | 867,799 | $ | 194,638 | 918,662 | ||||||||||||||||||||
Serviced for others (3) | 38,026 | 151,081 | 24,003 | 105,469 | ||||||||||||||||||||||
Serviced for own loan portfolio (4) | 10,079 | 66,519 | 9,536 | 66,526 | ||||||||||||||||||||||
Total residential loans serviced | $ | 226,711 | 1,085,399 | $ | 228,177 | 1,090,657 |
At December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(Dollars in millions) | |||||||||||
Average UPB per loan | $ | 244 | $ | 243 | $ | 234 | |||||
Weighted average service fee (basis points) | 36.0 | 28.8 | 26.6 | ||||||||
Weighted average coupon | 4.38 | % | 4.05 | % | 3.88 | % | |||||
Weighted average original maturity (months) | 352 | 330 | 325 | ||||||||
Weighted average age (months) | 13 | 11 | 15 | ||||||||
Average current FICO score (1) | 697 | 728 | 746 | ||||||||
Average original LTV ratio | 88.6 | % | 77.7 | % | 71.9 | % | |||||
Housing Price Index LTV, as recalculated (2) | 83.1 | % | 73.3 | % | 65.6 | % | |||||
Delinquencies: | |||||||||||
30-59 days past due | $ | 535 | $ | 250 | $ | 155 | |||||
60-89 days past due | 153 | 71 | 26 | ||||||||
90 days or greater past due | 126 | 125 | 102 | ||||||||
Total past due | $ | 814 | $ | 446 | $ | 283 |
At December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Average UPB per loan | $ | 252 | $ | 228 | |||||||||||||
Weighted average service fee (basis points) | 33.6 | 39.9 | |||||||||||||||
Weighted average coupon | 3.66 | % | 4.39 | % | |||||||||||||
Weighted average original maturity (months) | 337 | 350 | |||||||||||||||
Weighted average age (months) | 16 | 19 | |||||||||||||||
Average updated FICO score | 731 | 701 | |||||||||||||||
Average original LTV ratio | 78.4 | % | 86.8 | % | |||||||||||||
Housing Price Index LTV, as recalculated (1) | 72.2 | % | 79.1 | % | |||||||||||||
Payment Status (UPB) (2): | |||||||||||||||||
30-59 days past due | $ | 623 | $ | 727 | |||||||||||||
60-89 days past due | 333 | 225 | |||||||||||||||
90 days or greater past due | 2,496 | 134 | |||||||||||||||
Total past due | $ | 3,452 | $ | 1,086 |
At December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||
Payment Status (UPB) (1): | |||||||||||||||||
30-59 days past due | $ | 3,052 | $ | 3,752 | |||||||||||||
60-89 days past due | 1,357 | 1,001 | |||||||||||||||
90 days or greater past due | 11,530 | 1,948 | |||||||||||||||
Total past due | $ | 15,939 | $ | 6,701 |
At December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(Dollars in millions) | |||||||||||
Average UPB per loan (thousands) | $ | 207 | $ | 213 | $ | 196 | |||||
Weighted average service fee (basis points) | 29.3 | 28.3 | 31.0 | ||||||||
Weighted average coupon | 3.99 | % | 3.85 | % | 3.83 | % | |||||
Weighted average original maturity (months) | 268 | 307 | 337 | ||||||||
Weighted average age (months) | 38 | 36 | 39 | ||||||||
Average current FICO score (1) | 738 | 734 | 728 | ||||||||
Average original LTV ratio | 51.3 | % | 71.1 | % | 81.1 | % | |||||
Housing Price Index LTV, as recalculated (2) | 67.8 | % | 62.4 | % | 65.3 | % | |||||
Delinquencies: | |||||||||||
30-59 days past due | $ | 3,745 | $ | 954 | $ | 614 | |||||
60-89 days past due | 866 | 276 | 164 | ||||||||
90 days or greater past due | 1,620 | 692 | 441 | ||||||||
Total past due | $ | 6,231 | $ | 1,922 | $ | 1,219 |
For the Years Ended December 31, | |||||||||||
Other | 2018 | 2017 | 2016 | ||||||||
(Dollars in millions) | |||||||||||
Summary of Operations | |||||||||||
Net interest income (1) | $ | 48 | $ | 12 | $ | 6 | |||||
(Provision) benefit for loan losses | 12 | 2 | — | ||||||||
Net interest income after (provision) benefit for loan losses | 60 | 14 | 6 | ||||||||
Noninterest income (1) | 4 | 13 | 40 | ||||||||
Compensation and benefits | (124 | ) | (121 | ) | (117 | ) | |||||
Other noninterest expense and directly allocated overhead (1) | (53 | ) | (28 | ) | (16 | ) | |||||
Total noninterest expense | (177 | ) | (149 | ) | (133 | ) | |||||
Income (loss) before indirect overhead allocations and income taxes | (113 | ) | (122 | ) | (87 | ) | |||||
Overhead allocations | 127 | 127 | 112 | ||||||||
(Provision) benefit for income taxes | — | (76 | ) | (6 | ) | ||||||
Net income (loss) | $ | 14 | $ | (71 | ) | $ | 19 | ||||
Key Metrics | |||||||||||
Average number of FTE employees | 1,049 | 976 | 932 |
For the Years Ended December 31, | |||||||||||||||||
Other | 2020 | 2019 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Summary of Operations | |||||||||||||||||
Net interest income | $ | (94) | $ | (9) | |||||||||||||
Provision (benefit) for credit losses | 157 | (4) | |||||||||||||||
Net interest income after provision (benefit) for credit losses | (251) | (5) | |||||||||||||||
Loan administration income | (29) | (67) | |||||||||||||||
Other noninterest income | 26 | 65 | |||||||||||||||
Total noninterest income | (3) | (2) | |||||||||||||||
Compensation and benefits | 151 | 135 | |||||||||||||||
Loan processing expense | 2 | 2 | |||||||||||||||
Other noninterest expense | (125) | 6 | |||||||||||||||
Total noninterest expense | 28 | 143 | |||||||||||||||
Income before indirect overhead allocations and income taxes | (281) | (150) | |||||||||||||||
Indirect overhead allocation | 119 | 101 | |||||||||||||||
Benefit for income taxes | (16) | (17) | |||||||||||||||
Net loss | $ | (146) | $ | (32) | |||||||||||||
Key Metrics | |||||||||||||||||
Number of FTE employees | 1,319 | 1,144 |
At December 31, | ||||||||||||||||||||||||||
2020 | % of Total | 2019 | % of Total | 2018 | % of Total | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||||
Residential first mortgage | $ | 2,266 | 14.0 | % | $ | 3,154 | 26.0 | % | $ | 2,999 | 33.0 | % | ||||||||||||||
Home equity (1) | 856 | 5.2 | % | 1,024 | 8.4 | % | 731 | 8.0 | % | |||||||||||||||||
Other | 1,004 | 6.2 | % | 729 | 6.0 | % | 314 | 3.5 | % | |||||||||||||||||
Total consumer loans | 4,126 | 25.4 | % | 4,907 | 40.4 | % | 4,044 | 44.5 | % | |||||||||||||||||
Commercial loans | ||||||||||||||||||||||||||
Commercial real estate | 3,061 | 18.9 | % | 2,828 | 23.3 | % | 2,152 | 23.6 | % | |||||||||||||||||
Commercial and industrial | 1,382 | 8.5 | % | 1,634 | 13.5 | % | 1,433 | 15.8 | % | |||||||||||||||||
Warehouse lending | 7,658 | 47.2 | % | 2,760 | 22.8 | % | 1,459 | 16.1 | % | |||||||||||||||||
Total commercial loans | 12,101 | 74.6 | % | 7,222 | 59.6 | % | 5,044 | 55.5 | % | |||||||||||||||||
Total loans held-for-investment | $ | 16,227 | 100.0 | % | $ | 12,129 | 100.0 | % | $ | 9,088 | 100.0 | % |
At December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Consumer loans | |||||||||||||||||||
Residential first mortgage | $ | 2,999 | $ | 2,754 | $ | 2,327 | $ | 3,100 | $ | 2,193 | |||||||||
Home equity (1) | 731 | 664 | 443 | 519 | 406 | ||||||||||||||
Other | 314 | 25 | 28 | 31 | 31 | ||||||||||||||
Total consumer loans | 4,044 | 3,443 | 2,798 | 3,650 | 2,630 | ||||||||||||||
Commercial loans | |||||||||||||||||||
Commercial real estate | 2,152 | 1,932 | 1,261 | 814 | 620 | ||||||||||||||
Commercial and industrial | 1,433 | 1,196 | 769 | 552 | 429 | ||||||||||||||
Warehouse lending | 1,459 | 1,142 | 1,237 | 1,336 | 769 | ||||||||||||||
Total commercial loans | 5,044 | 4,270 | 3,267 | 2,702 | 1,818 | ||||||||||||||
Total loans held-for-investment | $ | 9,088 | $ | 7,713 | $ | 6,065 | $ | 6,352 | $ | 4,448 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Balance, beginning of year | $ | 12,129 | $ | 9,088 | $ | 7,713 | |||||||||||
Loans originated and purchased | 1,992 | 3,268 | 2,113 | ||||||||||||||
Change in lines of credit | 9,663 | 6,381 | 3,973 | ||||||||||||||
Loan amortization / prepayments | (7,001) | (6,480) | (4,425) | ||||||||||||||
All other activity | (556) | (128) | (286) | ||||||||||||||
Balance, end of year | $ | 16,227 | $ | 12,129 | $ | 9,088 |
For the Years Ended December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Balance, beginning of year | $ | 7,713 | $ | 6,065 | $ | 6,352 | $ | 4,448 | $ | 4,056 | |||||||||
Loans originated and purchased | 2,113 | 2,170 | 1,771 | 2,975 | 894 | ||||||||||||||
Change in lines of credit | 3,973 | 2,982 | 957 | 678 | 424 | ||||||||||||||
Loans transferred from loans held-for-sale | — | 1 | 2 | 32 | 56 | ||||||||||||||
Loans transferred to loans held-for-sale | (279 | ) | (130 | ) | (1,309 | ) | (1,198 | ) | (509 | ) | |||||||||
Loan amortization / prepayments | (4,425 | ) | (3,373 | ) | (1,700 | ) | (569 | ) | (451 | ) | |||||||||
Loans transferred to repossessed assets | (7 | ) | (2 | ) | (8 | ) | (14 | ) | (22 | ) | |||||||||
Balance, end of year | $ | 9,088 | $ | 7,713 | $ | 6,065 | $ | 6,352 | $ | 4,448 |
At December 31, | |||||||
2018 | 2017 | ||||||
(Dollars in millions) | |||||||
Estimated LTVs (1) | |||||||
Less than 80% and refreshed FICO scores (2): | |||||||
Equal to or greater than 660 | $ | 2,462 | $ | 2,496 | |||
Less than 660 | 54 | 66 | |||||
80% and greater and refreshed FICO scores (2): | |||||||
Equal to or greater than 660 | 448 | 179 | |||||
Less than 660 | 29 | 10 | |||||
U.S. government guaranteed | 6 | 3 | |||||
Total | $ | 2,999 | $ | 2,754 | |||
Geographic region | |||||||
California | $ | 1,238 | $ | 1,125 | |||
Michigan | 314 | 265 | |||||
Washington | 195 | 168 | |||||
Florida | 195 | 200 | |||||
Texas | 193 | 182 | |||||
Illinois | 103 | 101 | |||||
New York | 73 | 62 | |||||
Arizona | 72 | 76 | |||||
Colorado | 72 | 68 | |||||
Maryland | 57 | 64 | |||||
Others | 487 | 443 | |||||
Total | $ | 2,999 | $ | 2,754 |
At December 31, | |||||||||||
2020 | 2019 | ||||||||||
(Dollars in millions) | |||||||||||
Estimated LTVs (1) | |||||||||||
Less than 80% and refreshed current FICO scores (2): | |||||||||||
Equal to or greater than 660 | $ | 1,408 | $ | 2,263 | |||||||
Less than 660 | 65 | 93 | |||||||||
80% and greater and refreshed current FICO scores (2): | |||||||||||
Equal to or greater than 660 | 685 | 687 | |||||||||
Less than 660 | 108 | 111 | |||||||||
Total | $ | 2,266 | $ | 3,154 | |||||||
Geographic region | |||||||||||
California | $ | 806 | $ | 1,205 | |||||||
Michigan | 435 | 442 | |||||||||
Texas | 150 | 214 | |||||||||
Washington | 126 | 205 | |||||||||
Florida | 108 | 181 | |||||||||
Colorado | 57 | 84 | |||||||||
New York | 55 | 68 | |||||||||
Illinois | 51 | 95 | |||||||||
Arizona | 50 | 79 | |||||||||
New Jersey | 34 | 44 | |||||||||
Other | 394 | 537 | |||||||||
Total | $ | 2,266 | $ | 3,154 |
2020 | 2019 | 2018 | 2017 | 2016 and Prior | Total | ||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Residential first mortgage loans | $ | 382 | $ | 586 | $ | 261 | $ | 307 | $ | 730 | $ | 2,266 | |||||||||||||||||||||||
Percent of total | 16.9 | % | 25.9 | % | 11.5 | % | 13.5 | % | 32.2 | % | 100.0 | % |
2018 | 2017 | 2016 | 2015 | 2014 and Prior | Total | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Residential first mortgage loans | $ | 679 | $ | 729 | $ | 570 | $ | 646 | $ | 375 | $ | 2,999 | |||||||||||
Percent of total | 22.6 | % | 24.3 | % | 19.0 | % | 21.5 | % | 12.5 | % | 100.0 | % |
December 31, 2020 | December 31, 2019 | ||||||||||||||||
Balance | % of Portfolio | Balance | % of Portfolio | ||||||||||||||
(Dollars in millions) | |||||||||||||||||
Indirect lending | $ | 744 | 74 | % | $ | 577 | 79 | % | |||||||||
Point of sale | 211 | 21 | % | 63 | 9 | % | |||||||||||
Other | 49 | 5 | % | 89 | 12 | % | |||||||||||
Total other consumer loans | $ | 1,004 | 100 | % | $ | 729 | 100 | % |
At December 31, | |||||||
2018 | 2017 | ||||||
(Dollars in millions) | |||||||
Commitments | $ | 1,422 | $ | 1,284 | |||
Outstanding balance (UPB) | |||||||
Commercial real estate | $ | 591 | $ | 497 | |||
Commercial and industrial | 127 | 104 | |||||
Total outstanding balance (UPB) | $ | 718 | $ | 601 |
MI | TX | CA | OH | FL | Other | Total | % by collateral type | |||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||
Home builder | $ | 29 | $ | 170 | $ | 114 | $ | — | $ | 100 | $ | 309 | $ | 722 | 23.6 | % | ||||||||||
Owner occupied | 288 | 3 | 27 | 6 | 1 | 46 | 371 | 12.1 | % | |||||||||||||||||
Multi family | 220 | 93 | 45 | 45 | 18 | 102 | 523 | 17.1 | % | |||||||||||||||||
Retail (1) | 162 | — | 6 | 55 | — | 64 | 287 | 9.4 | % | |||||||||||||||||
Office | 187 | 19 | — | 4 | 2 | 70 | 282 | 9.2 | % | |||||||||||||||||
Hotel | 143 | — | 25 | 22 | — | 89 | 279 | 9.1 | % | |||||||||||||||||
Senior living facility | 78 | 26 | — | 35 | 6 | 39 | 184 | 6.0 | % | |||||||||||||||||
Industrial | 56 | — | 27 | — | 8 | 33 | 124 | 4.1 | % | |||||||||||||||||
Parking garage/lot | 48 | 9 | 1 | — | 1 | 35 | 94 | 3.1 | % | |||||||||||||||||
Land - residential (2) | 5 | — | 7 | — | 3 | 6 | 21 | 0.7 | % | |||||||||||||||||
Shopping mall | — | — | 15 | — | — | — | 15 | 0.5 | % | |||||||||||||||||
Single family residence (3) | 2 | — | — | — | — | 2 | 4 | 0.1 | % | |||||||||||||||||
All other (4) | 14 | 48 | 24 | — | 19 | 50 | 155 | 5.0 | % | |||||||||||||||||
Total | $ | 1,232 | $ | 368 | $ | 291 | $ | 167 | $ | 158 | $ | 845 | $ | 3,061 | 100.0 | % | ||||||||||
Percent by state | 40.2 | % | 12.0 | % | 9.5 | % | 5.5 | % | 5.2 | % | 27.6 | % | 100.0 | % |
MI | TX | CO | CA | FL | Other | Total | % by collateral type | |||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||
Single family residence (1) | $ | 17 | $ | 102 | $ | 130 | $ | 67 | $ | 79 | $ | 63 | $ | 458 | 21.3 | % | ||||||||||||||
Owner occupied | 261 | 4 | — | 27 | 5 | 55 | 352 | 16.4 | % | |||||||||||||||||||||
Retail (2) | 185 | 1 | 4 | 7 | — | 99 | 296 | 13.8 | % | |||||||||||||||||||||
Multi family | 106 | 35 | 18 | 7 | 37 | 40 | 243 | 11.3 | % | |||||||||||||||||||||
Office | 175 | — | — | 16 | 3 | 21 | 215 | 10.0 | % | |||||||||||||||||||||
Land - Residential (3) | 4 | 45 | 19 | 27 | 26 | 47 | 168 | 7.8 | % | |||||||||||||||||||||
Hotel/motel | 92 | 17 | — | 9 | — | 33 | 151 | 7.0 | % | |||||||||||||||||||||
Senior Living facility | 17 | 25 | — | — | — | 65 | 107 | 5.0 | % | |||||||||||||||||||||
Industrial | 47 | — | — | — | — | 37 | 84 | 3.9 | % | |||||||||||||||||||||
All other (4) | 37 | 3 | 1 | 2 | 8 | 27 | 78 | 3.5 | % | |||||||||||||||||||||
Total | $ | 941 | $ | 232 | $ | 172 | $ | 162 | $ | 158 | $ | 487 | $ | 2,152 | 100.0 | % | ||||||||||||||
Percent by state | 43.7 | % | 10.8 | % | 8.0 | % | 7.5 | % | 7.3 | % | 22.7 | % | 100.0 | % |
MI | CA | OH | IN | WI | TX | MN | NY | FL | CT | Other | Total | % by industry | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Financial & Insurance | $ | 39 | $ | 19 | $ | 19 | $ | 13 | $ | 1 | $ | 30 | $ | 43 | $ | 82 | $ | 74 | $ | 5 | $ | 136 | $ | 461 | 33.5 | % | |||||||||||||||
Services | 114 | 11 | 2 | 4 | — | 34 | 21 | — | — | 42 | 67 | 295 | 21.3 | % | |||||||||||||||||||||||||||
Manufacturing | 156 | 6 | 30 | 1 | 8 | 12 | — | — | — | — | 64 | 277 | 20.0 | % | |||||||||||||||||||||||||||
Home Builder Finance | — | 12 | — | — | — | 47 | — | — | 1 | — | — | 60 | 4.3 | % | |||||||||||||||||||||||||||
Rental & Leasing | 84 | — | — | — | — | — | — | — | — | — | 32 | 116 | 8.4 | % | |||||||||||||||||||||||||||
Distribution | 85 | 13 | 1 | 2 | — | — | — | — | — | — | 14 | 115 | 8.3 | % | |||||||||||||||||||||||||||
Healthcare | 2 | 14 | 1 | — | — | — | — | — | — | — | 3 | 20 | 1.4 | % | |||||||||||||||||||||||||||
Government & Education | 3 | 2 | — | — | — | — | — | — | — | 13 | — | 18 | 1.3 | % | |||||||||||||||||||||||||||
Servicing Advances | — | — | — | — | — | — | — | — | — | — | 16 | 16 | 1.2 | % | |||||||||||||||||||||||||||
Commodities | 1 | — | — | 1 | — | — | — | — | — | — | 2 | 4 | 0.3 | % | |||||||||||||||||||||||||||
Total | $ | 484 | $ | 77 | $ | 53 | $ | 21 | $ | 9 | $ | 123 | $ | 64 | $ | 82 | $ | 75 | $ | 60 | $ | 334 | 1,382 | 100.0 | % | ||||||||||||||||
Percent by state | 35.0 | % | 5.6 | % | 3.8 | % | 1.5 | % | 0.7 | % | 8.9 | % | 4.6 | % | 5.9 | % | 5.4 | % | 4.3 | % | 24.3 | % | 100.0 | % |
MI | CA | OH | IN | WI | TX | FL | CT | Other | Total | % by industry | ||||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||
Financial & Insurance | $ | 33 | $ | 2 | $ | 16 | $ | 16 | $ | 21 | $ | — | $ | 68 | $ | 6 | $ | 197 | $ | 359 | 25.0 | % | ||||||||||||||||||||
Services | 103 | 45 | 3 | 7 | 1 | 19 | 2 | 44 | 67 | 291 | 20.3 | % | ||||||||||||||||||||||||||||||
Manufacturing | 108 | 5 | 40 | 1 | 5 | 13 | — | — | 97 | 269 | 18.8 | % | ||||||||||||||||||||||||||||||
Home Builder Finance | — | 4 | 6 | — | — | 78 | 3 | — | 36 | 127 | 8.9 | % | ||||||||||||||||||||||||||||||
Healthcare | 2 | 14 | 1 | 1 | 19 | 9 | 1 | — | 58 | 105 | 7.3 | % | ||||||||||||||||||||||||||||||
Distribution | 78 | 19 | 2 | 2 | — | — | — | — | — | 101 | 7.0 | % | ||||||||||||||||||||||||||||||
Government & Education | 33 | 4 | — | 23 | — | — | — | 23 | — | 83 | 5.8 | % | ||||||||||||||||||||||||||||||
Rental & Leasing | 57 | — | — | 1 | — | — | — | — | 13 | 71 | 5.0 | % | ||||||||||||||||||||||||||||||
Servicing Advances | — | — | — | — | — | — | — | — | 16 | 16 | 1.1 | % | ||||||||||||||||||||||||||||||
Commodities | 5 | — | — | 1 | — | — | — | — | 5 | 11 | 0.8 | % | ||||||||||||||||||||||||||||||
Total | $ | 419 | $ | 93 | $ | 68 | $ | 52 | $ | 46 | $ | 119 | $ | 74 | $ | 73 | $ | 489 | $ | 1,433 | 100.0 | % | ||||||||||||||||||||
Percent by state | 29.2 | % | 6.5 | % | 4.7 | % | 3.6 | % | 3.2 | % | 8.3 | % | 5.2 | % | 5.1 | % | 34.1 | % | 100.0 | % |
For the Years Ended December 31, | |||||||
2018 | 2017 | ||||||
(Dollars in millions) | |||||||
UPB of warehouse loans sold to the bank | $ | 8,590 | $ | 10,824 | |||
Loans sold to the bank as a percentage of advances | 25.5 | % | 37.4 | % |
December 31, 2020 | |||||||||||||||||||||||||||||
Within 1 Year | 1 Year to 5 Years | 5 Years to 15 Years | Over 15 Years | Totals (1) | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Fixed Rate Loans | |||||||||||||||||||||||||||||
Residential first mortgage | $ | 13 | $ | 55 | $ | 147 | $ | 239 | $ | 454 | |||||||||||||||||||
Home equity | 5 | 22 | 56 | — | 83 | ||||||||||||||||||||||||
Other consumer | 43 | 203 | 727 | — | 973 | ||||||||||||||||||||||||
Commercial real estate | 32 | 99 | — | — | 131 | ||||||||||||||||||||||||
Commercial and industrial | 27 | 124 | 1 | — | 152 | ||||||||||||||||||||||||
Commercial lease financing | 2 | 4 | — | — | 6 | ||||||||||||||||||||||||
Total fixed rate loans | $ | 122 | $ | 507 | $ | 931 | $ | 239 | $ | 239 | $ | 1,799 | |||||||||||||||||
Adjustable Rate Loans | |||||||||||||||||||||||||||||
Residential first mortgage | $ | 42 | $ | 185 | $ | 604 | $ | 964 | $ | 1,795 | |||||||||||||||||||
Home equity | 14 | 62 | 217 | 464 | 757 | ||||||||||||||||||||||||
Commercial real estate | 1,158 | 1,776 | — | — | 2,934 | ||||||||||||||||||||||||
Commercial and industrial | 432 | 792 | — | — | 1,224 | ||||||||||||||||||||||||
Warehouse lending | 7,931 | — | — | — | 7,931 | ||||||||||||||||||||||||
Total adjustable rate loans | $ | 9,577 | $ | 2,815 | $ | 821 | $ | 1,428 | $ | 14,641 |
December 31, 2018 | |||||||||||||||
Within 1 Year | 1 Year to 5 Years | Over 5 Years | Totals (1) | ||||||||||||
(Dollars in millions) | |||||||||||||||
Fixed Rate Loans | |||||||||||||||
Residential first mortgage | $ | 13 | $ | 41 | $ | 234 | $ | 288 | |||||||
Home Equity | 7 | 31 | 70 | 108 | |||||||||||
Other consumer | 18 | 69 | 223 | 310 | |||||||||||
Commercial real estate | 17 | 64 | — | 81 | |||||||||||
Commercial and industrial | 48 | 205 | 61 | 314 | |||||||||||
Total fixed rate loans | $ | 103 | $ | 410 | $ | 588 | $ | 1,101 | |||||||
Adjustable Rate Loans | |||||||||||||||
Residential first mortgage | $ | 58 | $ | 257 | $ | 2,373 | $ | 2,688 | |||||||
Home Equity | 9 | 41 | 561 | 611 | |||||||||||
Commercial real estate | 630 | 1,466 | — | 2,096 | |||||||||||
Commercial and industrial | 227 | 893 | — | 1,120 | |||||||||||
Warehouse lending | 1,506 | — | — | 1,506 | |||||||||||
Total adjustable rate loans | $ | 2,430 | $ | 2,657 | $ | 2,934 | $ | 8,021 |
At December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
LHFI | |||||||||||||||||
Residential first mortgages | $ | 23 | $ | 13 | $ | 11 | |||||||||||
Home equity | 3 | 2 | 1 | ||||||||||||||
Other consumer | 2 | 1 | — | ||||||||||||||
CRE | 3 | — | — | ||||||||||||||
C&I | 15 | — | — | ||||||||||||||
Total nonperforming LHFI | 46 | 16 | 12 | ||||||||||||||
TDRs | |||||||||||||||||
Residential first mortgages | 8 | 8 | 8 | ||||||||||||||
Home equity | 2 | 2 | 2 | ||||||||||||||
Total nonperforming TDRs | 10 | 10 | 10 | ||||||||||||||
Total nonperforming LHFI and TDRs (1) | 56 | 26 | 22 | ||||||||||||||
Real estate and other nonperforming assets, net | 8 | 10 | 7 | ||||||||||||||
LHFS | 9 | 5 | 10 | ||||||||||||||
Total nonperforming assets | $ | 73 | $ | 41 | $ | 39 | |||||||||||
Nonperforming assets to total assets (2) | 0.21 | % | 0.15 | % | 0.16 | % | |||||||||||
Nonperforming LHFI and TDRs to LHFI | 0.34 | % | 0.21 | % | 0.24 | % | |||||||||||
Nonperforming assets to LHFI and repossessed assets (2) | 0.40 | % | 0.30 | % | 0.32 | % |
At December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
LHFI | |||||||||||||||||||
Consumer Loans | |||||||||||||||||||
Residential first mortgages | $ | 11 | $ | 12 | $ | 18 | $ | 27 | $ | 72 | |||||||||
Home equity | 1 | 1 | 4 | 2 | 2 | ||||||||||||||
Commercial Loans | |||||||||||||||||||
Commercial and industrial | — | — | — | 2 | — | ||||||||||||||
Total nonperforming LHFI | 12 | 13 | 22 | 31 | 74 | ||||||||||||||
TDRs | |||||||||||||||||||
Consumer Loans | |||||||||||||||||||
Residential first mortgages | 8 | 12 | 11 | 27 | 43 | ||||||||||||||
Home equity | 2 | 4 | 7 | 8 | 3 | ||||||||||||||
Total nonperforming TDRs | 10 | 16 | 18 | 35 | 46 | ||||||||||||||
Total nonperforming LHFI and TDRs (1) | 22 | 29 | 40 | 66 | 120 | ||||||||||||||
Real estate and other nonperforming assets, net | 7 | 8 | 14 | 17 | 19 | ||||||||||||||
LHFS | 10 | 9 | 6 | 12 | 15 | ||||||||||||||
Total nonperforming assets | $ | 39 | $ | 46 | $ | 60 | $ | 95 | $ | 154 | |||||||||
Nonperforming assets to total assets (2) | 0.16 | % | 0.22 | % | 0.39 | % | 0.61 | % | 1.41 | % | |||||||||
Nonperforming LHFI and TDRs to LHFI | 0.24 | % | 0.38 | % | 0.67 | % | 1.05 | % | 2.71 | % | |||||||||
Nonperforming assets to LHFI and repossessed assets (2) | 0.32 | % | 0.48 | % | 0.90 | % | 1.32 | % | 3.12 | % |
For the Three Months Ended, | For the Year Ended, | ||||||||||||||||
December 31, 2020 | September 30, 2020 | December 31, 2020 | December 31, 2019 | ||||||||||||||
(Dollars in millions) | |||||||||||||||||
Beginning balance | $ | 45 | $ | 33 | $ | 26 | $ | 22 | |||||||||
Additions | 15 | 17 | 54 | 88 | |||||||||||||
Reductions | — | 1 | 1 | — | |||||||||||||
Principal payments | (3) | (3) | (14) | (44) | |||||||||||||
Charge-offs | (1) | (2) | (5) | (36) | |||||||||||||
Return to performing status | — | (1) | (6) | (2) | |||||||||||||
Transfers to REO | — | — | (2) | ||||||||||||||
Total nonperforming LHFI and TDRs (1) | $ | 56 | $ | 45 | $ | 56 | $ | 26 |
For the Years Ended December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Nonperforming loans | $ | — | $ | 14 | $ | 110 | $ | 109 | $ | 62 | |||||||||
TDRs | — | 11 | — | 327 | 30 | ||||||||||||||
Total sales of nonperforming loans and TDRs | $ | — | $ | 25 | $ | 110 | $ | 436 | $ | 92 |
For the Years Ended December 31, | As of December 31, | |||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | |||||||||||||||||||||||||||||||||||
Performing loans past due 30-89: | Performing loans past due 30-89: | |||||||||||||||||||||||||||||||||||
Consumer loans | Consumer loans | |||||||||||||||||||||||||||||||||||
Residential first mortgage | $ | 6 | $ | 4 | $ | 6 | $ | 10 | $ | 37 | Residential first mortgage | $ | 8 | $ | 9 | $ | 6 | |||||||||||||||||||
Home equity | 1 | 1 | 3 | 3 | 7 | Home equity | 2 | 1 | 1 | |||||||||||||||||||||||||||
Other | — | — | 1 | 1 | — | |||||||||||||||||||||||||||||||
Other consumer | Other consumer | 5 | 4 | — | ||||||||||||||||||||||||||||||||
Total consumer loans | Total consumer loans | 15 | 14 | 7 | ||||||||||||||||||||||||||||||||
CRE | CRE | 20 | — | — | ||||||||||||||||||||||||||||||||
C&I | C&I | 2 | — | — | ||||||||||||||||||||||||||||||||
Total commercial loans | Total commercial loans | 22 | — | — | ||||||||||||||||||||||||||||||||
Total performing loans past due 30-89 days | $ | 7 | $ | 5 | $ | 10 | $ | 14 | $ | 44 | Total performing loans past due 30-89 days | $ | 37 | $ | 14 | $ | 7 |
As of December 31, 2020 | As of September 30, 2020 | ||||||||||||||||||||||
Number of Borrowers | UPB | Percent of Portfolio | Number of Borrowers | UPB | Percent of Portfolio | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Loans Held-For-Investment | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Residential first mortgage | 697 | $ | 209 | 9.3 | % | 819 | $ | 255 | 10.4 | % | |||||||||||||
Home equity | 315 | 28 | 3.4 | % | 821 | 62 | 6.9 | % | |||||||||||||||
Other consumer | 418 | 14 | 1.4 | % | 887 | 40 | 4.2 | % | |||||||||||||||
Total consumer loan deferrals/forbearance | 1,430 | $ | 251 | 6.2 | % | 2,527 | $ | 357 | 8.3 | % | |||||||||||||
Loans Held-For-Sale | |||||||||||||||||||||||
Residential first mortgage | 80 | $ | 39 | 6.8 | % | 142 | $ | 71 | 1.6 | % |
As of December 31, 2020 | As of September 30, 2020 | ||||||||||||||||||||||
Number of Borrowers | UPB | Percent of Portfolio | Number of Borrowers | UPB | Percent of Portfolio | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Loans Held-For-Investment | |||||||||||||||||||||||
Automotive | — | $ | — | — | % | 1 | $ | 1 | 1.5 | % | |||||||||||||
Leisure & entertainment | — | — | — | % | 2 | — | 0.1 | % | |||||||||||||||
Other | 1 | — | — | % | 11 | 7 | 0.6 | % | |||||||||||||||
Total C&I deferrals | 1 | — | — | % | 14 | 8 | 0.6 | % | |||||||||||||||
Hotel | 1 | 14 | 5.0 | % | 3 | 28 | 10.8 | % | |||||||||||||||
Land | 1 | 5 | 21.2 | % | — | — | — | % | |||||||||||||||
Other | 2 | 3 | 2.2 | % | 7 | 11 | 0.4 | % | |||||||||||||||
Total CRE deferrals | 4 | 22 | — | % | 10 | 39 | 1.3 | % | |||||||||||||||
Total commercial loan deferrals (1) | 5 | $ | 22 | — | % | 24 | $ | 47 | 1.0 | % |
Loans in Forbearance | |||||||||||||||||||||||||||||||||||
Borrowers making October, November and December Payments | Remaining Borrowers | Total Loans in Forbearance | |||||||||||||||||||||||||||||||||
Total Population | |||||||||||||||||||||||||||||||||||
Unpaid Principal Balance (1) | Number of accounts | Unpaid Principal Balance (1) | Number of accounts | Unpaid Principal Balance (1) | Number of accounts | Percent of UPB | Percent of Accounts | ||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Loan Servicing | |||||||||||||||||||||||||||||||||||
Subserviced for others (2) | $ | 178,614 | 867,825 | $ | 1,785 | 8,851 | $ | 13,036 | 59,704 | 8.3 | % | 7.9 | % | ||||||||||||||||||||||
Serviced for others (3) (4) | 38,014 | 151,038 | 402 | 1,773 | 3,023 | 12,343 | 9.0 | % | 9.3 | % | |||||||||||||||||||||||||
Serviced for own loan portfolio (5) | 10,083 | 66,536 | 69 | 574 | 487 | 2,064 | 5.5 | % | 4.0 | % | |||||||||||||||||||||||||
Total loans serviced | $ | 226,711 | 1,085,399 | $ | 2,256 | 11,198 | $ | 16,546 | 74,111 | 8.3 | % | 7.9 | % |
Loans in Forbearance | |||||||||||||||||||||||||||||||||||
Borrowers making July, August and September Payments | Remaining Borrowers | Total Loans in Forbearance | |||||||||||||||||||||||||||||||||
Total Population | |||||||||||||||||||||||||||||||||||
Unpaid Principal Balance (1) | Number of accounts | Unpaid Principal Balance (1) | Number of accounts | Unpaid Principal Balance (1) | Number of accounts | Percent of UPB | Percent of Accounts | ||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Loan Servicing | |||||||||||||||||||||||||||||||||||
Subserviced for others (2) | $ | 180,981 | 893,559 | $ | 5,654 | 26,529 | $ | 15,103 | 67,192 | 11.5 | % | 10.5 | % | ||||||||||||||||||||||
Serviced for others (3)(4) | 37,908 | 148,868 | 950 | 3,908 | 3,081 | 12,217 | 10.6 | % | 10.8 | % | |||||||||||||||||||||||||
Serviced for own loan portfolio (5) | 8,469 | 62,486 | 196 | 1,792 | 468 | 1,886 | 7.8 | % | 5.9 | % | |||||||||||||||||||||||||
Total loans serviced | $ | 227,358 | 1,104,913 | $ | 6,800 | 32,229 | $ | 18,652 | 81,295 | 11.2 | % | 10.3 | % |
Principal and Interest | Taxes and Insurance | ||||||||||
Fannie Mae and Freddie Mac | 4 months | No time limit | |||||||||
GNMA | No time limit | No time limit |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Performing TDRs | |||||||||||||||||
Consumer Loans | |||||||||||||||||
Residential first mortgage | $ | 19 | $ | 20 | $ | 22 | |||||||||||
Home equity | 12 | 18 | 22 | ||||||||||||||
Total consumer loans | 31 | 38 | 44 | ||||||||||||||
Commercial Loans | |||||||||||||||||
Commercial real estate | 5 | — | — | ||||||||||||||
Total commercial loans | 5 | — | — | ||||||||||||||
Total performing TDRs | 36 | 38 | 44 | ||||||||||||||
Nonperforming TDRs | |||||||||||||||||
Nonperforming TDRs | 4 | 3 | 3 | ||||||||||||||
Nonperforming TDRs, performing for less than six months | 6 | 7 | 7 | ||||||||||||||
Total nonperforming TDRs | 10 | 10 | 10 | ||||||||||||||
Total TDRs | $ | 46 | $ | 48 | $ | 54 |
For the Years Ended December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Performing TDRs | |||||||||||||||||||
Residential first mortgage | $ | 22 | $ | 19 | $ | 22 | $ | 49 | $ | 306 | |||||||||
Home equity | 22 | 24 | 45 | 52 | 56 | ||||||||||||||
Total performing TDRs | 44 | 43 | 67 | 101 | 362 | ||||||||||||||
Nonperforming TDRs | |||||||||||||||||||
Nonperforming TDRs | 3 | 5 | 8 | 7 | 29 | ||||||||||||||
Nonperforming TDRs at inception but performing for less than six months | 7 | 11 | 10 | 28 | 17 | ||||||||||||||
Total nonperforming TDRs | 10 | 16 | 18 | 35 | 46 | ||||||||||||||
Total TDRs | $ | 54 | $ | 59 | $ | 85 | $ | 136 | $ | 408 | |||||||||
ALLL on consumer TDR loans | $ | 10 | $ | 13 | $ | 9 | $ | 15 | $ | 81 |
For the Year Ended December 31, 2020 | |||||||||||||||||||||||||||||
Residential First Mortgage | Home Equity | Other Consumer | Commercial Real Estate | Commercial and Industrial | Warehouse Lending | Total LHFI Portfolio (1) | Unfunded Commitments | Total ACL | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Beginning balance ACL | $ | 22 | $ | 14 | $ | 6 | $ | 38 | $ | 22 | $ | 5 | $ | 107 | $ | 3 | $ | 110 | |||||||||||
Impact of adopting ASC 326 | 25 | 12 | 10 | (14) | (6) | (4) | 23 | 7 | 30 | ||||||||||||||||||||
Beginning allowance balance | 47 | 26 | 16 | 24 | 16 | 1 | 130 | 10 | 140 | ||||||||||||||||||||
Provision (benefit) for credit losses: | |||||||||||||||||||||||||||||
Loan volume | (10) | (4) | 9 | 3 | (3) | 1 | (4) | 7 | 3 | ||||||||||||||||||||
Economic forecast (2) | 5 | (6) | 3 | 15 | (3) | (1) | 13 | 11 | 24 | ||||||||||||||||||||
Credit (3) | (5) | (3) | (2) | 23 | 20 | — | 33 | — | 33 | ||||||||||||||||||||
Qualitative factor adjustments (4) | 12 | 8 | 11 | 19 | 21 | 3 | 74 | — | 74 | ||||||||||||||||||||
Charge-offs | (6) | (3) | (5) | — | (1) | — | (15) | — | (15) | ||||||||||||||||||||
Provision for charge-offs | 6 | 3 | 5 | — | 1 | — | 15 | — | 15 | ||||||||||||||||||||
Recoveries | — | 4 | 2 | — | — | — | 6 | — | 6 | ||||||||||||||||||||
Ending allowance balance | $ | 49 | $ | 25 | $ | 39 | $ | 84 | $ | 51 | $ | 4 | $ | 252 | $ | 28 | $ | 280 |
December 31, 2018 | |||||||||||||
Investment Loan Portfolio | Percent of Portfolio | Allowance Amount | Allowance as a Percentage of Loan Portfolio | ||||||||||
(Dollars in millions) | |||||||||||||
Consumer loans | |||||||||||||
Residential first mortgage | $ | 2,991 | 32.9 | % | $ | 38 | 1.3 | % | |||||
Home equity | 729 | 8.0 | % | 15 | 2.1 | % | |||||||
Other consumer | 314 | 3.5 | % | 3 | 1.0 | % | |||||||
Total consumer loans | 4,034 | 44.4 | % | 56 | 1.4 | % | |||||||
Commercial loans | |||||||||||||
Commercial real estate | 2,152 | 23.7 | % | 48 | 2.2 | % | |||||||
Commercial and industrial | 1,433 | 15.8 | % | 18 | 1.3 | % | |||||||
Warehouse lending | 1,459 | 16.1 | % | 6 | 0.4 | % | |||||||
Total commercial loans | 5,044 | 55.6 | % | 72 | 1.4 | % | |||||||
Total loans held-for-investment (1) | $ | 9,078 | 100.0 | % | $ | 128 | 1.4 | % |
December 31, 2020 | |||||||||||||||||
LHFI Portfolio (1) | Percent of Portfolio | Allowance Amount (2) | Allowance as a Percent of LHFI Loan Portfolio | Weighted Average Loan Life | |||||||||||||
Consumer loans | |||||||||||||||||
Residential first mortgage | $ | 2,251 | 13.9 | % | $ | 49 | 2.2 | % | 4 | ||||||||
Home equity | 854 | 5.3 | % | 25 | 2.9 | % | 3 | ||||||||||
Other consumer | 1,004 | 6.2 | % | 40 | 4.0 | % | 3 | ||||||||||
Total consumer loans | 4,109 | 25.4 | % | 114 | 2.8 | % | |||||||||||
Commercial loans | |||||||||||||||||
Commercial real estate | 3,060 | 18.9 | % | 103 | 3.4 | % | 2 | ||||||||||
Commercial and industrial | 1,382 | 8.5 | % | 57 | 4.1 | % | 2 | ||||||||||
Warehouse lending | 7,658 | 47.2 | % | 6 | 0.1 | % | — | ||||||||||
Total commercial loans | 12,100 | 74.6 | % | 166 | 1.4 | % | |||||||||||
Total consumer and commercial loans | $ | 16,209 | 100.0 | % | $ | 280 | 1.7 | % | |||||||||
Total consumer and commercial loans excluding warehouse | $ | 8,551 | 52.8 | % | $ | 274 | 3.2 | % |
December 31, 2019 | |||||||||||||||||
LHFI Portfolio (1) | Percent of Portfolio | Allowance Amount (2) | Allowance as a Percent of LHFI Loan Portfolio | Weighted Average Loan Life | |||||||||||||
Consumer loans | |||||||||||||||||
Residential first mortgage | $ | 3,145 | 26.0 | % | $ | 22 | 0.7 | % | 5 | ||||||||
Home equity | 1,021 | 8.4 | % | 14 | 1.4 | % | 3 | ||||||||||
Other consumer | 729 | 6.0 | % | 6 | 0.8 | % | 2 | ||||||||||
Total consumer loans | 4,895 | 40.4 | % | 42 | 0.9 | % | |||||||||||
Commercial loans | |||||||||||||||||
Commercial real estate | 2,828 | 23.3 | % | 40 | 1.4 | % | 2 | ||||||||||
Commercial and industrial | 1,634 | 13.5 | % | 23 | 1.4 | % | 1 | ||||||||||
Warehouse lending | 2,760 | 22.8 | % | 5 | 0.2 | % | — | ||||||||||
Total commercial loans | 7,222 | 59.6 | % | 68 | 0.9 | % | |||||||||||
Total consumer and commercial loans | $ | 12,117 | 100.0 | % | $ | 110 | 0.9 | % | |||||||||
Total consumer and commercial loans excluding warehouse | $ | 9,357 | 77.2 | % | $ | 105 | 1.1 | % |
At December 31, | |||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||||||||
Allowance Amount | Allowance to Total Loans | Allowance Amount | Allowance to Total Loans | Allowance Amount | Allowance to Total Loans | Allowance Amount | Allowance to Total Loans | Allowance Amount | Allowance to Total Loans | ||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||
Residential first mortgage | $ | 38 | 0.4 | % | $ | 47 | 0.6 | % | $ | 65 | 1.1 | % | $ | 116 | 1.9 | % | $ | 234 | 5.6 | % | |||||||||
Home equity | 15 | 0.2 | % | 22 | 0.3 | % | 24 | 0.4 | % | 32 | 0.5 | % | 31 | 0.7 | % | ||||||||||||||
Other consumer | 3 | — | % | 1 | — | % | 1 | — | % | 2 | — | % | 1 | — | % | ||||||||||||||
Total consumer loans | 56 | 0.6 | % | 70 | 0.9 | % | 90 | 1.5 | % | 150 | 2.4 | % | 266 | 6.3 | % | ||||||||||||||
Commercial loans | |||||||||||||||||||||||||||||
Commercial real estate | 48 | 0.5 | % | 45 | 0.6 | % | 28 | 0.5 | % | 18 | 0.3 | % | 17 | 0.4 | % | ||||||||||||||
Commercial and industrial | 18 | 0.2 | % | 19 | 0.2 | % | 17 | 0.3 | % | 13 | 0.2 | % | 11 | 0.2 | % | ||||||||||||||
Warehouse lending | 6 | 0.1 | % | 6 | 0.1 | % | 7 | 0.1 | % | 6 | 0.1 | % | 3 | 0.1 | % | ||||||||||||||
Total commercial loans | 72 | 0.8 | % | 70 | 0.9 | % | 52 | 0.9 | % | 37 | 0.6 | % | 31 | 0.7 | % | ||||||||||||||
Total loans held-for-investment (1) | $ | 128 | 1.4 | % | $ | 140 | 1.8 | % | $ | 142 | 2.4 | % | $ | 187 | 3.0 | % | $ | 297 | 7.0 | % |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
Nonaccrual Loans (3) | Nonaccruals as Percent of LHFI Loan Portfolio (1) | Allowance as a Percent of Nonaccruals (2) | Nonaccrual Loans (3) | Nonaccruals as Percent of LHFI Loan Portfolio (1) | Allowance as a Percent of Nonaccruals (2) | ||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Residential first mortgage | $ | 31 | 1.4 | % | N/M | $ | 21 | 0.7 | % | N/M | |||||||||||||
Home equity | 5 | 0.6 | % | N/M | 4 | 0.4 | % | N/M | |||||||||||||||
Other consumer | 2 | 0.2 | % | N/M | 1 | 0.1 | % | N/M | |||||||||||||||
Total consumer loans | 38 | 0.9 | % | N/M | 26 | 0.5 | % | N/M | |||||||||||||||
Commercial loans | |||||||||||||||||||||||
Commercial real estate | 3 | 0.1 | % | N/M | — | — | % | N/M | |||||||||||||||
Commercial and industrial | 15 | 1.1 | % | N/M | — | — | % | N/M | |||||||||||||||
Total commercial loans | 18 | 0.1 | % | N/M | — | — | % | N/M | |||||||||||||||
Total consumer and commercial loans | $ | 56 | 0.3 | % | N/M | $ | 26 | 0.2 | % | N/M |
For the Years Ended December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Beginning balance | $ | 140 | $ | 142 | $ | 187 | $ | 297 | $ | 207 | |||||||||
Provision (benefit) for loan losses (1) | (8 | ) | 6 | (15 | ) | (19 | ) | 132 | |||||||||||
Charge-offs | |||||||||||||||||||
Consumer loans | |||||||||||||||||||
Residential first mortgage | (4 | ) | (8 | ) | (29 | ) | (87 | ) | (38 | ) | |||||||||
Home equity | (2 | ) | (3 | ) | (4 | ) | (7 | ) | (9 | ) | |||||||||
Other consumer | (2 | ) | (2 | ) | (3 | ) | (4 | ) | (2 | ) | |||||||||
Total consumer loans | (8 | ) | (13 | ) | (36 | ) | (98 | ) | (49 | ) | |||||||||
Commercial loans | |||||||||||||||||||
Commercial real estate | — | (1 | ) | — | — | (3 | ) | ||||||||||||
Commercial and industrial | — | — | — | (3 | ) | — | |||||||||||||
Total commercial loans | — | (1 | ) | — | (3 | ) | (3 | ) | |||||||||||
Total charge offs | (8 | ) | (14 | ) | (36 | ) | (101 | ) | (52 | ) | |||||||||
Recoveries | |||||||||||||||||||
Consumer loans | |||||||||||||||||||
Residential first mortgage | 2 | 1 | 2 | 3 | 3 | ||||||||||||||
Home equity | 1 | 2 | — | 2 | 1 | ||||||||||||||
Other consumer | 1 | 1 | 3 | 3 | 3 | ||||||||||||||
Total consumer loans | 4 | 4 | 5 | 8 | 7 | ||||||||||||||
Commercial loans | |||||||||||||||||||
Commercial real estate | — | 1 | 1 | 2 | 3 | ||||||||||||||
Commercial and industrial | — | 1 | — | — | — | ||||||||||||||
Total commercial loans | — | 2 | 1 | 2 | 3 | ||||||||||||||
Total recoveries | 4 | 6 | 6 | 10 | 10 | ||||||||||||||
Charge-offs, net of recoveries | (4 | ) | (8 | ) | (30 | ) | (91 | ) | (42 | ) | |||||||||
Ending balance | $ | 128 | $ | 140 | $ | 142 | $ | 187 | $ | 297 | |||||||||
Net charge-off to LHFI ratio (2) | 0.04 | % | 0.12 | % | 0.52 | % | 1.85 | % | 1.07 | % |
For the Years Ended December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Charge-offs, net of recoveries | $ | 4 | $ | 8 | $ | 30 | $ | 91 | $ | 42 | |||||||||
Charge-offs associated with loans with government guarantees | 2 | 4 | 14 | 3 | — | ||||||||||||||
Charge-offs associated with the sale or transfer of nonperforming loans and TDRs | — | 1 | 8 | 69 | 15 | ||||||||||||||
Charge-offs, net of recoveries, adjusted | $ | 2 | $ | 3 | $ | 8 | $ | 19 | $ | 27 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||
Net (charge-offs) recoveries | Net charge-offs as a Percent of Average LHFI Loan Portfolio | Net (charge-offs) recoveries | Net charge-offs as a Percent of Average LHFI Loan Portfolio | ||||||||||||||
Consumer loans | |||||||||||||||||
Residential first mortgage | $ | (6) | 0.2 | % | $ | (2) | 0.1 | % | |||||||||
Home equity | 1 | N/M | — | — | % | ||||||||||||
Other consumer | (3) | 0.3 | % | (7) | 1.2 | % | |||||||||||
Total consumer loans | (8) | 0.2 | % | (9) | 0.2 | % | |||||||||||
Commercial loans | |||||||||||||||||
Commercial real estate | — | — | % | — | — | % | |||||||||||
Commercial and industrial | (1) | 0.1 | % | (30) | 1.8 | % | |||||||||||
Total commercial loans | (1) | — | % | (30) | 0.5 | % | |||||||||||
Total consumer and commercial loans | $ | (9) | 0.1 | % | $ | (39) | 0.4 | % |
December 31, 2020 | |||||||||||
Scenario | Net Interest Income | $ Change | % Change | ||||||||
(Dollars in millions) | |||||||||||
100 | $791 | $94 | 13.5% | ||||||||
Constant | 697 | — | —% | ||||||||
(100) | N/M | N/M | N/M |
December 31, 2018 | ||||||||||||||||||||
December 31, 2019 | December 31, 2019 | |||||||||||||||||||
Scenario | Net interest Income | $ Change | % Change | Scenario | Net Interest Income | $ Change | % Change | |||||||||||||
(Dollars in millions) | (Dollars in millions) | (Dollars in millions) | ||||||||||||||||||
200 | $503 | $25 | 5.2 | % | ||||||||||||||||
100 | 100 | $592 | $34 | 6.0% | ||||||||||||||||
Constant | 478 | — | — | % | Constant | 559 | — | —% | ||||||||||||
(200) | 449 | (29 | ) | (6.1 | )% | |||||||||||||||
(100) | (100) | 520 | (39) | (6.9)% |
December 31, 2017 | |||||||||
Scenario | Net interest Income | $ Change | % Change | ||||||
(Dollars in millions) | |||||||||
200 | $449 | $16 | 3.6 | % | |||||
Constant | 433 | — | — | % | |||||
(200) | 397 | (37 | ) | (8.5 | )% |
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Scenario | EVE | EVE% | $ Change | % Change | Scenario | EVE | EVE% | $ Change | % Change | Policy Limits | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||||
300 | $ | 3,948 | 12.7 | % | $ | 890 | 29.1 | % | 300 | $ | 3,147 | 13.6 | % | $ | 150 | 5.0 | % | (22.5) | % | |||||||||||||||||||
200 | 3,755 | 12.1 | % | 697 | 22.8 | % | 200 | 3,152 | 13.7 | % | 155 | 5.2 | % | (15.0) | % | |||||||||||||||||||||||
100 | 3,474 | 11.2 | % | 416 | 13.6 | % | 100 | 3,103 | 13.5 | % | 106 | 3.5 | % | (7.5) | % | |||||||||||||||||||||||
Current | 3,058 | 9.9 | % | — | — | % | Current | 2,997 | 13.0 | % | — | — | % | — | % | |||||||||||||||||||||||
(100) | N/M | N/M | N/M | N/M | (100) | 2,832 | 12.3 | % | (165) | (5.5) | % | 7.5 | % |
December 31, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||||
Scenario | EVE | EVE% | $ Change | % Change | Scenario | EVE | EVE% | $ Change | % Change | Policy Limits | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||
300 | $ | 1,617 | 8.8 | % | $ | (223 | ) | (12.1 | )% | 300 | $ | 1,941 | 11.6 | % | $ | (172 | ) | (8.1 | )% | 22.5 | % | ||||||||||||
200 | 1,720 | 9.4 | % | (120 | ) | (6.5 | )% | 200 | 2,020 | 12.0 | % | (93 | ) | (4.4 | )% | 15.0 | % | ||||||||||||||||
100 | 1,794 | 9.8 | % | (46 | ) | (2.5 | )% | 100 | 2,089 | 12.4 | % | (24 | ) | (1.2 | )% | 7.5 | % | ||||||||||||||||
Current | 1,840 | 10.0 | % | — | — | % | Current | 2,113 | 12.6 | % | — | — | % | — | % | ||||||||||||||||||
(100) | 1,849 | 10.1 | % | 9 | 0.5 | % | (100) | 2,082 | 12.4 | % | (31 | ) | (1.5 | )% | 7.5 | % |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Net return (loss) on mortgage servicing rights | |||||||||||||||||
Servicing fees, ancillary income and late fees (1) | $ | 107 | $ | 96 | $ | 65 | |||||||||||
Decrease in MSR fair value due to pay-offs, pay-downs, run-off, model changes, and other | (109) | (89) | (20) | ||||||||||||||
Changes in fair value | (50) | (76) | 2 | ||||||||||||||
Gain (loss) on MSR derivatives (2) | 65 | 76 | (5) | ||||||||||||||
Net transaction costs | (3) | (1) | (6) | ||||||||||||||
Total return included in net return on mortgage servicing rights | $ | 10 | $ | 6 | $ | 36 |
December 31, 2020 | December 31, 2019 | Change | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Retail deposits | $ | 9,971 | $ | 9,164 | $ | 807 | |||||||||||
Government deposits | 1,765 | 1,213 | 552 | ||||||||||||||
Wholesale deposits | 1,031 | 633 | 398 | ||||||||||||||
Custodial deposits | 7,206 | 4,136 | 3,070 | ||||||||||||||
Total deposits | 19,973 | 15,146 | 4,827 | ||||||||||||||
FHLB advances and other short-term debt | 5,100 | 4,815 | 285 | ||||||||||||||
Other long-term debt | 641 | 496 | 145 | ||||||||||||||
Total borrowed funds | 5,741 | 5,311 | 430 | ||||||||||||||
Total funding | $ | 25,714 | $ | 20,457 | $ | 5,257 |
December 31, 2018 | December 31, 2017 | Change | |||||||||
(Dollars in millions) | |||||||||||
Retail deposits | $ | 8,854 | $ | 6,497 | $ | 2,357 | |||||
Government deposits | 1,202 | 1,073 | 129 | ||||||||
Wholesale deposits | 583 | 43 | 540 | ||||||||
Custodial deposits | 1,741 | 1,321 | 420 | ||||||||
Total deposits | 12,380 | 8,934 | 3,446 | ||||||||
Federal Home Loan Bank advances and other short-term debt | 3,394 | 5,665 | (2,271 | ) | |||||||
Other long-term debt | 495 | 494 | 1 | ||||||||
Total borrowed funds | 3,889 | 6,159 | (2,270 | ) | |||||||
Total funding | $ | 16,269 | $ | 15,093 | $ | 1,176 |
December 31, 2020 | December 31, 2019 | Change | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Federal Home Loan Bank advances | |||||||||||||||||
Outstanding advances | $ | 4,615 | $ | 4,345 | $ | 270 | |||||||||||
Borrowing capacity: | |||||||||||||||||
Line of credit | 30 | 30 | — | ||||||||||||||
Collateralized borrowing capacity | 2,360 | 2,345 | 15 | ||||||||||||||
Total unused borrowing capacity | 2,390 | 2,375 | 15 | ||||||||||||||
FRB discount window | |||||||||||||||||
Collateralized borrowing capacity | 1,374 | 758 | 616 | ||||||||||||||
Unencumbered investment securities | |||||||||||||||||
Agency - Commercial (1) | 1,263 | 1,257 | 6 | ||||||||||||||
Agency - Residential (1) | 815 | 1,180 | (365) | ||||||||||||||
Municipal obligations | 23 | 26 | (3) | ||||||||||||||
Corporate debt obligations | 62 | 77 | (15) | ||||||||||||||
Other | 1 | 1 | — | ||||||||||||||
Total unencumbered investment securities | 2,164 | 2,541 | (377) | ||||||||||||||
Total liquidity sources and borrowing capacity | $ | 10,543 | $ | 10,019 | $ | 10,543 |
December 31, 2018 | December 31, 2017 | Change | |||||||||
(Dollars in millions) | |||||||||||
Federal Home Loan Bank advances | |||||||||||
Outstanding Advances | $ | 3,143 | $ | 5,665 | $ | (2,522 | ) | ||||
Borrowing capacity | |||||||||||
Line of credit | 30 | 30 | — | ||||||||
Collateralized borrowing capacity | 2,810 | 733 | 2,077 | ||||||||
Total unused borrowing capacity | 2,840 | 763 | 2,077 | ||||||||
FRB discount window | |||||||||||
Collateralized borrowing capacity | 409 | 433 | (24 | ) | |||||||
Unencumbered investment securities | |||||||||||
Agency - Commercial | 737 | 590 | 147 | ||||||||
Agency - Residential | 475 | 562 | (87 | ) | |||||||
Municipal obligations | 28 | 31 | (3 | ) | |||||||
Corporate debt obligations | 41 | 37 | 4 | ||||||||
Total unencumbered investment securities | $ | 1,281 | $ | 1,220 | $ | 61 |
At December 31, | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | Change | ||||||||||||||||||||||||||||||||
Balance | % of Deposits | Balance | % of Deposits | Balance | % of Deposits | 2020 vs. 2019 | 2019 vs. 2018 | ||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Retail deposits | |||||||||||||||||||||||||||||||||||
Branch retail deposits | |||||||||||||||||||||||||||||||||||
Savings accounts | $ | 3,437 | 17.2 | % | $ | 3,030 | 20.0 | % | $ | 2,812 | 22.7 | % | $ | 407 | $ | 218 | |||||||||||||||||||
Certificates of deposit/CDARS (1) | 1,355 | 6.8 | % | 2,353 | 15.5 | % | 2,387 | 19.3 | % | $ | (998) | (34) | |||||||||||||||||||||||
Demand deposit accounts | 1,726 | 8.6 | % | 1,318 | 8.7 | % | 1,297 | 10.5 | % | $ | 408 | 21 | |||||||||||||||||||||||
Money market demand accounts | 490 | 2.5 | % | 495 | 3.3 | % | 628 | 5.1 | % | $ | (5) | (133) | |||||||||||||||||||||||
Total branch retail deposits | 7,008 | 35.1 | % | 7,196 | 47.5 | % | 7,124 | 57.5 | % | (188) | 72 | ||||||||||||||||||||||||
Commercial deposits (2) | |||||||||||||||||||||||||||||||||||
Demand deposit accounts | 2,294 | 11.5 | % | 1,438 | 9.5 | % | 1,243 | 10.0 | % | 856 | 195 | ||||||||||||||||||||||||
Savings accounts | 461 | 2.3 | % | 342 | 2.3 | % | 314 | 2.5 | % | 119 | 28 | ||||||||||||||||||||||||
Money market demand accounts | 208 | 1.0 | % | 188 | 1.2 | % | 173 | 1.4 | % | 20 | 15 | ||||||||||||||||||||||||
Total commercial deposits | 2,963 | 14.8 | % | 1,968 | 13.0 | % | 1,730 | 13.9 | % | 995 | 238 | ||||||||||||||||||||||||
Total retail deposits | $ | 9,971 | 49.9 | % | $ | 9,164 | 60.5 | % | $ | 8,854 | 71.5 | % | $ | 807 | $ | 310 | |||||||||||||||||||
Government deposits | |||||||||||||||||||||||||||||||||||
Savings accounts | $ | 778 | 3.9 | % | $ | 495 | 3.3 | % | $ | 567 | 4.6 | % | $ | 283 | $ | (72) | |||||||||||||||||||
Demand deposit accounts | 529 | 2.6 | % | 360 | 2.4 | % | 326 | 2.6 | % | 169 | 34 | ||||||||||||||||||||||||
Certificates of deposit/CDARS (1) | 458 | 2.3 | % | 358 | 2.4 | % | 309 | 2.5 | % | 100 | 49 | ||||||||||||||||||||||||
Total government deposits | 1,765 | 8.8 | % | 1,213 | 8.0 | % | 1,202 | 9.7 | % | 552 | 11 | ||||||||||||||||||||||||
Custodial deposits (3) | 7,206 | 36.1 | % | 4,136 | 27.3 | % | 1,741 | 14.1 | % | 3,070 | 2,395 | ||||||||||||||||||||||||
Wholesale deposits | 1,031 | 5.2 | % | 633 | 4.2 | % | 583 | 4.7 | % | 398 | 50 | ||||||||||||||||||||||||
Total deposits (4) | $ | 19,973 | 100.0 | % | $ | 15,146 | 100.0 | % | $ | 12,380 | 100.0 | % | $ | 4,827 | $ | 2,766 |
At December 31, | |||||||||||||||||
2018 | 2017 | ||||||||||||||||
Balance | % of Deposits | Balance | % of Deposits | Change | |||||||||||||
(Dollars in millions) | |||||||||||||||||
Retail deposits | |||||||||||||||||
Branch retail deposits | |||||||||||||||||
Demand deposit accounts | $ | 1,297 | 10.5 | % | $ | 560 | 6.3 | % | $ | 737 | |||||||
Savings accounts | 2,812 | 22.7 | % | 3,295 | 36.9 | % | (483 | ) | |||||||||
Money market demand accounts | 628 | 5.1 | % | 91 | 1.0 | % | 537 | ||||||||||
Certificates of deposit/CDARS (1) | 2,387 | 19.3 | % | 1,494 | 16.7 | % | 893 | ||||||||||
Total branch retail deposits | 7,124 | 57.6 | % | 5,440 | 60.9 | % | 1,684 | ||||||||||
Commercial deposits (2) | |||||||||||||||||
Demand deposit accounts | 1,243 | 10.0 | % | 697 | 7.8 | % | 546 | ||||||||||
Savings accounts | 314 | 2.5 | % | 258 | 2.9 | % | 56 | ||||||||||
Money market demand accounts | 173 | 1.4 | % | 102 | 1.1 | % | 71 | ||||||||||
Total commercial deposits | 1,730 | 13.9 | % | 1,057 | 11.8 | % | 673 | ||||||||||
Total retail deposits | $ | 8,854 | 71.5 | % | $ | 6,497 | 72.7 | % | $ | 2,357 | |||||||
Government deposits | |||||||||||||||||
Demand deposit accounts | $ | 326 | 2.6 | % | $ | 251 | 2.8 | % | $ | 75 | |||||||
Savings accounts | 567 | 4.6 | % | 446 | 5.0 | % | 121 | ||||||||||
Certificates of deposit/CDARS (1) | 309 | 2.5 | % | 376 | 4.2 | % | (67 | ) | |||||||||
Total government deposits | 1,202 | 9.7 | % | 1,073 | 12.0 | % | 129 | ||||||||||
Wholesale deposits | 583 | 4.7 | % | 43 | 0.5 | % | 540 | ||||||||||
Custodial deposits (3) | 1,741 | 14.1 | % | 1,321 | 14.8 | % | 420 | ||||||||||
Total deposits (4) | $ | 12,380 | 100.0 | % | $ | 8,934 | 100.0 | % | $ | 3,446 |
Retail Deposits | Government Deposits | Total | |||||||||
(Dollars in millions) | |||||||||||
Twelve months or less | $ | 1,166 | $ | 288 | $ | 1,454 | |||||
One to two years | 335 | 12 | 347 | ||||||||
Two to three years | 29 | 1 | 30 | ||||||||
Three to four years | 6 | 1 | 7 | ||||||||
Four to five years | 14 | — | 14 | ||||||||
Thereafter | 20 | — | 20 | ||||||||
Total | $ | 1,570 | $ | 302 | $ | 1,872 |
Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | Total | |||||||||||||
(Dollars in millions) | |||||||||||||||||
Deposits without stated maturities | $ | 9,924 | $ | — | $ | — | $ | — | $ | 9,924 | |||||||
Short-term FHLB advances and other borrowings | 1,935 | 537 | 366 | 7 | 2,845 | ||||||||||||
Certificates of deposits | 3,415 | — | — | — | 3,415 | ||||||||||||
Long-term FHLB advances | — | 700 | 100 | 400 | 1,200 | ||||||||||||
Senior notes (2) | 246 | — | — | — | 246 | ||||||||||||
Subordinated debt | — | — | — | 148 | 148 | ||||||||||||
Trust preferred securities | — | — | — | 247 | 247 | ||||||||||||
Operating leases | 9 | 12 | 5 | 1 | 27 | ||||||||||||
DOJ Liability | — | — | — | 118 | 118 | ||||||||||||
Other (1) | 17 | 35 | 7 | 2 | 61 | ||||||||||||
Total | $ | 15,546 | $ | 1,284 | $ | 478 | $ | 923 | $ | 18,231 |
Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | Total | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Deposits without stated maturities | $ | 7,361 | $ | — | $ | — | $ | — | $ | 7,361 | |||||||||
Certificates of deposits | 2,509 | 705 | 37 | 28 | 3,279 | ||||||||||||||
Short-term FHLB advances and other borrowings | 3,244 | — | — | — | 3,244 | ||||||||||||||
Long-term FHLB advances | 50 | — | 100 | 150 | |||||||||||||||
Senior notes | — | 248 | — | — | 248 | ||||||||||||||
Trust preferred securities | — | — | — | 247 | 247 | ||||||||||||||
Operating leases | 9 | 10 | 3 | 3 | 25 | ||||||||||||||
DOJ litigation settlement | — | — | — | 118 | 118 | ||||||||||||||
Other (1) | 24 | 12 | — | 1 | 37 | ||||||||||||||
Total | $ | 13,197 | $ | 975 | $ | 40 | $ | 497 | $ | 14,709 |
Flagstar Bancorp | Actual | Well-Capitalized Under Prompt Corrective Action Provisions | Excess Capital Over Well-Capitalized Minimum | |||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||
Tier 1 leverage capital (to adjusted avg. total assets) | $ | 2,270 | 7.71 | % | $ | 1,472 | 5.0 | % | $ | 798 | 2.7 | % | ||||||||||||||||||||
Common equity Tier 1 capital (to RWA) | 2,030 | 9.15 | % | 1,442 | 6.5 | % | 588 | 2.6 | % | |||||||||||||||||||||||
Tier 1 capital (to RWA) | 2,270 | 10.23 | % | 1,775 | 8.0 | % | 495 | 2.2 | % | |||||||||||||||||||||||
Total capital (to RWA) | 2,638 | 11.89 | % | 2,219 | 10.0 | % | 419 | 1.9 | % |
Flagstar Bancorp | Actual | Well-Capitalized Under Prompt Corrective Action Provisions | Under Proposed Capital Simplification | Excess Capital Over Well-Capitalized Minimum (1) | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Current Rule | Capital Simplification Rules | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||
Tier 1 leverage capital (to adjusted avg. total assets) | $ | 1,505 | 8.29 | % | $ | 908 | 5.0 | % | $ | 1,627 | 8.90 | % | $ | 597 | $ | 713 | |||||||||
Common equity Tier 1 capital (to RWA) | 1,265 | 10.54 | % | 780 | 6.5 | % | 1,387 | 10.97 | % | 485 | 565 | ||||||||||||||
Tier 1 capital (to RWA) | 1,505 | 12.54 | % | 960 | 8.0 | % | 1,627 | 12.87 | % | 545 | 616 | ||||||||||||||
Total capital (to RWA) | 1,637 | 13.63 | % | 1,201 | 10.0 | % | 1,758 | 13.91 | % | 436 | 495 |
At December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Total stockholders' equity | $ | 2,201 | $ | 1,788 | $ | 1,570 | |||||||||||||||||||||||
Less: Goodwill and intangibles | 157 | 170 | 190 | ||||||||||||||||||||||||||
Tangible book value | $ | 2,044 | $ | 1,618 | $ | 1,380 | |||||||||||||||||||||||
Number of common shares outstanding | 52,656,067 | 56,631,236 | 57,749,464 | ||||||||||||||||||||||||||
Tangible book value per share | $ | 38.80 | $ | 28.57 | $ | 23.90 | |||||||||||||||||||||||
Net income | $ | 538 | $ | 218 | $ | 187 | |||||||||||||||||||||||
DOJ adjustment | — | (25) | — | ||||||||||||||||||||||||||
Tax impact of DOJ adjustment | — | 5 | — | ||||||||||||||||||||||||||
Recognition of hedging gains | — | — | (29) | ||||||||||||||||||||||||||
Tax impact of hedging gains | — | — | 5 | ||||||||||||||||||||||||||
Wells Fargo acquisition costs | — | 1 | 15 | ||||||||||||||||||||||||||
Tax impact of Wells Fargo acquisition costs | — | — | (2) | ||||||||||||||||||||||||||
Adjusted net income | $ | 538 | $ | 199 | $ | 176 | |||||||||||||||||||||||
Weighted average diluted common shares | 56,505,813 | 57,238,978 | 58,322,950 | ||||||||||||||||||||||||||
Diluted earnings per share | $ | 9.52 | $ | 3.80 | $ | 3.21 | |||||||||||||||||||||||
Adjusted diluted earnings per share | $ | 9.52 | $ | 3.46 | $ | 3.02 | |||||||||||||||||||||||
Net interest income | $ | 685 | $ | 562 | $ | 497 | |||||||||||||||||||||||
Hedging gains | — | — | (29) | ||||||||||||||||||||||||||
Adjusted net interest income | $ | 685 | $ | 562 | $ | 468 | |||||||||||||||||||||||
Average interest-earning assets | $ | 24,431 | $ | 18,453 | $ | 16,136 | |||||||||||||||||||||||
Net interest margin | 2.80 | % | 3.05 | % | 3.07 | % | |||||||||||||||||||||||
Adjusted net interest margin | 2.80 | % | 3.05 | % | 2.89 | % |
At December 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Total stockholders' equity | $ | 1,570 | $ | 1,399 | $ | 1,336 | $ | 1,529 | $ | 1,373 | |||||||||
Less: Preferred stock | — | — | — | 267 | 267 | ||||||||||||||
Less: Goodwill and intangibles | 190 | 21 | — | — | — | ||||||||||||||
Tangible book value | $ | 1,380 | $ | 1,378 | $ | 1,336 | $ | 1,262 | $ | 1,106 | |||||||||
Number of common shares outstanding | 57,749,464 | 57,321,228 | 56,824,802 | 56,483,258 | 56,332,307 | ||||||||||||||
Tangible book value per share | $ | 23.90 | $ | 24.04 | $ | 23.50 | $ | 22.33 | $ | 19.64 | |||||||||
Total assets | $ | 18,531 | $ | 16,912 | $ | 14,053 | $ | 13,715 | $ | 9,840 | |||||||||
Tangible common equity to assets ratio | 7.45 | % | 8.15 | % | 9.50 | % | 9.20 | % | 11.24 | % |
For the Years Ended December 31, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Average interest-earning asset yield | 3.33 | % | 4.28 | % | 4.21 | % | |||||||||||||||||||||||
Average interest-bearing liability cost | 0.93 | % | 1.76 | % | 1.40 | % | |||||||||||||||||||||||
Impact from hedging gains | — | % | — | % | 0.23 | % | |||||||||||||||||||||||
Adjusted average interest-bearing liability | 0.93 | % | 1.76 | % | 1.63 | % | |||||||||||||||||||||||
Interest rate spread | 2.40 | % | 2.52 | % | 2.81 | % | |||||||||||||||||||||||
Adjusted interest rate spread | 2.40 | % | 2.52 | % | 2.58 | % | |||||||||||||||||||||||
Noninterest expense | $ | 1,157 | $ | 888 | $ | 712 | |||||||||||||||||||||||
Wells Fargo acquisition costs | — | — | 15 | ||||||||||||||||||||||||||
Adjusted noninterest expense | $ | 1,157 | $ | 888 | $ | 697 | |||||||||||||||||||||||
Return on average assets | 2.00 | % | 1.05 | % | 1.04 | % | |||||||||||||||||||||||
Adjustment to remove hedging gains | — | % | — | % | (0.13) | % | |||||||||||||||||||||||
Adjustment to remove DOJ adjustment | — | % | (0.09) | % | — | % | |||||||||||||||||||||||
Adjustment to remove Wells Fargo acquisition costs | — | % | — | % | 0.07 | % | |||||||||||||||||||||||
Adjusted return on average assets | 2.00 | % | 0.96 | % | 0.98 | % | |||||||||||||||||||||||
Return on average tangible common equity | 29.00 | % | 15.15 | % | 13.46 | % | |||||||||||||||||||||||
Adjustment to remove hedging gains | — | % | — | % | (1.70) | % | |||||||||||||||||||||||
Adjustment to remove DOJ adjustment | — | % | (1.34) | % | — | % | |||||||||||||||||||||||
Adjustment to remove Wells Fargo acquisition costs | — | % | 0.06 | % | 0.91 | % | |||||||||||||||||||||||
Adjusted return on average tangible common equity | 29.00 | % | 13.87 | % | 12.67 | % |
Three Months Ended | Year Ended | ||||||||||||||||||||||
December 31, 2018 | September 30, 2018 | December 31, 2017 | December 31, 2018 | December 31, 2017 | December 31, 2016 | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Net income (loss) | $ | 54 | $ | 48 | $ | (45 | ) | $ | 187 | $ | 63 | $ | 171 | ||||||||||
DOJ adjustment | — | — | — | — | — | (24 | ) | ||||||||||||||||
Tax impact of DOJ adjustment | — | — | — | — | — | 8 | |||||||||||||||||
Tax reform impact | — | — | 80 | — | 80 | — | |||||||||||||||||
Recognition of hedging gains | (29 | ) | — | — | (29 | ) | — | — | |||||||||||||||
Tax impact of hedging gains | 5 | 5 | |||||||||||||||||||||
Wells Fargo acquisition costs | 14 | 1 | — | 15 | — | — | |||||||||||||||||
Tax impact of Wells Fargo acquisition costs | (2 | ) | — | — | (2 | ) | — | — | |||||||||||||||
Adjusted net income | $ | 42 | $ | 49 | $ | 35 | $ | 176 | $ | 143 | $ | 155 | |||||||||||
Deferred cumulative preferred stock dividends (1) | — | — | — | — | — | (18 | ) | ||||||||||||||||
Adjusted net income applicable to common stockholders | $ | 42 | $ | 49 | $ | 35 | $ | 176 | $ | 143 | $ | 137 | |||||||||||
Weighted average diluted common shares | 58,385,354 | 58,332,598 | 58,311,881 | 58,322,950 | 58,178,343 | 57,597,667 | |||||||||||||||||
Diluted earnings (loss) per share | $ | 0.93 | $ | 0.83 | $ | (0.79 | ) | $ | 3.21 | $ | 1.09 | $ | 2.66 | ||||||||||
Adjusted diluted earnings per share | $ | 0.72 | $ | 0.85 | $ | 0.60 | $ | 3.02 | $ | 2.47 | $ | 2.38 | |||||||||||
Net interest income | $ | 497 | $ | 390 | $ | 323 | |||||||||||||||||
Hedging gains | (29 | ) | — | — | |||||||||||||||||||
Adjusted net interest income | $ | 468 | $ | 390 | $ | 323 | |||||||||||||||||
Average interest-earning assets | $ | 16,136 | $ | 14,130 | $ | 12,164 | |||||||||||||||||
Net interest margin | 3.07 | % | 2.75 | % | 2.64 | % | |||||||||||||||||
Adjusted net interest margin | 2.89 | % | 2.75 | % | 2.64 | % | |||||||||||||||||
Average interest-earning asset yield | 4.21 | % | 3.71 | % | 3.42 | % | |||||||||||||||||
Average interest-bearing liability cost | 1.40 | % | 1.15 | % | 0.97 | % | |||||||||||||||||
Impact from hedging gains | 0.23 | % | — | — | |||||||||||||||||||
Adjusted average interest-bearing liability cost | 1.63 | % | 1.15 | % | 0.97 | % | |||||||||||||||||
Interest rate spread | 2.81 | % | 2.56 | % | 2.45 | % | |||||||||||||||||
Adjusted interest rate spread | 2.58 | % | 2.56 | % | 2.45 | % | |||||||||||||||||
Noninterest expense | $ | 712 | $ | 643 | $ | 560 | |||||||||||||||||
Wells Fargo acquisition costs | 15 | — | — | ||||||||||||||||||||
Adjusted noninterest expense | $ | 697 | $ | 643 | $ | 560 |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
/s/ PricewaterhouseCoopers LLP | ||
Detroit, Michigan | ||
February |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
Assets | |||||||||||
Cash | $ | 251 | $ | 220 | |||||||
Interest-earning deposits | 372 | 206 | |||||||||
Total cash and cash equivalents | 623 | 426 | |||||||||
Investment securities available-for-sale | 1,944 | 2,116 | |||||||||
Investment securities held-to-maturity | 377 | 598 | |||||||||
Loans held-for-sale ($7,009 and $5,219 measured at fair value, respectively) | 7,098 | 5,258 | |||||||||
Loans held-for-investment ($13 and $12 measured at fair value, respectively) | 16,227 | 12,129 | |||||||||
Loans with government guarantees | 2,516 | 736 | |||||||||
Less: allowance for loan losses | (252) | (107) | |||||||||
Total loans held-for-investment and loans with government guarantees, net | 18,491 | 12,758 | |||||||||
Mortgage servicing rights | 329 | 291 | |||||||||
Federal Home Loan Bank stock | 377 | 303 | |||||||||
Premises and equipment, net | 392 | 416 | |||||||||
Goodwill and intangible assets | 157 | 170 | |||||||||
Other assets | 1,250 | 930 | |||||||||
Total assets | $ | 31,038 | $ | 23,266 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Non-interest bearing deposits | $ | 9,458 | $ | 5,467 | |||||||
Interest bearing deposits | 10,515 | 9,679 | |||||||||
Total deposits | 19,973 | 15,146 | |||||||||
Short-term Federal Home Loan Bank advances and other | 3,900 | 4,165 | |||||||||
Long-term Federal Home Loan Bank advances | 1,200 | 650 | |||||||||
Other long-term debt | 641 | 496 | |||||||||
Loans with government guarantees repurchase options | 1,851 | 70 | |||||||||
Other liabilities ($35 and $35 measured at fair value, respectively) | 1,272 | 951 | |||||||||
Total liabilities | 28,837 | 21,478 | |||||||||
Stockholders’ Equity | |||||||||||
Common stock $0.01 par value, 80,000,000 and 80,000,000 shares authorized; 52,656,067 and 56,631,236 shares issued and outstanding, respectively | 1 | 1 | |||||||||
Additional paid in capital | 1,346 | 1,483 | |||||||||
Accumulated other comprehensive income | 47 | 1 | |||||||||
Retained earnings | 807 | 303 | |||||||||
Total stockholders’ equity | 2,201 | 1,788 | |||||||||
Total liabilities and stockholders’ equity | $ | 31,038 | $ | 23,266 |
December 31, | |||||||
2018 | 2017 | ||||||
Assets | |||||||
Cash | $ | 260 | $ | 122 | |||
Interest-earning deposits | 148 | 82 | |||||
Total cash and cash equivalents | 408 | 204 | |||||
Investment securities available-for-sale | 2,142 | 1,853 | |||||
Investment securities held-to-maturity | 703 | 939 | |||||
Loans held-for-sale ($3,732 and $4,300 measured at fair value, respectively) | 3,869 | 4,321 | |||||
Loans held-for-investment ($10 and $12 measured at fair value, respectively) | 9,088 | 7,713 | |||||
Loans with government guarantees | 392 | 271 | |||||
Less: allowance for loan losses | (128 | ) | (140 | ) | |||
Total loans held-for-investment and loans with government guarantees, net | 9,352 | 7,844 | |||||
Mortgage servicing rights | 290 | 291 | |||||
Net deferred tax asset | 103 | 136 | |||||
Federal Home Loan Bank stock | 303 | 303 | |||||
Premises and equipment, net | 390 | 330 | |||||
Goodwill and intangible assets | 190 | 21 | |||||
Other assets | 781 | 670 | |||||
Total assets | $ | 18,531 | $ | 16,912 | |||
Liabilities and Stockholders’ Equity | |||||||
Noninterest bearing deposits | $ | 2,989 | $ | 2,049 | |||
Interest bearing deposits | 9,391 | 6,885 | |||||
Total deposits | 12,380 | 8,934 | |||||
Short-term Federal Home Loan Bank advances and other | 3,244 | 4,260 | |||||
Long-term Federal Home Loan Bank advances | 150 | 1,405 | |||||
Other long-term debt | 495 | 494 | |||||
Other liabilities ($60 and $60 measured at fair value, respectively) | 692 | 420 | |||||
Total liabilities | 16,961 | 15,513 | |||||
Stockholders’ Equity | |||||||
Common stock $0.01 par value, 80,000,000 and 80,000,000 shares authorized; 57,749,464 and 57,321,228 shares issued and outstanding, respectively | 1 | 1 | |||||
Additional paid in capital | 1,522 | 1,512 | |||||
Accumulated other comprehensive (loss) income | (47 | ) | (16 | ) | |||
Retained earnings/(accumulated deficit) | 94 | (98 | ) | ||||
Total stockholders’ equity | 1,570 | 1,399 | |||||
Total liabilities and stockholders’ equity | $ | 18,531 | $ | 16,912 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Interest Income | |||||||||||||||||
Loans | $ | 748 | $ | 713 | $ | 595 | |||||||||||
Investment securities | 70 | 77 | 86 | ||||||||||||||
Interest-earning deposits and other | 1 | 4 | 2 | ||||||||||||||
Total interest income | 819 | 794 | 683 | ||||||||||||||
Interest Expense | |||||||||||||||||
Deposits | 81 | 138 | 94 | ||||||||||||||
Short-term Federal Home Loan Bank advances and other | 16 | 59 | 68 | ||||||||||||||
Long-term Federal Home Loan Bank advances | 12 | 7 | (4) | ||||||||||||||
Other long-term debt | 25 | 28 | 28 | ||||||||||||||
Total interest expense | 134 | 232 | 186 | ||||||||||||||
Net interest income | 685 | 562 | 497 | ||||||||||||||
Provision (benefit) for credit losses | 149 | 18 | (8) | ||||||||||||||
Net interest income after provision (benefit) for credit losses | 536 | 544 | 505 | ||||||||||||||
Noninterest Income | |||||||||||||||||
Net gain on loan sales | 971 | 335 | 200 | ||||||||||||||
Loan fees and charges | 165 | 100 | 87 | ||||||||||||||
Net return on mortgage servicing rights | 10 | 6 | 36 | ||||||||||||||
Loan administration income | 84 | 30 | 23 | ||||||||||||||
Deposit fees and charges | 32 | 38 | 21 | ||||||||||||||
Other noninterest income | 63 | 101 | 72 | ||||||||||||||
Total noninterest income | 1,325 | 610 | 439 | ||||||||||||||
Noninterest Expense | |||||||||||||||||
Compensation and benefits | 466 | 377 | 318 | ||||||||||||||
Occupancy and equipment | 176 | 161 | 127 | ||||||||||||||
Commissions | 232 | 111 | 80 | ||||||||||||||
Loan processing expense | 98 | 80 | 59 | ||||||||||||||
Legal and professional expense | 31 | 27 | 28 | ||||||||||||||
Federal insurance premiums | 24 | 20 | 22 | ||||||||||||||
Intangible asset amortization | 13 | 15 | 5 | ||||||||||||||
Other noninterest expense | 117 | 97 | 73 | ||||||||||||||
Total noninterest expense | 1,157 | 888 | 712 | ||||||||||||||
Income before income taxes | 704 | 266 | 232 | ||||||||||||||
Provision for income taxes | 166 | 48 | 45 | ||||||||||||||
Net income | $ | 538 | $ | 218 | $ | 187 | |||||||||||
Net income per share | |||||||||||||||||
Basic | $ | 9.59 | $ | 3.85 | $ | 3.26 | |||||||||||
Diluted | $ | 9.52 | $ | 3.80 | $ | 3.21 | |||||||||||
Weighted average shares outstanding | |||||||||||||||||
Basic | 56,094,542 | 56,584,238 | 57,520,289 | ||||||||||||||
Diluted | 56,505,813 | 57,238,978 | 58,322,950 |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Interest Income | |||||||||||
Loans | $ | 595 | $ | 446 | $ | 348 | |||||
Investment securities | 86 | 80 | 68 | ||||||||
Interest-earning deposits and other | 2 | 1 | 1 | ||||||||
Total interest income | 683 | 527 | 417 | ||||||||
Interest Expense | |||||||||||
Deposits | 94 | 52 | 46 | ||||||||
Short-term Federal Home Loan Bank advances and other | 68 | 36 | 5 | ||||||||
Long-term Federal Home Loan Bank advances | (4 | ) | 24 | 27 | |||||||
Other long-term debt | 28 | 25 | 16 | ||||||||
Total interest expense | 186 | 137 | 94 | ||||||||
Net interest income | 497 | 390 | 323 | ||||||||
Provision (benefit) for loan losses | (8 | ) | 6 | (8 | ) | ||||||
Net interest income after provision (benefit) for loan losses | 505 | 384 | 331 | ||||||||
Noninterest Income | |||||||||||
Net gain on loan sales | 200 | 268 | 316 | ||||||||
Loan fees and charges | 87 | 82 | 76 | ||||||||
Net return (loss) on mortgage servicing rights | 36 | 22 | (26 | ) | |||||||
Loan administration income | 23 | 21 | 18 | ||||||||
Deposit fees and charges | 21 | 18 | 22 | ||||||||
Other noninterest income | 72 | 59 | 81 | ||||||||
Total noninterest income | 439 | 470 | 487 | ||||||||
Noninterest Expense | |||||||||||
Compensation and benefits | 318 | 299 | 269 | ||||||||
Occupancy and equipment | 127 | 103 | 85 | ||||||||
Commissions | 80 | 72 | 55 | ||||||||
Loan processing expense | 59 | 57 | 55 | ||||||||
Legal and professional expense | 28 | 30 | 29 | ||||||||
Federal insurance premiums | 22 | 16 | 11 | ||||||||
Intangible asset amortization | 5 | — | — | ||||||||
Other noninterest expense | 73 | 66 | 56 | ||||||||
Total noninterest expense | 712 | 643 | 560 | ||||||||
Income before income taxes | 232 | 211 | 258 | ||||||||
Provision for income taxes | 45 | 148 | 87 | ||||||||
Net income | $ | 187 | $ | 63 | $ | 171 | |||||
Net income per share | |||||||||||
Basic | $ | 3.26 | $ | 1.11 | $ | 2.71 | |||||
Diluted | $ | 3.21 | $ | 1.09 | $ | 2.66 | |||||
Weighted average shares outstanding | |||||||||||
Basic | 57,520,289 | 57,093,868 | 56,569,307 | ||||||||
Diluted | 58,322,950 | 58,178,343 | 57,597,667 |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Net income | $ | 187 | $ | 63 | $ | 171 | |||||
Other comprehensive income (loss), net of tax | |||||||||||
Investment securities | (29 | ) | (10 | ) | (13 | ) | |||||
Derivatives and hedging activities | (2 | ) | 1 | 4 | |||||||
Other comprehensive income (loss), net of tax | (31 | ) | (9 | ) | (9 | ) | |||||
Comprehensive income | $ | 156 | $ | 54 | $ | 162 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net income | $ | 538 | $ | 218 | $ | 187 | |||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||
Investment securities | 51 | 48 | (29) | ||||||||||||||
Derivatives and hedging activities | (5) | 0 | (2) | ||||||||||||||
Other comprehensive income (loss), net of tax | 46 | 48 | (31) | ||||||||||||||
Comprehensive income | $ | 584 | $ | 266 | $ | 156 |
Common Stock | ||||||||||||||||||||
Number of Shares Outstanding | Amount of Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Total Stockholders’ Equity | |||||||||||||||
Balance at December 31, 2017 | 57,321,228 | $ | 1 | $ | 1,512 | $ | (16) | $ | (98) | $ | 1,399 | |||||||||
Net income | — | — | — | — | 187 | 187 | ||||||||||||||
Total other comprehensive loss | — | — | — | (26) | — | (26) | ||||||||||||||
Shares issued from the Employee Stock Purchase Plan | 114,385 | — | 10 | — | — | 10 | ||||||||||||||
Stock-based compensation | 318,560 | — | — | — | — | — | ||||||||||||||
Reclassification of certain income tax effects (1) | — | — | — | (5) | 5 | 0 | ||||||||||||||
Repurchase of common shares (2) | (4,709) | — | — | — | — | — | ||||||||||||||
Balance at December 31, 2018 | 57,749,464 | $ | 1 | $ | 1,522 | $ | (47) | $ | 94 | $ | 1,570 | |||||||||
Net income | — | — | — | — | 218 | 218 | ||||||||||||||
Total other comprehensive income | — | — | — | 48 | — | 48 | ||||||||||||||
Shares issued from the Employee Stock Purchase Plan | 106,881 | — | — | — | — | — | ||||||||||||||
Dividends declared and paid | 376 | — | — | — | (9) | (9) | ||||||||||||||
Stock-based compensation | 292,220 | — | 11 | — | — | 11 | ||||||||||||||
Repurchase of common shares (2) | (1,517,705) | — | (50) | — | — | (50) | ||||||||||||||
Balance at December 31, 2019 | 56,631,236 | $ | 1 | $ | 1,483 | $ | 1 | $ | 303 | $ | 1,788 | |||||||||
Net income | — | — | — | — | 538 | 538 | ||||||||||||||
Total other comprehensive income | — | — | — | 46 | — | 46 | ||||||||||||||
Shares issued from the Employee Stock Purchase Plan | 181,875 | — | — | — | — | — | ||||||||||||||
Dividends declared and paid | 729 | — | — | — | (11) | (11) | ||||||||||||||
Stock-based compensation | 429,874 | — | 13 | — | — | 13 | ||||||||||||||
CECL ASU Adjustment to RE | — | — | — | — | (23) | (23) | ||||||||||||||
Repurchase of common shares (2) | (4,587,647) | — | (150) | — | — | (150) | ||||||||||||||
Balance at December 31, 2020 | 52,656,067 | $ | 1 | $ | 1,346 | $ | 47 | $ | 807 | $ | 2,201 |
Preferred Stock | Common Stock | |||||||||||||||||||||
Number of Shares Outstanding | Amount of Preferred Stock | Number of Shares Outstanding | Amount of Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Total Stockholders’ Equity | |||||||||||||||
Balance at December 31, 2015 | 266,657 | $ | 267 | 56,483,258 | $ | 1 | $ | 1,486 | $ | 2 | $ | (227 | ) | $ | 1,529 | |||||||
Net income | — | — | — | — | — | — | 171 | 171 | ||||||||||||||
Total other comprehensive income (loss) | — | — | — | — | (9 | ) | — | (9 | ) | |||||||||||||
Preferred stock redemption | (266,657 | ) | (267 | ) | — | — | — | — | — | (267 | ) | |||||||||||
Dividends on preferred stock | — | — | — | — | — | — | (105 | ) | (105 | ) | ||||||||||||
Warrant exercise | — | — | — | — | 6 | — | — | 6 | ||||||||||||||
Stock-based compensation | — | — | 341,544 | — | 11 | — | — | 11 | ||||||||||||||
Balance at December 31, 2016 | — | $ | — | 56,824,802 | $ | 1 | $ | 1,503 | $ | (7 | ) | $ | (161 | ) | $ | 1,336 | ||||||
Net income | — | $ | — | — | $ | — | $ | — | $ | — | $ | 63 | $ | 63 | ||||||||
Total other comprehensive income (loss) | — | — | — | — | — | (9 | ) | — | (9 | ) | ||||||||||||
Shares issued for Employee Stock Purchase Plan | — | — | 48,032 | — | — | — | — | — | ||||||||||||||
Warrant exercise | — | — | 154,313 | — | 4 | — | — | 4 | ||||||||||||||
Stock-based compensation | — | — | 294,081 | — | 5 | — | — | 5 | ||||||||||||||
Balance at December 31, 2017 | — | $ | — | 57,321,228 | $ | 1 | $ | 1,512 | $ | (16 | ) | $ | (98 | ) | $ | 1,399 | ||||||
Net income | — | $ | — | — | $ | — | $ | — | $ | — | $ | 187 | $ | 187 | ||||||||
Total other comprehensive income (loss) | — | — | — | — | — | $ | (26 | ) | — | (26 | ) | |||||||||||
Shares issued for Employee Stock Purchase Plan | — | — | 114,385 | — | 10 | — | — | 10 | ||||||||||||||
Stock-based compensation | — | — | 318,560 | — | — | — | — | — | ||||||||||||||
Reclassification of certain income tax effects (1) | — | — | — | — | — | (5 | ) | 5 | — | |||||||||||||
Repurchase of shares included in treasury stock (2) | — | — | (4,709 | ) | — | — | — | — | — | |||||||||||||
Balance at December 31, 2018 | — | $ | — | 57,749,464 | $ | 1 | $ | 1,522 | $ | (47 | ) | $ | 94 | $ | 1,570 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Operating Activities | |||||||||||||||||
Net income | $ | 538 | $ | 218 | $ | 187 | |||||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||||||||
Depreciation and amortization | 76 | 70 | 56 | ||||||||||||||
Provision (benefit) for credit losses | 149 | 18 | (8) | ||||||||||||||
Net gain on loan and asset sales | (971) | (335) | (200) | ||||||||||||||
Proceeds from sales of HFS | 41,799 | 15,866 | 8,935 | ||||||||||||||
Origination, premium paid and purchase of loans, net of principal repayments | (48,857) | (32,715) | (32,261) | ||||||||||||||
Net change in: | |||||||||||||||||
Other | (763) | (205) | (87) | ||||||||||||||
Net cash used in operating activities | $ | (8,029) | $ | (17,083) | $ | (23,378) | |||||||||||
Investing Activities | |||||||||||||||||
Proceeds from sale of AFS securities including loans that have been securitized | $ | 6,756 | $ | 15,873 | $ | 23,721 | |||||||||||
Collection of principal on investment securities AFS | 610 | 184 | 199 | ||||||||||||||
Purchase of investment securities AFS and other | (360) | (500) | (340) | ||||||||||||||
Collection of principal on investment securities HTM | 221 | 106 | 92 | ||||||||||||||
Proceeds received from the sale of LHFI | 488 | 219 | 161 | ||||||||||||||
Net origination, purchase, and principal repayments of LHFI | (4,650) | (3,179) | (978) | ||||||||||||||
Acquisition of premises and equipment, net of proceeds | (54) | (61) | (71) | ||||||||||||||
Net purchase of FHLB stock | (74) | 0 | 0 | ||||||||||||||
Proceeds from the sale of MSRs | 65 | 62 | 334 | ||||||||||||||
Assets acquired in business combinations | 0 | 0 | 1,499 | ||||||||||||||
Other, net | (16) | (16) | (10) | ||||||||||||||
Net cash provided by investing activities | $ | 2,986 | $ | 12,688 | $ | 24,607 | |||||||||||
Financing Activities | |||||||||||||||||
Net change in deposit accounts | $ | 4,826 | $ | 2,766 | $ | 1,072 | |||||||||||
Net change in short-term FHLB borrowings and other short-term debt | (265) | 923 | (1,016) | ||||||||||||||
Proceeds from increases in FHLB long-term advances and other debt | 550 | 550 | 200 | ||||||||||||||
Repayment of long-term FHLB advances | 0 | (50) | (1,455) | ||||||||||||||
Repayment of long-term debt | (3) | 0 | 0 | ||||||||||||||
Proceeds from issuance of subordinated debt | 150 | 0 | 0 | ||||||||||||||
Subordinated debt issuance costs | (2) | 0 | 0 | ||||||||||||||
Net receipt of payments of loans serviced for others | 165 | 284 | 181 | ||||||||||||||
Dividends declared and paid | (11) | (9) | 0 | ||||||||||||||
Stock repurchase | (150) | (50) | 0 | ||||||||||||||
Other | (19) | 5 | (2) | ||||||||||||||
Net cash provided by (used in) by financing activities | $ | 5,241 | $ | 4,419 | $ | (1,020) | |||||||||||
Net increase in cash, cash equivalents and restricted cash (1) | 198 | 24 | 209 | ||||||||||||||
Beginning cash, cash equivalents and restricted cash (1) | 456 | 432 | 223 | ||||||||||||||
Ending cash, cash equivalents and restricted cash (1) | $ | 654 | $ | 456 | $ | 432 | |||||||||||
Supplemental disclosure of cash flow information | |||||||||||||||||
Interest paid on deposits and other borrowings | $ | 133 | $ | 230 | $ | 185 | |||||||||||
Income tax payments | $ | 161 | $ | 4 | $ | 0 | |||||||||||
Non-cash reclassification of investment securities HTM to AFS | $ | 0 | $ | 0 | $ | 144 | |||||||||||
Non-cash reclassification of loans originated LHFI to LHFS | $ | 549 | $ | 120 | $ | 279 | |||||||||||
Non-cash reclassification of LHFS to AFS securities | $ | 6,761 | $ | 15,458 | $ | 23,718 | |||||||||||
MSRs resulting from sale or securitization of loans | $ | 268 | $ | 223 | $ | 356 |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Operating Activities | |||||||||||
Net income | $ | 187 | $ | 63 | $ | 171 | |||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Depreciation and amortization | 56 | 40 | 32 | ||||||||
Representation and warranty (benefit) | (10 | ) | (13 | ) | (19 | ) | |||||
(Benefit) provision for loan losses | (8 | ) | 6 | (8 | ) | ||||||
Net gain on loan and asset sales | (200 | ) | (268 | ) | (314 | ) | |||||
Proceeds from sales of HFS | 8,935 | 9,245 | 16,168 | ||||||||
Origination, premium paid and purchase of loans, net of principal repayments | (32,261 | ) | (34,235 | ) | (32,295 | ) | |||||
Net change in: | |||||||||||
Accrued interest receivable | (11 | ) | (11 | ) | (1 | ) | |||||
Deferred income taxes | 34 | 150 | 78 | ||||||||
Other | (100 | ) | (299 | ) | (152 | ) | |||||
Net cash (used in) operating activities | $ | (23,378 | ) | $ | (25,322 | ) | $ | (16,340 | ) | ||
Investing Activities | |||||||||||
Proceeds from sale of AFS securities including loans that have been securitized | $ | 23,721 | $ | 24,646 | $ | 17,422 | |||||
Collection of principal on investment securities AFS | 199 | 218 | 187 | ||||||||
Purchase of investment securities AFS and other | (340 | ) | (904 | ) | (680 | ) | |||||
Collection of principal on investment securities HTM | 92 | 154 | 190 | ||||||||
Purchase of investment securities HTM and other | — | — | (15 | ) | |||||||
Proceeds received from the sale of LHFI | 161 | 104 | 229 | ||||||||
Net origination, purchase, and principal repayments of LHFI | (978 | ) | (1,760 | ) | (1,054 | ) | |||||
Purchase of bank owned life insurance | — | (50 | ) | (85 | ) | ||||||
Net purchase of FHLB stock | — | (123 | ) | (10 | ) | ||||||
Acquisition of premises and equipment, net of proceeds | (71 | ) | (97 | ) | (52 | ) | |||||
Proceeds from the sale of MSRs | 334 | 309 | 69 | ||||||||
Assets acquired (liabilities assumed) in business combinations | 1,499 | (8 | ) | — | |||||||
Other, net | (10 | ) | 5 | — | |||||||
Net cash provided by investing activities | $ | 24,607 | $ | 22,494 | $ | 16,201 | |||||
Financing Activities | |||||||||||
Net change in deposit accounts | $ | 1,072 | $ | 134 | $ | 866 | |||||
Net change in short term FHLB borrowings and other | (1,016 | ) | 2,480 | (336 | ) | ||||||
Proceeds from increases in FHLB long-term advances and other debt | 200 | 255 | 445 | ||||||||
Repayment of long-term FHLB advances | (1,455 | ) | (50 | ) | (425 | ) | |||||
Net receipt of payments of loans serviced for others | 181 | 22 | (64 | ) | |||||||
Preferred stock dividends | — | — | (105 | ) | |||||||
Redemption of preferred stock | — | — | (267 | ) | |||||||
Other | (2 | ) | 2 | (5 | ) | ||||||
Net cash (used) provided by financing activities | $ | (1,020 | ) | $ | 2,843 | $ | 109 | ||||
Net increase (decrease) in cash, cash equivalents and restricted cash (1) | 209 | 15 | (30 | ) | |||||||
Beginning cash, cash equivalents and restricted cash (1) | 223 | 208 | 238 | ||||||||
Ending cash, cash equivalents and restricted cash (1) | $ | 432 | $ | 223 | $ | 208 | |||||
Supplemental disclosure of cash flow information | |||||||||||
Interest paid on deposits and other borrowings | $ | 185 | $ | 136 | $ | 112 | |||||
Income tax payments | $ | — | $ | 5 | $ | 7 | |||||
Non-cash reclassification of investment securities HTM to AFS | $ | 144 | $ | — | $ | — | |||||
Non-cash reclassification of loans originated LHFI to LHFS | $ | 279 | $ | 131 | $ | 1,331 | |||||
Non-cash reclassification of LHFS to AFS securities | $ | 23,718 | $ | 24,345 | $ | 17,130 | |||||
MSRs resulting from sale or securitization of loans | $ | 356 | $ | 288 | $ | 228 |
December 31, 2020 | |||||
(Dollars in millions) | |||||
Operating Leases (1) | |||||
Weighted-average remaining lease term (years) | 3.64 | ||||
Weighted-average discount rate | 1.85 | % | |||
Right-of-use asset (2) | $ | 23 | |||
Lease liability (3) | $ | 23 |
December 31, 2020 | December 31, 2019 | ||||||||||
(Dollars in millions) | |||||||||||
Within one year | $ | 9 | $ | 9 | |||||||
After one year and within two years | 8 | 7 | |||||||||
After two years and within three years | 5 | 5 | |||||||||
After three years and within four years | 3 | 3 | |||||||||
After four years and within five years | 2 | 1 | |||||||||
After five years | 1 | 2 | |||||||||
Total (1) | $ | 28 | $ | 27 |
For the Years Ended December 31, | ||||||||||||||
Location of Revenue (1) | 2020 | 2019 | ||||||||||||
(Dollars in millions) | ||||||||||||||
Deposit account and other banking income | Deposit fees and charges | $ | 21 | $ | 27 | |||||||||
Debit card interchange fees | Deposit fees and charges | 11 | 11 | |||||||||||
Credit card interchange fees | Other noninterest income | 1 | 2 | |||||||||||
Wealth management | Other noninterest income | 8 | 6 | |||||||||||
Total | $ | 41 | $ | 46 |
January 1, 2020 | ||||||||||||||
Pre-ASC 326 Adoption | Impact of ASC 326 Adoption | As Reported Under ASC 326 | ||||||||||||
(Dollars in millions) | ||||||||||||||
Assets: | ||||||||||||||
Allowance for loan losses | $ | 107 | $ | 23 | $ | 130 | ||||||||
Liabilities: | ||||||||||||||
Reserve for unfunded commitments | $ | 3 | $ | 7 | $ | 10 |
Standard | Description | Effective Date | ||||||||
ASU 2020-10 | Codification Improvements | December 15, 2020 | ||||||||
ASU 2020-08 | Codification Improvements to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs | December 15, 2020 | ||||||||
ASU 2020-06 | Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity | September 1, 2020 | ||||||||
ASU 2020-04 | Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting | March 12, 2020 | ||||||||
ASU 2020-03 | Codification Improvements to Financial Instruments | January 1, 2020 | ||||||||
ASU 2020-02 | Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842)-Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842) ( SEC Update) | February 6, 2020 | ||||||||
ASU 2018-15 | Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) | January 1, 2020 | ||||||||
ASU 2018-13 | Fair Value Measurement (Topic 820): Disclosure | |||||||||
ASU | Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment | January 1, | ||||||||
For the Years Ended December 31, | |||||||||
Location of Revenue (1) | 2018 | 2017 | |||||||
(Dollars in millions) | |||||||||
Deposit account and other banking income | Deposit fees and charges | $ | 16 | $ | 15 | ||||
Interchange fees | Deposit fees and charges | 5 | 3 | ||||||
Interchange fees | Other noninterest income | 1 | 1 | ||||||
Wealth management | Other noninterest income | 9 | 7 | ||||||
Total | $ | 31 | $ | 26 |
Standard | Description | Effective Date | ||||||||
ASU | Simplifying the Accounting for Income Taxes | January 1, | ||||||||
(Dollars in millions) | |||
Assets acquired: | |||
Cash | $ | 9 | |
Loans | 107 | ||
Core deposit intangible (CDI) | 60 | ||
Other assets | 23 | ||
Total assets | 199 | ||
Liabilities assumed: | |||
Deposits | 1,760 | ||
Total liabilities | 1,760 | ||
Fair value of net liabilities assumed | (1,561 | ) | |
Cash consideration (received) | (1,499 | ) | |
Goodwill | $ | 62 |
For the Years Ended December 31, | |||||||
2018 | 2017 | ||||||
(Dollars in millions) | |||||||
Net interest income | $ | 540 | $ | 482 | |||
Net income | $ | 196 | $ | 83 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
(Dollars in millions) | ||||||||||||||
December 31, 2020 | ||||||||||||||
Available-for-sale securities | ||||||||||||||
Agency - Commercial | $ | 1,018 | $ | 43 | $ | 0 | $ | 1,061 | ||||||
Agency - Residential | 707 | 28 | 0 | 735 | ||||||||||
Corporate debt obligations | 75 | 2 | 0 | 77 | ||||||||||
Municipal obligations | 27 | 1 | 0 | 28 | ||||||||||
Other MBS | 42 | 0 | 0 | 42 | ||||||||||
Certificate of deposit | 1 | 0 | 0 | 1 | ||||||||||
Total available-for-sale securities (1) | $ | 1,870 | $ | 74 | $ | 0 | $ | 1,944 | ||||||
Held-to-maturity securities | ||||||||||||||
Agency - Commercial | $ | 193 | $ | 7 | $ | 0 | $ | 200 | ||||||
Agency - Residential | 184 | 9 | 0 | 193 | ||||||||||
Total held-to-maturity securities (1) | $ | 377 | $ | 16 | $ | 0 | $ | 393 | ||||||
December 31, 2019 | ||||||||||||||
Available-for-sale securities | ||||||||||||||
Agency - Commercial | $ | 948 | $ | 2 | $ | (3) | $ | 947 | ||||||
Agency - Residential | 1,015 | 4 | (4) | 1,015 | ||||||||||
Corporate debt obligations | 76 | 1 | 0 | 77 | ||||||||||
Municipal obligations | 31 | 0 | 0 | 31 | ||||||||||
Other MBS | 44 | 1 | 0 | 45 | ||||||||||
Certificate of deposit | 1 | 0 | 0 | 1 | ||||||||||
Total available-for-sale securities (1) | $ | 2,115 | $ | 8 | $ | (7) | $ | 2,116 | ||||||
Held-to-maturity securities | ||||||||||||||
Agency - Commercial | $ | 306 | $ | 0 | $ | (1) | $ | 305 | ||||||
Agency - Residential | 292 | 3 | (1) | 294 | ||||||||||
Total held-to-maturity securities (1) | $ | 598 | $ | 3 | $ | (2) | $ | 599 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(Dollars in millions) | |||||||||||||||
December 31, 2018 | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Agency - Commercial | $ | 1,413 | $ | 4 | $ | (43 | ) | $ | 1,374 | ||||||
Agency - Residential | 686 | — | (24 | ) | 662 | ||||||||||
Corporate debt obligations | 41 | — | — | 41 | |||||||||||
Municipal obligations | 33 | — | (1 | ) | 32 | ||||||||||
Other MBS | 32 | — | — | 32 | |||||||||||
Certificates of Deposit | 1 | 1 | |||||||||||||
Total available-for-sale securities (1) | $ | 2,206 | $ | 4 | $ | (68 | ) | $ | 2,142 | ||||||
Held-to-maturity securities | |||||||||||||||
Agency - Commercial | $ | 349 | $ | — | $ | (13 | ) | $ | 336 | ||||||
Agency - Residential | 354 | — | (9 | ) | 345 | ||||||||||
Total held-to-maturity securities (1) | $ | 703 | $ | — | $ | (22 | ) | $ | 681 | ||||||
December 31, 2017 | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Agency - Commercial | $ | 1,004 | $ | — | $ | (17 | ) | $ | 987 | ||||||
Agency - Residential | 811 | — | (17 | ) | 794 | ||||||||||
Corporate debt obligations | 37 | 1 | — | 38 | |||||||||||
Municipal obligations | 35 | — | (1 | ) | 34 | ||||||||||
Total available-for-sale securities (1) | $ | 1,887 | $ | 1 | $ | (35 | ) | $ | 1,853 | ||||||
Held-to-maturity securities | |||||||||||||||
Agency - Commercial | $ | 526 | $ | — | $ | (9 | ) | $ | 517 | ||||||
Agency - Residential | 413 | — | (6 | ) | 407 | ||||||||||
Total held-to-maturity securities (1) | $ | 939 | $ | — | $ | (15 | ) | $ | 924 |
Unrealized Loss Position with Duration 12 Months and Over | Unrealized Loss Position with Duration Under 12 Months | ||||||||||||||||||||||||||||||||||||||||
Unrealized Loss Position with Duration 12 Months and Over | Unrealized Loss Position with Duration Under 12 Months | Fair Value | Number of Securities | Unrealized Loss | Fair Value | Number of Securities | Unrealized Loss | ||||||||||||||||||||||||||||||||||
Fair Value | Number of Securities | Unrealized Loss | Fair Value | Number of Securities | Unrealized Loss | (Dollars in millions) | |||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities | Available-for-sale securities | ||||||||||||||||||||||||||||||||||||||||
Agency - Commercial | Agency - Commercial | $ | 3 | 1 | $ | 0 | $ | 7 | 2 | $ | 0 | ||||||||||||||||||||||||||||||
Agency - Residential | Agency - Residential | 0 | 0 | 0 | 0 | 1 | 0 | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
Corporate debt obligations | Corporate debt obligations | 0 | 0 | 0 | 10 | 3 | 0 | ||||||||||||||||||||||||||||||||||
Other mortgage-backed securities | Other mortgage-backed securities | 0 | 0 | 0 | 0 | 1 | 0 | ||||||||||||||||||||||||||||||||||
Held-to-maturity securities | Held-to-maturity securities | ||||||||||||||||||||||||||||||||||||||||
Agency - Residential | Agency - Residential | 0 | 0 | 0 | 2 | 3 | 0 | ||||||||||||||||||||||||||||||||||
December 31, 2019 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities | Available-for-sale securities | ||||||||||||||||||||||||||||||||||||||||
Agency - Commercial | $ | 1,025 | 74 | $ | (43 | ) | $ | 1 | 1 | $ | — | Agency - Commercial | $ | 148 | 17 | $ | (3) | $ | 303 | 19 | $ | 0 | |||||||||||||||||||
Agency - Residential | 647 | 79 | (24 | ) | 14 | 5 | — | Agency - Residential | 266 | 26 | (3) | 148 | 14 | (1) | |||||||||||||||||||||||||||
Municipal obligations | 28 | 16 | (1 | ) | 1 | 2 | — | Municipal obligations | 8 | 3 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Corporate debt obligations | — | — | — | 7 | 2 | — | |||||||||||||||||||||||||||||||||||
Held-to-maturity securities | Held-to-maturity securities | ||||||||||||||||||||||||||||||||||||||||
Agency - Commercial | $ | 336 | 26 | $ | (13 | ) | $ | — | — | $ | — | Agency - Commercial | $ | 148 | 13 | $ | (1) | $ | 85 | 6 | $ | 0 | |||||||||||||||||||
Agency - Residential | 345 | 60 | (9 | ) | — | — | — | Agency - Residential | 35 | 7 | (1) | 38 | 10 | 0 | |||||||||||||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||||||||||||||||||
Agency - Commercial | $ | 218 | 20 | $ | (7 | ) | $ | 744 | 41 | $ | (11 | ) | |||||||||||||||||||||||||||||
Agency - Residential | 452 | 36 | (14 | ) | 263 | 33 | (3 | ) | |||||||||||||||||||||||||||||||||
Municipal obligations | 6 | 3 | — | 22 | 9 | — | |||||||||||||||||||||||||||||||||||
Corporate debt obligations | — | — | — | 3 | 1 | — | |||||||||||||||||||||||||||||||||||
Held-to-maturity securities | |||||||||||||||||||||||||||||||||||||||||
Agency - Commercial | $ | 348 | 25 | $ | (8 | ) | $ | 99 | 8 | $ | (1 | ) | |||||||||||||||||||||||||||||
Agency - Residential | 111 | 16 | (3 | ) | 293 | 43 | (3 | ) |
Investment Securities Available-for-Sale | Investment Securities Held-to-Maturity | ||||||||||||||||||||||
Amortized Cost | Fair Value | Weighted-Average Yield (1) | Amortized Cost | Fair Value | Weighted-Average Yield (1) | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Due in one year or less | $ | 5 | $ | 5 | 2.22 | % | $ | 0 | $ | 0 | 0 | % | |||||||||||
Due after one year through five years | 9 | 10 | 2.83 | % | 7 | 8 | 2.44 | % | |||||||||||||||
Due after five years through 10 years | 123 | 127 | 3.95 | % | 7 | 8 | 2.37 | % | |||||||||||||||
Due after 10 years | 1,733 | 1,802 | 2.34 | % | 363 | 377 | 2.41 | % | |||||||||||||||
Total | $ | 1,870 | $ | 1,944 | $ | 377 | $ | 393 |
Investment Securities Available-for-Sale | Investment Securities Held-to-Maturity | ||||||||||||||||||||
Amortized Cost | Fair Value | Weighted-Average Yield | Amortized Cost | Fair Value | Weighted-Average Yield | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||
Due in one year or less | $ | 1 | $ | 1 | 1.31 | % | $ | — | $ | — | — | % | |||||||||
Due after one year through five years | 60 | 59 | 2.51 | % | 10 | 10 | 2.45 | % | |||||||||||||
Due after five years through 10 years | 59 | 59 | 4.41 | % | 11 | 11 | 2.21 | % | |||||||||||||
Due after 10 years | 2,086 | 2,023 | 2.66 | % | 682 | 660 | 2.47 | % | |||||||||||||
Total | $ | 2,206 | $ | 2,142 | $ | 703 | $ | 681 |
December 31, 2018 | December 31, 2017 | December 31, 2020 | December 31, 2019 | |||||||||||||||
(Dollars in millions) | (Dollars in millions) | |||||||||||||||||
Consumer loans | Consumer loans | |||||||||||||||||
Residential first mortgage | $ | 2,999 | $ | 2,754 | Residential first mortgage | $ | 2,266 | $ | 3,154 | |||||||||
Home Equity | 731 | 664 | ||||||||||||||||
Home equity | Home equity | 856 | 1,024 | |||||||||||||||
Other | 314 | 25 | Other | 1,004 | 729 | |||||||||||||
Total consumer loans | 4,044 | 3,443 | Total consumer loans | 4,126 | 4,907 | |||||||||||||
Commercial loans | Commercial loans | |||||||||||||||||
Commercial real estate | 2,152 | 1,932 | Commercial real estate | 3,061 | 2,828 | |||||||||||||
Commercial and industrial | 1,433 | 1,196 | Commercial and industrial | 1,382 | 1,634 | |||||||||||||
Warehouse lending | 1,459 | 1,142 | Warehouse lending | 7,658 | 2,760 | |||||||||||||
Total commercial loans | 5,044 | 4,270 | Total commercial loans | 12,101 | 7,222 | |||||||||||||
Total loans held-for-investment | $ | 9,088 | $ | 7,713 | Total loans held-for-investment | $ | 16,227 | $ | 12,129 |
For the Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Loans Sold (1) | |||||||||||||||||
Performing loans | $ | 492 | $ | 217 | $ | 158 | |||||||||||
Total loans sold | $ | 492 | $ | 217 | $ | 158 | |||||||||||
Net gain associated with loan sales (2) | $ | 3 | $ | 2 | $ | 2 | |||||||||||
Loans Purchased | |||||||||||||||||
Residential | $ | 0 | $ | 0 | $ | 3 | |||||||||||
Home equity | 0 | 249 | 0 | ||||||||||||||
Other consumer (3) | 63 | 51 | 34 | ||||||||||||||
Total loans purchased | $ | 63 | $ | 300 | $ | 37 | |||||||||||
Premium associated with loans purchased | $ | 0 | $ | 11 | $ | 0 |
For the Year Ended | |||||||||||
2018 | 2017 | 2016 | |||||||||
(Dollars in millions) | |||||||||||
Loans Sold (1) | |||||||||||
Performing loans | $ | 158 | $ | 102 | $ | 1,194 | |||||
Nonperforming loans | — | 25 | 110 | ||||||||
Total performing and nonperforming loans sold | $ | 158 | $ | 127 | $ | 1,304 | |||||
Net gain associated with loan sales (2) | $ | 2 | $ | 2 | $ | 12 | |||||
Loans Purchased | |||||||||||
Residential first mortgage loans | 3 | 8 | 175 | ||||||||
HELOC | — | 250 | — | ||||||||
Other consumer | 34 | — | — | ||||||||
Total loans purchased | $ | 37 | $ | 258 | $ | 175 | |||||
Premium associated with loans purchased | $ | — | $ | 9 | $ | 1 |
(1)Upon |
Residential First Mortgage (1) | Home Equity | Other Consumer | Commercial Real Estate | Commercial and Industrial | Warehouse Lending | Total | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Year Ended December 31, 2020 | |||||||||||||||||||||||
Beginning balance, prior to adoption of ASC 326 | $ | 22 | $ | 14 | $ | 6 | $ | 38 | $ | 22 | $ | 5 | $ | 107 | |||||||||
Impact of adopting ASC 326 | 25 | 12 | 10 | (14) | (6) | (4) | 23 | ||||||||||||||||
Provision (benefit) | 8 | (2) | 26 | 60 | 36 | 3 | 131 | ||||||||||||||||
Charge-offs | (6) | (3) | (5) | 0 | (1) | 0 | (15) | ||||||||||||||||
Recoveries | 0 | 4 | 2 | 0 | 0 | 0 | 6 | ||||||||||||||||
Ending allowance balance | $ | 49 | $ | 25 | $ | 39 | $ | 84 | $ | 51 | $ | 4 | $ | 252 | |||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||
Beginning balance | $ | 38 | $ | 15 | $ | 3 | $ | 48 | $ | 18 | $ | 6 | $ | 128 | |||||||||
Provision (benefit) | (14) | (1) | 10 | (10) | 34 | (1) | 18 | ||||||||||||||||
Charge-offs | (3) | (2) | (7) | 0 | (31) | 0 | (43) | ||||||||||||||||
Recoveries | 1 | 2 | 0 | 0 | 1 | 0 | 4 | ||||||||||||||||
Ending allowance balance | $ | 22 | $ | 14 | $ | 6 | $ | 38 | $ | 22 | $ | 5 | $ | 107 | |||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||
Beginning balance | $ | 47 | $ | 22 | $ | 1 | $ | 45 | $ | 19 | $ | 6 | $ | 140 | |||||||||
Provision (benefit) | (7) | (6) | 3 | 3 | (1) | 0 | (8) | ||||||||||||||||
Charge-offs | (4) | (2) | (2) | 0 | 0 | 0 | (8) | ||||||||||||||||
Recoveries | 2 | 1 | 1 | 0 | 0 | 0 | 4 | ||||||||||||||||
Ending allowance balance | $ | 38 | $ | 15 | $ | 3 | $ | 48 | $ | 18 | $ | 6 | $ | 128 |
Residential First Mortgage (1) | Home Equity | Other Consumer | Commercial Real Estate | Commercial and Industrial | Warehouse Lending | Total | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||||||
Beginning balance ALLL | $ | 47 | $ | 22 | $ | 1 | $ | 45 | $ | 19 | $ | 6 | $ | 140 | |||||||||||||
Charge-offs (2) | (4 | ) | (2 | ) | (2 | ) | — | — | — | (8 | ) | ||||||||||||||||
Recoveries | 2 | 1 | 1 | — | — | — | 4 | ||||||||||||||||||||
Provision (benefit) | (7 | ) | (6 | ) | 3 | 3 | (1 | ) | — | (8 | ) | ||||||||||||||||
Ending balance ALLL | $ | 38 | $ | 15 | $ | 3 | $ | 48 | $ | 18 | $ | 6 | $ | 128 | |||||||||||||
Year Ended December 31, 2017 | |||||||||||||||||||||||||||
Beginning balance ALLL | $ | 65 | $ | 24 | $ | 1 | $ | 28 | $ | 17 | $ | 7 | $ | 142 | |||||||||||||
Charge-offs (2) | (8 | ) | (3 | ) | (2 | ) | (1 | ) | — | — | (14 | ) | |||||||||||||||
Recoveries | 1 | 2 | 1 | 1 | 1 | — | 6 | ||||||||||||||||||||
Provision (benefit) | (11 | ) | (1 | ) | 1 | 17 | 1 | (1 | ) | 6 | |||||||||||||||||
Ending balance ALLL | $ | 47 | $ | 22 | $ | 1 | $ | 45 | $ | 19 | $ | 6 | $ | 140 | |||||||||||||
Year Ended December 31, 2016 | |||||||||||||||||||||||||||
Beginning balance ALLL | $ | 116 | $ | 32 | $ | 2 | $ | 18 | $ | 13 | $ | 6 | $ | 187 | |||||||||||||
Charge-offs (2) | (29 | ) | (4 | ) | (3 | ) | — | — | — | (36 | ) | ||||||||||||||||
Recoveries | 2 | — | 3 | 1 | — | — | 6 | ||||||||||||||||||||
Provision (benefit) (3) | (24 | ) | (4 | ) | (1 | ) | 9 | 4 | 1 | (15 | ) | ||||||||||||||||
Ending balance ALLL | $ | 65 | $ | 24 | $ | 1 | $ | 28 | $ | 17 | $ | 7 | $ | 142 |
Residential First Mortgage (1) | Home Equity | Other Consumer | Commercial Real Estate | Commercial and Industrial | Warehouse Lending | Total | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||
Loans held-for-investment (2) | |||||||||||||||||||||||||||
Individually evaluated | $ | 32 | $ | 23 | $ | — | $ | — | $ | — | $ | — | $ | 55 | |||||||||||||
Collectively evaluated | 2,959 | 706 | 314 | 2,152 | 1,433 | 1,459 | 9,023 | ||||||||||||||||||||
Total loans | $ | 2,991 | $ | 729 | $ | 314 | $ | 2,152 | $ | 1,433 | $ | 1,459 | $ | 9,078 | |||||||||||||
Allowance for loan losses (2) | |||||||||||||||||||||||||||
Individually evaluated | $ | 4 | $ | 7 | $ | — | $ | — | $ | — | $ | — | $ | 11 | |||||||||||||
Collectively evaluated | 34 | 8 | 3 | 48 | 18 | 6 | 117 | ||||||||||||||||||||
Total allowance for loan losses | $ | 38 | $ | 15 | $ | 3 | $ | 48 | $ | 18 | $ | 6 | $ | 128 | |||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||
Loans held-for-investment (2) | |||||||||||||||||||||||||||
Individually evaluated | $ | 34 | $ | 27 | $ | — | $ | — | $ | — | $ | — | $ | 61 | |||||||||||||
Collectively evaluated | 2,712 | 633 | 25 | 1,932 | 1,196 | 1,142 | 7,640 | ||||||||||||||||||||
Total loans | $ | 2,746 | $ | 660 | $ | 25 | $ | 1,932 | $ | 1,196 | $ | 1,142 | $ | 7,701 | |||||||||||||
Allowance for loan losses (2) | |||||||||||||||||||||||||||
Individually evaluated | $ | 6 | $ | 10 | $ | — | $ | — | $ | — | $ | — | $ | 16 | |||||||||||||
Collectively evaluated | 41 | 12 | 1 | 45 | 19 | 6 | 124 | ||||||||||||||||||||
Total allowance for loan losses | $ | 47 | $ | 22 | $ | 1 | $ | 45 | $ | 19 | $ | 6 | $ | 140 |
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due (1) | Total Past Due | Current | Total LHFI (3)(4)(5) | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||
Consumer loans | ||||||||||||||||||||
Residential first mortgage | $ | 4 | $ | 4 | $ | 31 | $ | 39 | $ | 2,227 | $ | 2,266 | ||||||||
Home equity | 1 | 1 | 5 | 7 | 849 | 856 | ||||||||||||||
Other | 4 | 1 | 2 | 7 | 997 | 1,004 | ||||||||||||||
Total consumer loans | 9 | 6 | 38 | 53 | 4,073 | 4,126 | ||||||||||||||
Commercial loans | ||||||||||||||||||||
Commercial real estate | 20 | 0 | 3 | 23 | 3,038 | 3,061 | ||||||||||||||
Commercial and industrial | 1 | 0 | 15 | 16 | 1,366 | 1,382 | ||||||||||||||
Warehouse lending | 0 | 0 | 0 | 0 | 7,658 | 7,658 | ||||||||||||||
Total commercial loans | 21 | 0 | 18 | 39 | 12,062 | 12,101 | ||||||||||||||
Total loans (2) | $ | 30 | $ | 6 | $ | 56 | $ | 92 | $ | 16,135 | $ | 16,227 | ||||||||
December 31, 2019 | ||||||||||||||||||||
Consumer loans | ||||||||||||||||||||
Residential first mortgage | $ | 5 | $ | 4 | $ | 21 | $ | 30 | $ | 3,124 | $ | 3,154 | ||||||||
Home equity | 1 | 0 | 4 | 5 | 1,019 | 1,024 | ||||||||||||||
Other | 3 | 1 | 1 | 5 | 724 | 729 | ||||||||||||||
Total consumer loans | 9 | 5 | 26 | 40 | 4,867 | 4,907 | ||||||||||||||
Commercial loans | ||||||||||||||||||||
Commercial real estate | 0 | 0 | 0 | 0 | 2,828 | 2,828 | ||||||||||||||
Commercial and industrial | 0 | 0 | 0 | 0 | 1,634 | 1,634 | ||||||||||||||
Warehouse lending | 0 | 0 | 0 | 0 | 2,760 | 2,760 | ||||||||||||||
Total commercial loans | 0 | 0 | 0 | 0 | 7,222 | 7,222 | ||||||||||||||
Total loans (2) | $ | 9 | $ | 5 | $ | 26 | $ | 40 | $ | 12,089 | $ | 12,129 |
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due (1) | Total Past Due | Current | Total LHFI | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Residential first mortgage | $ | 4 | $ | 2 | $ | 19 | $ | 25 | $ | 2,974 | $ | 2,999 | |||||||||||
Home equity | 1 | — | 3 | 4 | 727 | 731 | |||||||||||||||||
Other | — | — | — | — | 314 | 314 | |||||||||||||||||
Total consumer loans | 5 | 2 | 22 | 29 | 4,015 | $ | 4,044 | ||||||||||||||||
Commercial loans | |||||||||||||||||||||||
Commercial real estate | — | — | — | — | 2,152 | 2,152 | |||||||||||||||||
Commercial and industrial | — | — | — | — | 1,433 | 1,433 | |||||||||||||||||
Warehouse lending | — | — | — | — | 1,459 | 1,459 | |||||||||||||||||
Total commercial loans | — | — | — | — | 5,044 | 5,044 | |||||||||||||||||
Total loans (2) | $ | 5 | $ | 2 | $ | 22 | $ | 29 | $ | 9,059 | $ | 9,088 | |||||||||||
December 31, 2017 | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Residential first mortgage | $ | 2 | $ | 2 | $ | 23 | $ | 27 | $ | 2,727 | $ | 2,754 | |||||||||||
Home equity | 1 | — | 6 | 7 | 657 | 664 | |||||||||||||||||
Other | — | — | — | — | 25 | 25 | |||||||||||||||||
Total consumer loans | 3 | 2 | 29 | 34 | 3,409 | 3,443 | |||||||||||||||||
Commercial loans | |||||||||||||||||||||||
Commercial real estate | — | — | — | — | 1,932 | 1,932 | |||||||||||||||||
Commercial and industrial | — | — | — | — | 1,196 | 1,196 | |||||||||||||||||
Warehouse lending | — | — | — | — | 1,142 | 1,142 | |||||||||||||||||
Total commercial loans | — | — | — | — | 4,270 | 4,270 | |||||||||||||||||
Total loans (2) | $ | 3 | $ | 2 | $ | 29 | $ | 34 | $ | 7,679 | $ | 7,713 |
TDRs | |||||||||||
Performing | Nonperforming | Total | |||||||||
(Dollars in millions) | |||||||||||
December 31, 2020 | |||||||||||
Consumer loans | |||||||||||
Residential first mortgage | $ | 19 | $ | 8 | $ | 27 | |||||
Home equity | 12 | 2 | 14 | ||||||||
Total consumer TDR loans | 31 | 10 | 41 | ||||||||
Commercial Loans | |||||||||||
Commercial real estate | 5 | 0 | 5 | ||||||||
Commercial and industrial | 0 | 0 | 0 | ||||||||
Total commercial TDR loans | 5 | 0 | 5 | ||||||||
Total TDRs (1)(2) | $ | 36 | $ | 10 | $ | 46 | |||||
December 31, 2019 | |||||||||||
Consumer loans | |||||||||||
Residential first mortgage | $ | 20 | $ | 8 | $ | 28 | |||||
Home equity | 18 | 2 | 20 | ||||||||
Total TDRs (1)(2) | $ | 38 | $ | 10 | $ | 48 |
TDRs | |||||||||||
Performing | Nonperforming | Total | |||||||||
(Dollars in millions) | |||||||||||
December 31, 2018 | |||||||||||
Consumer loans | |||||||||||
Residential first mortgage | $ | 22 | $ | 8 | $ | 30 | |||||
Home equity | 22 | 2 | 24 | ||||||||
Total TDRs (1)(2) | $ | 44 | $ | 10 | $ | 54 | |||||
December 31, 2017 | |||||||||||
Consumer loans | |||||||||||
Residential first mortgage | $ | 19 | $ | 12 | $ | 31 | |||||
Home Equity | 24 | 4 | 28 | ||||||||
Total TDRs (1)(2) | $ | 43 | $ | 16 | $ | 59 |
New TDRs | ||||||||||||||
Number of Accounts | Pre-Modification Unpaid Principal Balance | Post-Modification Unpaid Principal Balance (1) | Increase (Decrease) in Allowance at Modification | |||||||||||
(Dollars in millions) | ||||||||||||||
Year Ended December 31, 2018 | ||||||||||||||
Residential first mortgages | 14 | $ | 3 | $ | 3 | $ | — | |||||||
Home equity (2)(3) | 17 | 1 | 1 | — | ||||||||||
Total TDR loans | 31 | $ | 4 | $ | 4 | $ | — | |||||||
Year Ended December 31, 2017 | ||||||||||||||
Residential first mortgages | 16 | $ | 4 | $ | 4 | $ | — | |||||||
Home equity (2)(3) | 82 | 6 | 5 | (1 | ) | |||||||||
Total TDR loans | 98 | $ | 10 | $ | 9 | $ | (1 | ) | ||||||
Year Ended December 31, 2016 | ||||||||||||||
Residential first mortgages | 23 | $ | 4 | $ | 5 | $ | — | |||||||
Home equity (2)(3) | 143 | 9 | 8 | — | ||||||||||
Commercial & Industrial | 1 | 2 | 1 | — | ||||||||||
Total TDR loans | 167 | $ | 15 | $ | 14 | $ | — |
New TDRs | ||||||||||||||
Number of Accounts | Pre-Modification Unpaid Principal Balance | Post-Modification Unpaid Principal Balance (1) | Increase (Decrease) in Allowance at Modification | |||||||||||
(Dollars in millions) | ||||||||||||||
Year Ended December 31, 2020 | ||||||||||||||
Residential first mortgages | 9 | $ | 2 | $ | 2 | $ | 0 | |||||||
Home equity (2)(3) | 3 | 0 | 0 | 0 | ||||||||||
Other consumer | 1 | 0 | 0 | $ | 0 | |||||||||
Commercial real estate | 1 | 5 | 5 | $ | 0 | |||||||||
Total TDR loans | 14 | $ | 7 | $ | 7 | $ | 0 | |||||||
Year Ended December 31, 2019 | ||||||||||||||
Residential first mortgages | 8 | $ | 1 | $ | 1 | $ | 0 | |||||||
Home equity (2)(3) | 6 | 0 | 0 | 0 | ||||||||||
Total TDR loans | 14 | $ | 1 | $ | 1 | $ | 0 | |||||||
Year Ended December 31, 2018 | ||||||||||||||
Residential first mortgages | 14 | $ | 3 | $ | 3 | $ | 0 | |||||||
Home equity (2)(3) | 17 | 1 | 1 | 0 | ||||||||||
Total TDR loans | 31 | $ | 4 | $ | 4 | $ | 0 |
December 31, 2018 | December 31, 2017 | ||||||||||||||||||||||
Recorded Investment | Net Unpaid Principal Balance | Related Allowance | Recorded Investment | Net Unpaid Principal Balance | Related Allowance | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Residential first mortgage | $ | 13 | $ | 16 | $ | — | $ | 11 | $ | 12 | $ | — | |||||||||||
Home equity | 1 | 4 | — | — | — | — | |||||||||||||||||
Total loans with no related allowance recorded | $ | 14 | $ | 20 | $ | — | $ | 11 | $ | 12 | $ | — | |||||||||||
With an allowance recorded | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Residential first mortgage | $ | 19 | $ | 20 | $ | 4 | $ | 22 | $ | 22 | $ | 6 | |||||||||||
Home equity | 22 | 23 | 7 | 24 | 27 | 10 | |||||||||||||||||
Total loans with an allowance recorded | $ | 41 | $ | 43 | $ | 11 | $ | 46 | $ | 49 | $ | 16 | |||||||||||
Total impaired loans | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Residential first mortgage | $ | 32 | $ | 36 | $ | 4 | $ | 33 | $ | 34 | $ | 6 | |||||||||||
Home equity | 23 | 27 | 7 | 24 | 27 | 10 | |||||||||||||||||
Total impaired loans | $ | 55 | $ | 63 | $ | 11 | $ | 57 | $ | 61 | $ | 16 |
For the Years Ended December 31, | |||||||||||||||||||||||
2018 | 2017 | 2016 | |||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Residential first mortgage | $ | 33 | $ | 1 | $ | 38 | $ | 1 | $ | 52 | $ | 1 | |||||||||||
Home equity | 25 | 2 | 28 | 1 | 30 | 2 | |||||||||||||||||
Commercial loans | |||||||||||||||||||||||
Commercial and industrial | 2 | — | — | — | 2 | — | |||||||||||||||||
Total impaired loans | $ | 60 | $ | 3 | $ | 66 | $ | 2 | $ | 84 | $ | 3 |
Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | December 31, 2019 | |||||||||||||||||||||||||||||
Term Loans | ||||||||||||||||||||||||||||||||
Amortized Cost Basis by Closing Year | ||||||||||||||||||||||||||||||||
As of December 31, 2020 | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | ||||||||||||||||||||||||||
Consumer Loans | (Dollars in millions) | |||||||||||||||||||||||||||||||
Residential First Mortgage | ||||||||||||||||||||||||||||||||
Pass | $ | 362 | $ | 544 | $ | 231 | $ | 289 | $ | 252 | $ | 420 | $ | 92 | $ | 15 | $ | 2,205 | $ | 3,107 | ||||||||||||
Watch | 0 | 1 | 1 | 1 | 0 | 17 | 1 | 0 | 21 | 23 | ||||||||||||||||||||||
Substandard | 0 | 3 | 5 | 2 | 0 | 15 | 0 | 0 | 25 | 15 | ||||||||||||||||||||||
Home Equity | ||||||||||||||||||||||||||||||||
Pass | 7 | 31 | 13 | 6 | 2 | 11 | 720 | 48 | 838 | 1,002 | ||||||||||||||||||||||
Watch | 0 | 0 | 0 | 0 | 0 | 11 | 2 | 0 | 13 | 16 | ||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 1 | 1 | 1 | 3 | 3 | ||||||||||||||||||||||
Other Consumer | ||||||||||||||||||||||||||||||||
Pass | 292 | 321 | 145 | 3 | 1 | 6 | 227 | 5 | 1,000 | 727 | ||||||||||||||||||||||
Watch | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 1 | 1 | ||||||||||||||||||||||
Substandard | 1 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 3 | 1 | ||||||||||||||||||||||
Total Consumer Loans (1)(2) | $ | 662 | $ | 901 | $ | 396 | $ | 301 | $ | 255 | $ | 481 | $ | 1,043 | $ | 70 | $ | 4,109 | $ | 4,895 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | |||||||||||||||||||||||||||||
FICO Band | Revolving Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||
Amortized Cost Basis by Closing Year | |||||||||||||||||||||||||||||
As of December 31, 2020 | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | |||||||||||||||||||||||
Consumer Loans | (Dollars in millions) | ||||||||||||||||||||||||||||
Residential First Mortgage | |||||||||||||||||||||||||||||
>750 | $ | 195 | $ | 272 | $ | 118 | $ | 193 | $ | 181 | $ | 231 | $ | 55 | $ | 6 | $ | 1,251 | |||||||||||
700-750 | 119 | 180 | 90 | 85 | 64 | 130 | 25 | 7 | 700 | ||||||||||||||||||||
<700 | 48 | 96 | 29 | 14 | 7 | 91 | 13 | 2 | 300 | ||||||||||||||||||||
Home Equity | |||||||||||||||||||||||||||||
>750 | 2 | 9 | 6 | 2 | 1 | 7 | 324 | 13 | 364 | ||||||||||||||||||||
700-750 | 3 | 12 | 4 | 3 | 1 | 8 | 289 | 20 | 340 | ||||||||||||||||||||
<700 | 2 | 10 | 3 | 1 | 0 | 8 | 110 | 16 | 150 | ||||||||||||||||||||
Other Consumer | |||||||||||||||||||||||||||||
>750 | 209 | 205 | 80 | 2 | 1 | 5 | 213 | 6 | 721 | ||||||||||||||||||||
700-750 | 79 | 107 | 55 | 1 | 0 | 1 | 9 | 0 | 252 | ||||||||||||||||||||
<700 | 5 | 10 | 11 | 0 | 0 | 0 | 5 | 0 | 31 | ||||||||||||||||||||
Total Consumer Loans (1) | $ | 662 | $ | 901 | $ | 396 | $ | 301 | $ | 255 | $ | 481 | $ | 1,043 | $ | 70 | $ | 4,109 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | |||||||||||||||||||||||||||||
LTV Band | Revolving Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||
Amortized Cost Basis by Closing Year | |||||||||||||||||||||||||||||
As of December 31, 2020 | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | |||||||||||||||||||||||
Consumer Loans | (Dollars in millions) | ||||||||||||||||||||||||||||
Residential first mortgage | |||||||||||||||||||||||||||||
>90 | $ | 84 | $ | 260 | $ | 123 | $ | 35 | $ | 3 | $ | 19 | $ | 0 | $ | 0 | $ | 524 | |||||||||||
71-90 | 169 | 180 | 66 | 99 | 72 | 238 | 0 | 0 | 824 | ||||||||||||||||||||
55-70 | 83 | 60 | 22 | 82 | 96 | 122 | 0 | 0 | 465 | ||||||||||||||||||||
<55 | 26 | 48 | 26 | 76 | 81 | 73 | 93 | 15 | 438 | ||||||||||||||||||||
Home Equity | |||||||||||||||||||||||||||||
>90 | 0 | 0 | 0 | 1 | 1 | 10 | 0 | 0 | 12 | ||||||||||||||||||||
71-90 | 5 | 24 | 10 | 4 | 1 | 9 | 548 | 33 | 634 | ||||||||||||||||||||
<=70 | 2 | 7 | 3 | 1 | 0 | 4 | 175 | 16 | 208 | ||||||||||||||||||||
Total (1) | $ | 369 | $ | 579 | $ | 250 | $ | 298 | $ | 254 | $ | 475 | $ | 816 | $ | 64 | $ | 3,105 |
December 31, 2018 | |||||||||||||||||||
Pass | Watch | Special Mention | Substandard | Total Loans | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Consumer Loans | |||||||||||||||||||
Residential First Mortgage | $ | 2,952 | $ | 28 | $ | — | $ | 19 | $ | 2,999 | |||||||||
Home equity | 705 | 23 | — | 3 | 731 | ||||||||||||||
Other Consumer | 314 | — | — | — | 314 | ||||||||||||||
Total Consumer Loans | $ | 3,971 | $ | 51 | $ | — | $ | 22 | $ | 4,044 | |||||||||
Commercial Loans | |||||||||||||||||||
Commercial Real Estate | $ | 2,132 | $ | 14 | $ | 5 | $ | 1 | $ | 2,152 | |||||||||
Commercial and Industrial | 1,351 | 53 | 29 | — | 1,433 | ||||||||||||||
Warehouse | 1,324 | 120 | 15 | — | 1,459 | ||||||||||||||
Total Commercial Loans | $ | 4,807 | $ | 187 | $ | 49 | $ | 1 | $ | 5,044 |
Term Loans | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | December 31, 2019 | ||||||||||||||||||||||||||||
Amortized Cost Basis by Closing Year | ||||||||||||||||||||||||||||||||
As of December 31, 2020 | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | ||||||||||||||||||||||||||
Commercial Loans | (Dollars in million) | |||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||
Pass | $ | 347 | $ | 993 | $ | 439 | $ | 438 | $ | 308 | $ | 280 | $ | 0 | $ | 0 | $ | 2,805 | $ | 2,794 | ||||||||||||
Watch | 21 | 19 | 35 | 51 | 21 | 19 | 0 | 0 | 166 | 24 | ||||||||||||||||||||||
Special mention | 5 | 1 | 16 | 0 | 17 | 14 | 0 | 0 | 53 | 5 | ||||||||||||||||||||||
Substandard | 0 | 11 | 1 | 25 | 0 | 0 | 0 | 0 | 37 | 5 | ||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||
Pass | 319 | 425 | 163 | 149 | 54 | 71 | 19 | 0 | 1,200 | 1,533 | ||||||||||||||||||||||
Watch | 3 | 48 | 28 | 25 | 0 | 2 | 0 | 0 | 106 | 72 | ||||||||||||||||||||||
Special mention | 1 | 0 | 14 | 9 | 0 | 0 | 0 | 0 | 24 | 24 | ||||||||||||||||||||||
Substandard | 22 | 11 | 15 | 4 | 0 | 0 | 0 | 0 | 52 | 5 | ||||||||||||||||||||||
Warehouse | ||||||||||||||||||||||||||||||||
Pass | 7,398 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7,398 | 2,556 | ||||||||||||||||||||||
Watch | 260 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 260 | 189 | ||||||||||||||||||||||
Special mention | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 15 | ||||||||||||||||||||||
Substandard | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Total commercial loans | $ | 8,376 | $ | 1,508 | $ | 711 | $ | 701 | $ | 400 | $ | 386 | $ | 19 | $ | 0 | $ | 12,101 | $ | 7,222 |
December 31, 2017 | |||||||||||||||||||
Pass | Watch | Special Mention | Substandard | Total Loans | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Consumer Loans | |||||||||||||||||||
Residential First Mortgage | $ | 2,706 | $ | 23 | $ | — | $ | 25 | $ | 2,754 | |||||||||
Home equity | 633 | 25 | — | 6 | 664 | ||||||||||||||
Other Consumer | 25 | — | — | — | 25 | ||||||||||||||
Total Consumer Loans | $ | 3,364 | $ | 48 | $ | — | $ | 31 | $ | 3,443 | |||||||||
Commercial Loans | |||||||||||||||||||
Commercial Real Estate | $ | 1,902 | $ | 23 | $ | 7 | $ | — | $ | 1,932 | |||||||||
Commercial and Industrial | 1,135 | 32 | 24 | 5 | 1,196 | ||||||||||||||
Warehouse | 1,014 | 128 | — | — | 1,142 | ||||||||||||||
Total Commercial Loans | $ | 4,051 | $ | 183 | $ | 31 | $ | 5 | $ | 4,270 |
December 31, | December 31, | |||||||||||||||||
2018 | 2017 | 2020 | 2019 | |||||||||||||||
(Dollars in millions) | (Dollars in millions) | |||||||||||||||||
One-to-four family properties | $ | 5 | $ | 5 | One-to-four family properties | $ | 4 | $ | 6 | |||||||||
Commercial properties | 2 | 3 | Commercial properties | 4 | 4 | |||||||||||||
Total repossessed assets | $ | 7 | $ | 8 | Total repossessed assets | $ | 8 | $ | 10 |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(Dollars in millions) | |||||||||||
Beginning balance | $ | 8 | $ | 14 | $ | 17 | |||||
Additions, net | 10 | 18 | 19 | ||||||||
Disposals | (8 | ) | (14 | ) | (19 | ) | |||||
Net (write down) gain on disposal | (3 | ) | (9 | ) | (2 | ) | |||||
Transfers out | — | (1 | ) | (1 | ) | ||||||
Ending balance | $ | 7 | $ | 8 | $ | 14 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Beginning balance | $ | 10 | $ | 7 | $ | 8 | |||||||||||
Additions, net | 8 | 12 | 10 | ||||||||||||||
Disposals | (7) | (4) | (8) | ||||||||||||||
Net write down on disposal | (3) | (5) | (3) | ||||||||||||||
Ending balance | $ | 8 | $ | 10 | $ | 7 |
Estimated Useful Lives | December 31, | |||||||||||||
2020 | 2019 | |||||||||||||
(Dollars in millions) | ||||||||||||||
Land | N/A | $ | 68 | $ | 73 | |||||||||
Computer hardware and software | 3 - 7 years | 410 | 372 | |||||||||||
Office buildings and improvements | 15 - 31.5 years | 195 | 191 | |||||||||||
Furniture, fixtures and equipment | 5 - 10 years | 66 | 68 | |||||||||||
Leased equipment | 3 - 10 years | 19 | 36 | |||||||||||
Leasehold improvements | 5 - 10 years | 10 | 9 | |||||||||||
Fixed assets in progress (1) | N/A | 43 | 40 | |||||||||||
Right-of-use asset | N/A | 23 | 22 | |||||||||||
Total | 834 | 811 | ||||||||||||
Less: accumulated depreciation | (442) | (395) | ||||||||||||
Premises and equipment, net | $ | 392 | $ | 416 |
Estimated Useful Lives | December 31, | ||||||||
2018 | 2017 | ||||||||
(Dollars in millions) | |||||||||
Land | N/A | $ | 74 | $ | 61 | ||||
Computer hardware and software | 3 - 7 years | 366 | 300 | ||||||
Office buildings and improvements | 15 - 31.5 years | 185 | 159 | ||||||
Furniture, fixtures and equipment | 5 - 7 years | 57 | 63 | ||||||
Leased equipment | 3 - 10 years | 50 | 40 | ||||||
Total | 732 | 623 | |||||||
Less accumulated depreciation | (342 | ) | (293 | ) | |||||
Premises and equipment, net | $ | 390 | $ | 330 |
December 31, 2018 | ||||
(Dollars in millions) | ||||
2019 | $ | 9 | ||
2020 | 6 | |||
2021 | 4 | |||
2022 | 2 | |||
2023 | 1 | |||
Thereafter | 3 | |||
Total | $ | 25 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Balance at beginning of period | $ | 291 | $ | 290 | $ | 291 | |||||||||||
Additions from loans sold with servicing retained | 268 | 223 | 356 | ||||||||||||||
Reductions from sales | (71) | (57) | (339) | ||||||||||||||
Decrease in MSR fair value due to pay-offs, pay-downs, run-off, model changes, and other (1) | (109) | (89) | (20) | ||||||||||||||
Changes in estimates of fair value due to interest rate risk (1) (2) | (50) | (76) | 2 | ||||||||||||||
Fair value of MSRs at end of period | $ | 329 | $ | 291 | $ | 290 |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(Dollars in millions) | |||||||||||
Balance at beginning of period | $ | 291 | $ | 335 | $ | 296 | |||||
Additions from loans sold with servicing retained | 356 | 288 | 228 | ||||||||
Reductions from sales | (339 | ) | (310 | ) | (84 | ) | |||||
Changes in fair value due to (1): | |||||||||||
Decrease in MSR value due to pay-offs, pay-downs, and run-off | (16 | ) | (22 | ) | (62 | ) | |||||
Changes in estimates of fair value (2) | (2 | ) | — | (43 | ) | ||||||
Fair value of MSRs at end of period | $ | 290 | $ | 291 | $ | 335 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
Fair value | Fair value | ||||||||||||||||||||||
Actual | 10% adverse change | 20% adverse change | Actual | 10% adverse change | 20% adverse change | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Option adjusted spread | 7.98 | % | $ | 321 | $ | 313 | 5.34 | % | $ | 284 | $ | 280 | |||||||||||
Constant prepayment rate | 10.53 | % | 305 | 283 | 10.59 | % | 271 | 257 | |||||||||||||||
Weighted average cost to service per loan | $ | 81.24 | 325 | 321 | $ | 84.41 | 285 | 282 |
December 31, 2018 | December 31, 2017 | ||||||||||||||||||||||
Fair value impact due to | Fair value impact due to | ||||||||||||||||||||||
Actual | 10% adverse change | 20% adverse change | Actual | 10% adverse change | 20% adverse change | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Option adjusted spread | 5.42 | % | $ | 284 | $ | 280 | 6.29 | % | $ | 286 | $ | 282 | |||||||||||
Constant prepayment rate | 9.57 | % | 278 | 268 | 9.93 | % | 283 | 277 | |||||||||||||||
Weighted average cost to service per loan | $ | 85.57 | 286 | 283 | $ | 73.00 | 288 | 286 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Net return on mortgage servicing rights | |||||||||||||||||
Servicing fees, ancillary income and late fees (1) | $ | 107 | $ | 96 | $ | 65 | |||||||||||
Decrease in MSR fair value due to pay-offs, pay-downs, run-off, model changes and other | (109) | (89) | (20) | ||||||||||||||
Changes in fair value due to interest rate risk | (50) | (76) | 2 | ||||||||||||||
Gain (loss) on MSR derivatives (2) | 65 | 76 | (5) | ||||||||||||||
Net transaction costs | (3) | (1) | (6) | ||||||||||||||
Total return (loss) included in net return on mortgage servicing rights | $ | 10 | $ | 6 | $ | 36 |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(Dollars in millions) | |||||||||||
Net return (loss) on mortgage servicing rights | |||||||||||
Servicing fees, ancillary income and late fees (1) | $ | 65 | $ | 60 | $ | 81 | |||||
Changes in fair value | (18 | ) | (22 | ) | (109 | ) | |||||
Gain (loss) on MSR derivatives (2) | (5 | ) | (8 | ) | — | ||||||
Net transaction costs | (6 | ) | (8 | ) | 2 | ||||||
Total return (loss) included in net return on mortgage servicing rights | $ | 36 | $ | 22 | $ | (26 | ) |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Loan administration income on mortgage loans subserviced | |||||||||||||||||
Servicing fees, ancillary income and late fees (1) | $ | 126 | $ | 106 | $ | 54 | |||||||||||
Charges on subserviced custodial balances (2) | (29) | (67) | (29) | ||||||||||||||
Other servicing charges | (13) | (9) | (2) | ||||||||||||||
Total income on mortgage loans subserviced, included in loan administration | $ | 84 | $ | 30 | $ | 23 |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(Dollars in millions) | |||||||||||
Loan administration income on mortgage loans subserviced | |||||||||||
Servicing fees, ancillary income and late fees (1) | $ | 54 | $ | 35 | $ | 29 | |||||
Other servicing charges | (31 | ) | (14 | ) | (11 | ) | |||||
Total income on mortgage loans subserviced, included in loan administration | $ | 23 | $ | 21 | $ | 18 |
December 31, 2020 (1) | |||||||||||
Notional Amount | Fair Value (2) | Expiration Dates | |||||||||
(Dollars in millions) | |||||||||||
Derivatives in cash flow hedge relationships | |||||||||||
Liabilities | |||||||||||
Interest rate swaps on custodial deposits | $ | 800 | $ | 1 | 2026-2027 | ||||||
Derivatives in fair value hedge relationships | |||||||||||
Liabilities | |||||||||||
Interest rate swaps on HFI residential first mortgages | 100 | 0 | 2024 | ||||||||
Interest rate swaps on AFS securities | 450 | 0 | 2022-2025 | ||||||||
Total hedge accounting swaps | $ | 1,350 | $ | 1 | |||||||
Derivatives not designated as hedging instruments | |||||||||||
Assets | |||||||||||
Futures | $ | 1,346 | $ | 0 | 2021-2023 | ||||||
Mortgage-backed securities forwards | 749 | 14 | 2021 | ||||||||
Rate lock commitments | 10,587 | 208 | 2021 | ||||||||
Interest rate swaps and swaptions | 1,481 | 59 | 2021-2051 | ||||||||
Total derivative assets | $ | 14,163 | $ | 281 | |||||||
Liabilities | |||||||||||
Mortgage-backed securities forwards | $ | 11,194 | $ | 98 | 2021 | ||||||
Rate lock commitments | 115 | 0 | 2021 | ||||||||
Interest rate swaps and swaptions | 1,305 | 4 | 2021-2030 | ||||||||
Total derivative liabilities | $ | 12,614 | $ | 102 |
December 31, 2018 (1) | |||||||||
Notional Amount | Fair Value (2) | Expiration Dates | |||||||
(Dollars in millions) | |||||||||
Derivatives in fair value hedge relationships: | |||||||||
Assets | |||||||||
Interest rate swaps on CDs | $ | 20 | $ | — | 2019 | ||||
Liabilities | |||||||||
Interest rate swaps on CDs | $ | 10 | $ | — | 2019 | ||||
Derivatives not designated as hedging instruments: | |||||||||
Assets | |||||||||
Futures | $ | 248 | $ | — | 2019-2023 | ||||
Mortgage-backed securities forwards | 362 | 4 | 2019 | ||||||
Rate lock commitments | 2,221 | 20 | 2019 | ||||||
Interest rate swaps and swaptions | 1,662 | 23 | 2019-2049 | ||||||
Total derivative assets | $ | 4,493 | $ | 47 | |||||
Liabilities | |||||||||
Futures | $ | 1,513 | $ | 1 | 2019-2023 | ||||
Mortgage-backed securities forwards | 4,625 | 31 | 2019 | ||||||
Rate lock commitments | 45 | — | 2019 | ||||||
Interest rate swaps | 755 | 7 | 2019-2028 | ||||||
Total derivative liabilities | $ | 6,938 | $ | 39 |
December 31, 2019 (1) | |||||||||||
Notional Amount | Fair Value (2) | Expiration Dates | |||||||||
(Dollars in millions) | |||||||||||
Derivatives in fair value hedge relationships | |||||||||||
Assets | |||||||||||
Interest rate swaps on FHLB advances | $ | 200 | $ | 0 | 2020 | ||||||
Interest rate swaps on AFS securities | 100 | 0 | 2022 | ||||||||
Total derivative assets | $ | 300 | $ | 0 | |||||||
Derivatives not designated as hedging instruments | |||||||||||
Assets | |||||||||||
Futures | $ | 550 | $ | 0 | 2020-2023 | ||||||
Mortgage-backed securities forwards | 1,918 | 2 | 2020 | ||||||||
Rate lock commitments | 3,870 | 34 | 2020 | ||||||||
Interest rate swaps | 799 | 26 | 2020-2029 | ||||||||
Total derivative assets | $ | 7,137 | $ | 62 | |||||||
Liabilities | |||||||||||
Mortgage-backed securities forwards | $ | 5,749 | $ | 9 | 2020 | ||||||
Rate lock commitments | 229 | 1 | 2020 | ||||||||
Interest rate swaps and swaptions | 1,662 | 8 | 2020-2050 | ||||||||
Total derivative liabilities | $ | 7,640 | $ | 18 |
December 31, 2017 (1) | |||||||||
Notional Amount | Fair Value (2) | Expiration Dates | |||||||
(Dollars in millions) | |||||||||
Derivatives in cash flow hedge relationships: | |||||||||
Liabilities | |||||||||
Interest rate swaps on FHLB advances | $ | 830 | $ | 1 | 2023-2026 | ||||
Derivatives not designated as hedging instruments: | |||||||||
Assets | |||||||||
Futures | $ | 1,597 | $ | — | 2018-2022 | ||||
Mortgage-backed securities forwards | 2,646 | 4 | 2018 | ||||||
Rate lock commitments | 3,629 | 24 | 2018 | ||||||
Interest rate swaps and swaptions | 1,441 | 11 | 2018-2048 | ||||||
Total derivative assets | $ | 9,313 | $ | 39 | |||||
Liabilities | |||||||||
Futures | $ | 209 | $ | — | 2018-2021 | ||||
Mortgage-backed securities forwards | 3,197 | 6 | 2018 | ||||||
Rate lock commitments | 214 | — | 2018 | ||||||
Interest rate swaps | 617 | 4 | 2018-2027 | ||||||
Total derivative liabilities | $ | 4,237 | $ | 10 |
Gross Amounts Netted in the Statements of Financial Position | Net Amount Presented in the Statements of Financial Position | Gross Amounts Not Offset in the Statements of Financial Position | |||||||||||||||
Gross Amount | Financial Instruments | Cash Collateral | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
December 31, 2020 | |||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||
Liabilities | |||||||||||||||||
Interest rate swaps on AFS securities | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 5 | |||||||
Interest rate swaps on HFI residential first mortgages | 0 | 0 | 0 | 0 | 1 | ||||||||||||
Interest rate swaps on custodial deposits | 1 | 0 | 1 | 0 | 8 | ||||||||||||
Total derivative liabilities | $ | 1 | $ | 0 | $ | 1 | $ | 0 | $ | 14 | |||||||
Derivatives not designated as hedging instruments | |||||||||||||||||
Assets | |||||||||||||||||
Mortgage-backed securities forwards | $ | 14 | $ | 0 | $ | 14 | $ | 0 | $ | 0 | |||||||
Interest rate swaps | 59 | 0 | 59 | 0 | 6 | ||||||||||||
Total derivative assets | $ | 73 | $ | 0 | $ | 73 | $ | 0 | $ | 6 | |||||||
Liabilities | |||||||||||||||||
Mortgage-backed securities forwards | $ | 98 | $ | 0 | $ | 98 | $ | 0 | $ | 68 | |||||||
Interest rate swaps and swaptions (1) | 4 | 0 | 4 | 0 | 26 | ||||||||||||
Total derivative liabilities | $ | 102 | $ | 0 | $ | 102 | $ | 0 | $ | 94 | |||||||
December 31, 2019 | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||
Assets | |||||||||||||||||
Mortgage-backed securities forwards | $ | 2 | $ | 0 | $ | 2 | $ | 0 | $ | 0 | |||||||
Interest rate swaps | 26 | 0 | 26 | 0 | 0 | ||||||||||||
Total derivative assets | $ | 28 | $ | 0 | $ | 28 | $ | 0 | $ | 0 | |||||||
Liabilities | |||||||||||||||||
Mortgage-backed securities forwards | $ | 9 | $ | 0 | $ | 9 | $ | 0 | $ | 24 | |||||||
Interest rate swaps and swaptions (1) | 8 | 0 | 8 | 0 | 39 | ||||||||||||
Total derivative liabilities | $ | 17 | $ | 0 | $ | 17 | $ | 0 | $ | 63 |
Gross Amounts Netted in the Statement of Financial Position | Net Amount Presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||
Gross Amount | Financial Instruments | Cash Collateral | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
December 31, 2018 | |||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Assets | |||||||||||||||||||
Mortgage-backed securities forwards | $ | 4 | $ | — | $ | 4 | $ | — | $ | — | |||||||||
Interest rate swaps and swaptions (1) | 23 | — | 23 | — | 14 | ||||||||||||||
Total derivative assets | $ | 27 | $ | — | $ | 27 | $ | — | $ | 14 | |||||||||
Liabilities | |||||||||||||||||||
Futures | $ | 1 | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||
Mortgage-backed securities forwards | 31 | — | 31 | — | 29 | ||||||||||||||
Interest rate swaps (1) | 7 | — | 7 | — | 23 | ||||||||||||||
Total derivative liabilities | $ | 39 | $ | — | $ | 39 | $ | — | $ | 53 | |||||||||
December 31, 2017 | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Interest rate swaps on FHLB advances (1) | $ | 1 | $ | — | $ | 1 | $ | — | $ | 17 | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Assets | |||||||||||||||||||
Mortgage-backed securities forwards | $ | 4 | $ | — | $ | 4 | $ | — | $ | 8 | |||||||||
Interest rate swaps and swaptions (1) | 11 | — | 11 | — | 10 | ||||||||||||||
Total derivative assets | $ | 15 | $ | — | $ | 15 | $ | — | $ | 18 | |||||||||
Liabilities | |||||||||||||||||||
Futures | $ | — | $ | — | $ | — | $ | — | $ | 2 | |||||||||
Mortgage-backed securities forwards | 6 | — | 6 | — | 2 | ||||||||||||||
Interest rate swaps (1) | 4 | — | 4 | — | 5 | ||||||||||||||
Total derivative liabilities | $ | 10 | $ | — | $ | 10 | $ | — | $ | 9 |
Amount Recorded in Net Interest Income (1) | ||||||||
For the Years Ended December 31, | ||||||||
2018 (2) | 2017 | |||||||
(Dollars in millions) | ||||||||
Gain on cash flow hedging relationships in interest contracts | ||||||||
Amount of gain reclassified from AOCI into income | $ | 30 | $ | 5 | ||||
Total gain on hedges | $ | 30 | $ | 5 |
For the Years Ended December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Derivatives not designated as hedging instruments | Location of Gain (Loss) | |||||||||||||||||||
Futures | Net return on mortgage servicing rights | $ | 1 | $ | (2) | $ | (4) | |||||||||||||
Interest rate swaps and swaptions | Net return on mortgage servicing rights | 28 | 57 | 1 | ||||||||||||||||
Mortgage-backed securities forwards | Net return on mortgage servicing rights | 36 | 21 | (2) | ||||||||||||||||
Rate lock commitments and MSR forwards | Net gain on loan sales | 86 | 35 | (31) | ||||||||||||||||
Forward commitments | Other noninterest income | 0 | 2 | 0 | ||||||||||||||||
Interest rate swaps (1) | Other noninterest income | 3 | 5 | 3 | ||||||||||||||||
Total derivative (loss) gain | $ | 154 | $ | 118 | $ | (33) |
For the Years Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(Dollars in millions) | ||||||||||||
Derivatives not designated as hedging instruments: | Location of Gain/(Loss) | |||||||||||
Futures | Net return (loss) on mortgage servicing rights | $ | (4 | ) | $ | (1 | ) | $ | — | |||
Interest rate swaps and swaptions | Net return (loss) on mortgage servicing rights | 1 | (11 | ) | (5 | ) | ||||||
Mortgage-backed securities forwards | Net return (loss) on mortgage servicing rights | (2 | ) | 4 | 5 | |||||||
Rate lock commitments and forward agency and loan sales | Net gain (loss) on loan sales | (31 | ) | (34 | ) | 26 | ||||||
Forward commitments | Other noninterest income | — | — | (2 | ) | |||||||
Interest rate swaps (1) | Other noninterest income | 3 | 2 | 4 | ||||||||
Total derivative (loss) gain | $ | (33 | ) | $ | (40 | ) | $ | 28 |
December 31, | |||||||
2018 | 2017 | ||||||
(Dollars in millions) | |||||||
Retail deposits | |||||||
Branch retail deposits | |||||||
Demand deposit accounts | $ | 1,297 | $ | 560 | |||
Savings accounts | 2,812 | 3,295 | |||||
Money market demand accounts | 628 | 91 | |||||
Certificates of deposit/CDARS | 2,387 | 1,494 | |||||
Total branch retail deposits | 7,124 | 5,440 | |||||
Commercial deposits (1) | |||||||
Demand deposit accounts | 1,243 | 697 | |||||
Savings accounts | 314 | 258 | |||||
Money market demand accounts | 173 | 102 | |||||
Total commercial retail deposits | 1,730 | 1,057 | |||||
Total retail deposits | 8,854 | 6,497 | |||||
Government deposits | |||||||
Demand deposit accounts | 326 | 251 | |||||
Savings accounts | 567 | 446 | |||||
Certificates of deposit/CDARS | 309 | 376 | |||||
Total government deposits (2) | 1,202 | 1,073 | |||||
Wholesale deposits | 583 | 43 | |||||
Custodial deposits (3) | 1,741 | 1,321 | |||||
Total deposits | $ | 12,380 | $ | 8,934 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(Dollars in millions) | |||||||||||
Retail deposits | |||||||||||
Branch retail deposits | |||||||||||
Savings accounts | $ | 3,437 | $ | 3,030 | |||||||
Demand deposit accounts | 1,726 | 1,318 | |||||||||
Certificates of deposit/CDARS | 1,355 | 2,353 | |||||||||
Money market demand accounts | 490 | 495 | |||||||||
Total branch retail deposits | 7,008 | 7,196 | |||||||||
Commercial deposits (1) | |||||||||||
Demand deposit accounts | 2,294 | 1,438 | |||||||||
Savings accounts | 461 | 342 | |||||||||
Money market demand accounts | 208 | 188 | |||||||||
Total commercial retail deposits | 2,963 | 1,968 | |||||||||
Total retail deposits | 9,971 | 9,164 | |||||||||
Government deposits | |||||||||||
Savings accounts | 778 | 495 | |||||||||
Demand deposit accounts | 529 | 360 | |||||||||
Certificates of deposit/CDARS | 458 | 358 | |||||||||
Total government deposits (2) | 1,765 | 1,213 | |||||||||
Wholesale deposits | 1,031 | 633 | |||||||||
Custodial deposits (3) | 7,206 | 4,136 | |||||||||
Total deposits | $ | 19,973 | $ | 15,146 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(Dollars in millions) | |||||||||||
Three months or less | $ | 220 | $ | 223 | |||||||
Over three months to six months | 220 | 238 | |||||||||
Over six months to twelve months | 153 | 278 | |||||||||
One to two years | 71 | 101 | |||||||||
Thereafter | 19 | 35 | |||||||||
Total | $ | 683 | $ | 875 |
December 31, | |||||||
2018 | 2017 | ||||||
(Dollars in millions) | |||||||
Three months or less | $ | 251 | $ | 159 | |||
Over three months to six months | 165 | 128 | |||||
Over six months to twelve months | 229 | 173 | |||||
One to two years | 139 | 167 | |||||
Thereafter | 33 | 31 | |||||
Total | $ | 817 | $ | 658 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||
Amount | Rate | Amount | Rate | ||||||||||||||
(Dollars in millions) | |||||||||||||||||
Short-term fixed rate term advances | $ | 3,415 | 0.20 | % | $ | 3,695 | 1.61 | % | |||||||||
Other short-term borrowings | 485 | 0.08 | % | 470 | 1.64 | % | |||||||||||
Total short-term Federal Home Loan Bank advances and other borrowings | 3,900 | 4,165 | |||||||||||||||
Long-term fixed rate advances | 1,200 | 1.03 | % | 650 | 1.45 | % | |||||||||||
Total long-term Federal Home Loan Bank advances | 1,200 | 650 | |||||||||||||||
Total Federal Home Loan Bank advances and other borrowings | $ | 5,100 | $ | 4,815 |
December 31, 2018 | December 31, 2017 | ||||||||||||
Amount | Rate | Amount | Rate | ||||||||||
(Dollars in millions) | |||||||||||||
Short-term fixed rate term advances | $ | 2,993 | 2.52 | % | $ | 4,260 | 1.40 | % | |||||
Other short-term borrowings | 251 | 2.87 | % | — | — | % | |||||||
Total short-term Federal Home Loan Bank advances and other borrowings | 3,244 | 4,260 | |||||||||||
Long-term LIBOR adjustable advances | — | — | % | 1,130 | 1.76 | % | |||||||
Long-term fixed rate advances (1) | 150 | 1.53 | % | 275 | 1.41 | % | |||||||
Total long-term Federal Home Loan Bank advances | 150 | 1,405 | |||||||||||
Total Federal Home Loan Bank advances and other borrowings | $ | 3,394 | $ | 5,665 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Maximum outstanding at any month end | $ | 6,841 | $ | 5,005 | $ | 5,740 | |||||||||||
Average outstanding balance | 3,873 | 3,064 | 4,713 | ||||||||||||||
Average remaining borrowing capacity | 5,282 | 4,194 | 2,089 | ||||||||||||||
Weighted average interest rate | 0.72 | % | 1.90 | % | 1.96 | % |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(Dollars in millions) | |||||||||||
Maximum outstanding at any month end | $ | 5,740 | $ | 5,665 | $ | 3,557 | |||||
Average outstanding balance | 4,713 | 4,590 | 2,833 | ||||||||
Average remaining borrowing capacity | 2,089 | 1,195 | 1,137 | ||||||||
Weighted average interest rate | 1.96 | % | 1.30 | % | 1.16 | % |
December 31, 2020 | |||||
(Dollars in millions) | |||||
2021 | $ | 3,900 | |||
2022 | 200 | ||||
2023 | 500 | ||||
2024 | 100 | ||||
Thereafter | 400 | ||||
Total | $ | 5,100 |
December 31, 2018 | |||
(Dollars in millions) | |||
2019 | $ | 3,294 | |
2020 | — | ||
2021 | — | ||
2022 | — | ||
Thereafter | 100 | ||
Total | $ | 3,394 |
December 31, 2018 | December 31, 2017 | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||
Amount | Interest Rate | Amount | Interest Rate | Amount | Interest Rate | Amount | Interest Rate | |||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | |||||||||||||||||||||||||||||
Senior Notes | Senior Notes | |||||||||||||||||||||||||||||
Senior notes, matures 2021 | $ | 248 | 6.125 | % | $ | 247 | 6.125 | % | Senior notes, matures 2021 | $ | 246 | 6.125 | % | $ | 249 | 6.125% | ||||||||||||||
Subordinated Notes | Subordinated Notes | |||||||||||||||||||||||||||||
Notes, matures 2030 | Notes, matures 2030 | 148 | 4.125 | % | 0 | 0 | % | |||||||||||||||||||||||
Trust Preferred Securities | Trust Preferred Securities | |||||||||||||||||||||||||||||
Floating Three Month LIBOR Plus: | Floating Three Month LIBOR Plus: | |||||||||||||||||||||||||||||
Plus 3.25%, matures 2032 | $ | 26 | 6.07 | % | $ | 26 | 4.92 | % | Plus 3.25%, matures 2032 | 26 | 3.50 | % | 26 | 5.20 | % | |||||||||||||||
Plus 3.25%, matures 2033 | 26 | 5.69 | % | 26 | 4.61 | % | Plus 3.25%, matures 2033 | 26 | 3.49 | % | 26 | 5.24 | % | |||||||||||||||||
Plus 3.25%, matures 2033 | 26 | 6.05 | % | 26 | 4.94 | % | Plus 3.25%, matures 2033 | 26 | 3.49 | % | 26 | 5.21 | % | |||||||||||||||||
Plus 2.00%, matures 2035 | 26 | 4.44 | % | �� | 26 | 3.36 | % | Plus 2.00%, matures 2035 | 26 | 2.24 | % | 26 | 3.99 | % | ||||||||||||||||
Plus 2.00%, matures 2035 | 26 | 4.44 | % | 26 | 3.36 | % | Plus 2.00%, matures 2035 | 26 | 2.24 | % | 26 | 3.99 | % | |||||||||||||||||
Plus 1.75%, matures 2035 | 51 | 4.54 | % | 51 | 3.34 | % | Plus 1.75%, matures 2035 | 51 | 1.97 | % | 51 | 3.64 | % | |||||||||||||||||
Plus 1.50%, matures 2035 | 25 | 3.94 | % | 25 | 2.86 | % | Plus 1.50%, matures 2035 | 25 | 1.74 | % | 25 | 3.49 | % | |||||||||||||||||
Plus 1.45%, matures 2037 | 25 | 4.24 | % | 25 | 3.04 | % | Plus 1.45%, matures 2037 | 25 | 1.67 | % | 25 | 3.34 | % | |||||||||||||||||
Plus 2.50%, matures 2037 | 16 | 5.29 | % | 16 | 4.09 | % | Plus 2.50%, matures 2037 | 16 | 2.72 | % | 16 | 4.39 | % | |||||||||||||||||
Total Trust Preferred Securities | 247 | 247 | Total Trust Preferred Securities | 247 | 247 | |||||||||||||||||||||||||
Total other long-term debt | $ | 495 | $ | 494 | Total other long-term debt | $ | 641 | $ | 496 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Investment Securities | |||||||||||||||||
Beginning balance | $ | 1 | $ | (47) | $ | (18) | |||||||||||
Unrealized gain (loss) | 68 | 57 | (30) | ||||||||||||||
Less: Tax provision (benefit) | 16 | 14 | (7) | ||||||||||||||
Net unrealized gain (loss) | 52 | 43 | (23) | ||||||||||||||
Reclassifications out of AOCI (1) | (1) | 6 | (1) | ||||||||||||||
Less: Tax provision | 0 | 1 | 0 | ||||||||||||||
Net unrealized (loss) gain reclassified out of AOCI | (1) | 5 | (1) | ||||||||||||||
Reclassification of certain income tax effects (2) | 0 | 0 | (5) | ||||||||||||||
Other comprehensive income (loss), net of tax | 51 | 48 | (29) | ||||||||||||||
Ending balance | $ | 52 | $ | 1 | $ | (47) | |||||||||||
Cash Flow Hedges | |||||||||||||||||
Beginning balance | $ | 0 | $ | 0 | $ | 2 | |||||||||||
Unrealized (loss) gain | (9) | 0 | 27 | ||||||||||||||
Less: Tax (benefit) provision | (2) | 0 | 7 | ||||||||||||||
Net unrealized (loss) gain | (7) | 0 | 20 | ||||||||||||||
Reclassifications out of AOCI (1) | 2 | 0 | (30) | ||||||||||||||
Less: Tax benefit | 0 | 0 | (8) | ||||||||||||||
Net unrealized gain (loss) reclassified out of AOCI | 2 | 0 | (22) | ||||||||||||||
Other comprehensive loss, net of tax | (5) | 0 | (2) | ||||||||||||||
Ending balance | $ | (5) | $ | 0 | $ | 0 |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(Dollars in millions) | |||||||||||
Investment Securities | |||||||||||
Beginning balance | $ | (18 | ) | $ | (8 | ) | $ | 5 | |||
Unrealized loss | (30 | ) | (19 | ) | (10 | ) | |||||
Less: Tax benefit | (7 | ) | (7 | ) | (3 | ) | |||||
Net unrealized loss | (23 | ) | (12 | ) | (7 | ) | |||||
Reclassifications out of AOCI (1) | (1 | ) | 3 | (9 | ) | ||||||
Less: Tax (benefit) provision | — | 1 | (3 | ) | |||||||
Net unrealized gain (loss) reclassified out of AOCI | (1 | ) | 2 | (6 | ) | ||||||
Reclassification of certain income tax effects (2) | (5 | ) | — | — | |||||||
Other comprehensive loss, net of tax | (29 | ) | (10 | ) | (13 | ) | |||||
Ending balance | $ | (47 | ) | $ | (18 | ) | $ | (8 | ) | ||
Cash Flow Hedges | |||||||||||
Beginning balance | $ | 2 | $ | 1 | $ | (3 | ) | ||||
Unrealized gain (loss) | 27 | 5 | (13 | ) | |||||||
Less: Tax (benefit) provision | 7 | 1 | (5 | ) | |||||||
Net unrealized gain (loss) | 20 | 4 | (8 | ) | |||||||
Reclassifications out of AOCI (1) (3) | (30 | ) | (5 | ) | 19 | ||||||
Less: Tax (benefit) provision | (8 | ) | (2 | ) | 7 | ||||||
Net unrealized gain (loss) reclassified out of AOCI | (22 | ) | (3 | ) | 12 | ||||||
Other comprehensive income/(loss), net of tax | (2 | ) | 1 | 4 | |||||||
Ending balance | $ | — | $ | 2 | $ | 1 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In millions, except share data) | |||||||||||||||||
Net income applicable to common stockholders | $ | 538 | $ | 218 | $ | 187 | |||||||||||
Weighted Average Shares | |||||||||||||||||
Weighted average common shares outstanding | 56,094,542 | 56,584,238 | 57,520,289 | ||||||||||||||
Effect of dilutive securities | |||||||||||||||||
Stock-based awards | 411,271 | 654,740 | 802,661 | ||||||||||||||
Weighted average diluted common shares | 56,505,813 | 57,238,978 | 58,322,950 | ||||||||||||||
Earnings per common share | |||||||||||||||||
Basic earnings per common share | $ | 9.59 | $ | 3.85 | $ | 3.26 | |||||||||||
Effect of dilutive securities | |||||||||||||||||
Stock-based awards | (0.07) | (0.05) | (0.05) | ||||||||||||||
Diluted earnings per common share | $ | 9.52 | $ | 3.80 | $ | 3.21 |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(In millions, except share data) | |||||||||||
Net income | $ | 187 | $ | 63 | $ | 171 | |||||
Deferred cumulative preferred stock dividends | — | — | (18 | ) | |||||||
Net income applicable to common stockholders | $ | 187 | $ | 63 | $ | 153 | |||||
Weighted Average Shares | |||||||||||
Weighted average common shares outstanding | 57,520,289 | 57,093,868 | 56,569,307 | ||||||||
Effect of dilutive securities | |||||||||||
May Investor Warrants | — | 12,287 | 138,314 | ||||||||
Stock-based awards | 802,661 | 1,072,188 | 890,046 | ||||||||
Weighted average diluted common shares | 58,322,950 | 58,178,343 | 57,597,667 | ||||||||
Earnings per common share | |||||||||||
Basic earnings per common share | $ | 3.26 | $ | 1.11 | $ | 2.71 | |||||
Effect of dilutive securities | |||||||||||
May Investor Warrants | — | — | (0.01 | ) | |||||||
Stock-based awards | (0.05 | ) | (0.02 | ) | (0.04 | ) | |||||
Diluted earnings per common share | $ | 3.21 | $ | 1.09 | $ | 2.66 |
For the Years Ended December 31, | ||||||||||||||||||||
2018 (1) | 2017 | 2016 | ||||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Number of Shares | Weighted Average Exercise Price | Number of Shares | Weighted Average Exercise Price | |||||||||||||||
Options outstanding, beginning of year | 40,718 | $ | 80.00 | 45,791 | $ | 80.00 | 53,284 | $ | 80.00 | |||||||||||
Options canceled, forfeited and expired | (4,625 | ) | 80.00 | (5,073 | ) | 80.00 | (7,493 | ) | 80.00 | |||||||||||
Options outstanding, end of year | 36,093 | $ | 80.00 | 40,718 | $ | 80.00 | 45,791 | $ | 80.00 | |||||||||||
Options vested or expected to vest, end of year | 36,093 | $ | 80.00 | 40,718 | $ | 80.00 | 45,791 | $ | 80.00 | |||||||||||
Options exercisable, end of year | 17,991 | $ | 80.00 | 20,286 | $ | 80.00 | 23,576 | $ | 80.00 |
For the Years Ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
Number of Shares | Weighted Average Grant-Date Fair Value per Share | Number of Shares | Weighted Average Grant-Date Fair Value per Share | Number of Shares | Weighted Average Grant-Date Fair Value per Share | |||||||||||||||||||||
Restricted Stock and Restricted Stock Units | ||||||||||||||||||||||||||
Non-vested balance at beginning of period | 1,399,127 | $ | 28.72 | 1,620,568 | $ | 27.27 | 1,290,450 | $ | 20.52 | |||||||||||||||||
Granted | 379,835 | 27.97 | 338,737 | 32.11 | 875,352 | 34.32 | ||||||||||||||||||||
Vested | (537,571) | 27.06 | (379,936) | 26.98 | (401,379) | 23.04 | ||||||||||||||||||||
Canceled and forfeited | (267,205) | 23.13 | (180,242) | 25.66 | (143,855) | 21.46 | ||||||||||||||||||||
Non-vested balance at end of period | 974,186 | $ | 30.88 | 1,399,127 | $ | 28.72 | 1,620,568 | $ | 27.27 |
For the Years Ended December 31, | ||||||||||||||||||||
2018 | 2017 | 2016 | ||||||||||||||||||
Number of Shares | Weighted Average Grant-Date Fair Value per Share | Number of Shares | Weighted Average Grant-Date Fair Value per Share | Number of Shares | Weighted Average Grant-Date Fair Value per Share | |||||||||||||||
Restricted Stock and Restricted Stock Units | ||||||||||||||||||||
Non-vested balance at beginning of period | 1,290,450 | $ | 20.52 | 1,461,910 | $ | 17.68 | 1,299,985 | $ | 16.36 | |||||||||||
Granted | 875,352 | 34.32 | 357,058 | 28.06 | 310,209 | 22.97 | ||||||||||||||
Vested | (401,379 | ) | 23.04 | (385,454 | ) | 17.36 | (134,767 | ) | 15.78 | |||||||||||
Canceled and forfeited | (143,855 | ) | 21.46 | (143,064 | ) | 18.89 | (13,517 | ) | 17.24 | |||||||||||
Non-vested balance at end of period | 1,620,568 | $ | 27.27 | 1,290,450 | $ | 20.52 | 1,461,910 | $ | 17.68 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Current | |||||||||||||||||
Federal | $ | 154 | $ | 17 | $ | 0 | |||||||||||
State | 14 | 6 | 1 | ||||||||||||||
Total current income tax expense | 168 | 23 | 1 | ||||||||||||||
Deferred | |||||||||||||||||
Federal | (10) | 39 | 47 | ||||||||||||||
State | 8 | (14) | (3) | ||||||||||||||
Total deferred income tax expense | (2) | 25 | 44 | ||||||||||||||
Total income tax expense | $ | 166 | $ | 48 | $ | 45 |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(Dollars in millions) | |||||||||||
Current | |||||||||||
Federal | $ | — | $ | 2 | $ | 4 | |||||
State | 1 | — | — | ||||||||
Total current income tax expense | 1 | 2 | 4 | ||||||||
Deferred | |||||||||||
Federal | 47 | 66 | 84 | ||||||||
Federal impact of tax reform | — | 80 | — | ||||||||
State | (3 | ) | — | (1 | ) | ||||||
Total deferred income tax expense | 44 | 146 | 83 | ||||||||
Total income tax expense | $ | 45 | $ | 148 | $ | 87 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Provision at statutory federal income tax rate | $ | 148 | $ | 56 | $ | 49 | |||||||||||
(Decreases) increases resulting from: | |||||||||||||||||
Bank owned life insurance | (2) | (2) | (2) | ||||||||||||||
State income tax (benefit), net of federal income tax effect (net of valuation allowance release) | 18 | (6) | (2) | ||||||||||||||
Low income housing tax losses | (1) | (1) | (1) | ||||||||||||||
Other | 3 | 1 | 1 | ||||||||||||||
Provision for income taxes | $ | 166 | $ | 48 | $ | 45 | |||||||||||
Effective tax provision rate | 23.5 | % | 18.1 | % | 19.4 | % |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(Dollars in millions) | |||||||||||
Provision at statutory federal income tax rate (1) | $ | 49 | $ | 74 | $ | 90 | |||||
Increases (decreases) resulting from: | |||||||||||
Non-deductible compensation | 2 | — | — | ||||||||
Bank Owned Life Insurance | (2 | ) | (3 | ) | (3 | ) | |||||
State income tax benefit, net of federal income tax effect (includes valuation allowance) | (2 | ) | — | (1 | ) | ||||||
Restricted stock compensation | (1 | ) | (2 | ) | — | ||||||
Tax Reform | — | 80 | — | ||||||||
Warrant expense (income) | — | — | 1 | ||||||||
Other | (1 | ) | (1 | ) | — | ||||||
Provision for income taxes | $ | 45 | $ | 148 | $ | 87 | |||||
Effective tax provision rate | 19.4 | % | 70.1 | % | 33.7 | % |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(Dollars in millions) | |||||||||||
Deferred tax assets | |||||||||||
Net operating loss carryforwards (Federal and State) | $ | 36 | $ | 43 | |||||||
Allowance for credit losses | 58 | 26 | |||||||||
Accrued compensation | 15 | 12 | |||||||||
Litigation settlement | 8 | 9 | |||||||||
Lease liability | 6 | 6 | |||||||||
Contingent consideration | 7 | 4 | |||||||||
General business reserves | 11 | 2 | |||||||||
Other | 4 | 11 | |||||||||
Total | $ | 145 | $ | 113 | |||||||
Valuation allowance | (7) | (5) | |||||||||
Total net | $ | 138 | $ | 108 | |||||||
Deferred tax liabilities | |||||||||||
Mark-to-market adjustments | $ | (4) | $ | (12) | |||||||
Premises and equipment | (7) | (7) | |||||||||
State and local taxes | (6) | (7) | |||||||||
Commercial lease financing | (1) | (5) | |||||||||
Mortgage loan servicing rights | (53) | (5) | |||||||||
Right of use asset | (5) | (6) | |||||||||
Total | $ | (76) | $ | (42) | |||||||
Net deferred tax asset | $ | 62 | $ | 66 |
December 31, | |||||||
2018 | 2017 | ||||||
(Dollars in millions) | |||||||
Deferred tax assets | |||||||
Net operating loss carryforwards (Federal and State) | $ | 58 | $ | 110 | |||
Allowance for loan losses | 40 | 43 | |||||
Litigation settlement | 14 | 14 | |||||
Accrued compensation | 10 | 10 | |||||
General business credits | 7 | 3 | |||||
Contingent consideration | 3 | 6 | |||||
Mortgage loan servicing rights | 3 | — | |||||
Representation and warranty reserves | 2 | 3 | |||||
Loan deferred fees and costs | 1 | 2 | |||||
Non-accrual interest revenue | 1 | 1 | |||||
Deferred interest | 1 | 1 | |||||
Other | 3 | 2 | |||||
Total | 143 | 195 | |||||
Valuation allowance | (14 | ) | (20 | ) | |||
Total net | 129 | 175 | |||||
Deferred tax liabilities | |||||||
Mark-to-market adjustments | (11 | ) | (10 | ) | |||
Premises and equipment | (8 | ) | (14 | ) | |||
Commercial lease financing | (4 | ) | (9 | ) | |||
State and local taxes | (3 | ) | (3 | ) | |||
Mortgage loan servicing rights | — | (3 | ) | ||||
Total | (26 | ) | (39 | ) | |||
Net deferred tax asset | $ | 103 | $ | 136 |
Flagstar Bancorp | Actual | Minimum Capital Ratios | Well-Capitalized Under Prompt Corrective Action Provisions | |||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||
Tier 1 capital (to adjusted avg. total assets) | $ | 2,270 | 7.71 | % | $ | 1,178 | 4.0 | % | $ | 1,472 | 5.0 | % | ||||||||
Common equity Tier 1 capital (to RWA) | 2,030 | 9.15 | % | 999 | 4.5 | % | 1,442 | 6.5 | % | |||||||||||
Tier 1 capital (to RWA) | 2,270 | 10.23 | % | 1,331 | 6.0 | % | 1,775 | 8.0 | % | |||||||||||
Total capital (to RWA) | 2,638 | 11.89 | % | 1,775 | 8.0 | % | 2,219 | 10.0 | % | |||||||||||
December 31, 2019 | ||||||||||||||||||||
Tier 1 capital (to adjusted avg. total assets) | $ | 1,720 | 7.57 | % | $ | 909 | 4.0 | % | $ | 1,136 | 5.0 | % | ||||||||
Common equity Tier 1 capital (to RWA) | 1,480 | 9.32 | % | 715 | 4.5 | % | 1,033 | 6.5 | % | |||||||||||
Tier 1 capital (to RWA) | 1,720 | 10.83 | % | 953 | 6.0 | % | 1,271 | 8.0 | % | |||||||||||
Total capital (to RWA) | 1,830 | 11.52 | % | 1,271 | 8.0 | % | 1,589 | 10.0 | % |
Flagstar Bank | Actual | Minimum Capital Ratios | Well-Capitalized Under Prompt Corrective Action Provisions | |||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||
Tier 1 capital (to adjusted avg. total assets) | $ | 2,390 | 8.12 | % | $ | 1,177 | 4.0 | % | $ | 1,472 | 5.0 | % | ||||||||
Common equity Tier 1 capital (to RWA) | 2,390 | 10.77 | % | 999 | 4.5 | % | 1,443 | 6.5 | % | |||||||||||
Tier 1 capital (to RWA) | 2,390 | 10.77 | % | 1,332 | 6.0 | % | 1,775 | 8.0 | % | |||||||||||
Total capital (to RWA) | 2,608 | 11.75 | % | 1,775 | 8.0 | % | 2,219 | 10.0 | % | |||||||||||
December 31, 2019 | ||||||||||||||||||||
Tier 1 capital (to adjusted avg. total assets) | $ | 1,752 | 7.71 | % | $ | 909 | 4.0 | % | $ | 1,136 | 5.0 | % | ||||||||
Common equity Tier 1 capital (to RWA) | 1,752 | 11.04 | % | 714 | 4.5 | % | 1,032 | 6.5 | % | |||||||||||
Tier 1 capital (to RWA) | 1,752 | 11.04 | % | 952 | 6.0 | % | 1,270 | 8.0 | % | |||||||||||
Total capital (to RWA) | 1,862 | 11.73 | % | 1,270 | 8.0 | % | 1,587 | 10.0 | % |
Flagstar Bancorp | Actual | For Capital Adequacy Purposes | Well-Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
(Dollars in millions) | |||||||||||||||||
December 31, 2018 | |||||||||||||||||
Tangible capital (to adjusted avg. total assets) | $ | 1,505 | 8.29 | % | N/A | N/A | N/A | N/A | |||||||||
Tier 1 capital (to adjusted avg. total assets) | 1,505 | 8.29 | % | $ | 726 | 4.0 | % | $ | 908 | 5.0 | % | ||||||
Common equity Tier 1 capital (to RWA) | 1,265 | 10.54 | % | 540 | 4.5 | % | 780 | 6.5 | % | ||||||||
Tier 1 capital (to RWA) | 1,505 | 12.54 | % | 720 | 6.0 | % | 960 | 8.0 | % | ||||||||
Total capital (to RWA) | 1,637 | 13.63 | % | 960 | 8.0 | % | 1,201 | 10.0 | % | ||||||||
December 31, 2017 | |||||||||||||||||
Tangible capital (to adjusted avg. total assets) | $ | 1,442 | 8.51 | % | N/A | N/A | N/A | N/A | |||||||||
Tier 1 capital (to adjusted avg. total assets) | 1,442 | 8.51 | % | $ | 678 | 4.0 | % | $ | 848 | 5.0 | % | ||||||
Common equity Tier 1 capital (to RWA) | 1,216 | 11.50 | % | 476 | 4.5 | % | 688 | 6.5 | % | ||||||||
Tier 1 capital (to RWA) | 1,442 | 13.63 | % | 635 | 6.0 | % | 846 | 8.0 | % | ||||||||
Total capital (to RWA) | 1,576 | 14.90 | % | 846 | 8.0 | % | 1,058 | 10.0 | % |
Flagstar Bank | Actual | For Capital Adequacy Purposes | Well-Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
(Dollars in millions) | |||||||||||||||||
December 31, 2018 | |||||||||||||||||
Tangible capital (to adjusted avg. total assets) | $ | 1,574 | 8.67 | % | N/A | N/A | N/A | N/A | |||||||||
Tier 1 capital (to adjusted avg. total assets) | 1,574 | 8.67 | % | $ | 726 | 4.0 | % | $ | 908 | 5.0 | % | ||||||
Common equity Tier 1 capital (to RWA) | 1,574 | 13.12 | % | 540 | 4.5 | % | 780 | 6.5 | % | ||||||||
Tier 1 capital (to RWA) | 1,574 | 13.12 | % | 720 | 6.0 | % | 960 | 8.0 | % | ||||||||
Total capital (to RWA) | 1,705 | 14.21 | % | 960 | 8.0 | % | 1,200 | 10.0 | % | ||||||||
December 31, 2017 | |||||||||||||||||
Tangible capital (to adjusted avg. total assets) | $ | 1,531 | 9.04 | % | N/A | N/A | N/A | N/A | |||||||||
Tier 1 capital (to adjusted avg. total assets) | 1,531 | 9.04 | % | $ | 677 | 4.0 | % | $ | 847 | 5.0 | % | ||||||
Common equity Tier 1 capital (to RWA) | 1,531 | 14.46 | % | 476 | 4.5 | % | 688 | 6.5 | % | ||||||||
Tier 1 capital (to RWA) | 1,531 | 14.46 | % | 635 | 6.0 | % | 847 | 8.0 | % | ||||||||
Total capital (to RWA) | 1,664 | 15.72 | % | 847 | 8.0 | % | 1,059 | 10.0 | % |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(Dollars in millions) | |||||||||||
Commitments to extend credit | |||||||||||
Mortgage loan commitments including interest rate locks | $ | 10,702 | $ | 4,099 | |||||||
Warehouse loan commitments | 2,849 | 1,944 | |||||||||
Commercial and industrial commitments | 1,271 | 1,107 | |||||||||
Other construction commitments | 1,934 | 2,015 | |||||||||
HELOC commitments | 544 | 558 | |||||||||
Other consumer commitments | 121 | 175 | |||||||||
Standby and commercial letters of credit | 95 | 82 |
December 31, | |||||||
2018 | 2017 | ||||||
(Dollars in millions) | |||||||
Commitments to extend credit | |||||||
Mortgage loan interest-rate lock commitments | $ | 2,293 | $ | 3,667 | |||
Warehouse loan commitments | 2,334 | 1,618 | |||||
Commercial and industrial commitments | 918 | 695 | |||||
Other commercial commitments | 1,260 | 1,021 | |||||
HELOC commitments | 429 | 283 | |||||
Other consumer commitments | 108 | 15 | |||||
Standby and commercial letters of credit | 63 | 50 |
December 31, 2018 | December 31, 2020 | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||
Investment securities available-for-sale | Investment securities available-for-sale | ||||||||||||||||||||||||||||
Agency - Commercial | $ | — | $ | 1,374 | $ | — | $ | 1,374 | Agency - Commercial | $ | 0 | $ | 1,061 | $ | 0 | $ | 1,061 | ||||||||||||
Agency - Residential | — | 662 | — | 662 | Agency - Residential | 0 | 735 | 0 | 735 | ||||||||||||||||||||
Municipal obligations | — | 32 | — | 32 | Municipal obligations | — | 28 | 0 | 28 | ||||||||||||||||||||
Corporate debt obligations | — | 42 | — | 42 | Corporate debt obligations | 0 | 77 | 0 | 77 | ||||||||||||||||||||
Other MBS | — | 32 | — | 32 | Other MBS | 0 | 42 | 0 | 42 | ||||||||||||||||||||
Certificate of deposit | Certificate of deposit | 0 | 1 | 0 | 1 | ||||||||||||||||||||||||
Loans held-for-sale | Loans held-for-sale | ||||||||||||||||||||||||||||
Residential first mortgage loans | — | 3,732 | — | 3,732 | Residential first mortgage loans | 0 | 7,009 | 0 | 7,009 | ||||||||||||||||||||
Loans held-for-investment | Loans held-for-investment | ||||||||||||||||||||||||||||
Residential first mortgage loans | — | 8 | — | 8 | Residential first mortgage loans | 0 | 11 | 0 | 11 | ||||||||||||||||||||
Home equity | — | — | 2 | 2 | Home equity | 0 | 0 | 2 | 2 | ||||||||||||||||||||
Mortgage servicing rights | — | — | 290 | 290 | Mortgage servicing rights | 0 | 0 | 329 | 329 | ||||||||||||||||||||
Derivative assets | Derivative assets | ||||||||||||||||||||||||||||
Rate lock commitments (fallout-adjusted) | — | — | 20 | 20 | Rate lock commitments (fallout-adjusted) | 0 | 0 | 208 | 208 | ||||||||||||||||||||
Mortgage-backed securities forwards | — | 4 | — | 4 | Mortgage-backed securities forwards | 0 | 14 | 0 | 14 | ||||||||||||||||||||
Interest rate swaps and swaptions | — | 23 | — | 23 | Interest rate swaps and swaptions | 0 | 59 | 0 | 59 | ||||||||||||||||||||
Total assets at fair value | $ | — | $ | 5,909 | $ | 312 | $ | 6,221 | Total assets at fair value | $ | 0 | $ | 9,037 | $ | 539 | $ | 9,576 | ||||||||||||
Derivative liabilities | Derivative liabilities | ||||||||||||||||||||||||||||
Futures | $ | — | $ | (1 | ) | $ | — | $ | (1 | ) | |||||||||||||||||||
Mortgage-backed securities forwards | — | (31 | ) | — | (31 | ) | Mortgage-backed securities forwards | 0 | (98) | 0 | $ | (98) | |||||||||||||||||
Interest rate swaps | — | (7 | ) | — | (7 | ) | |||||||||||||||||||||||
DOJ litigation settlement | — | — | (60 | ) | (60 | ) | |||||||||||||||||||||||
Contingent consideration | — | — | (6 | ) | (6 | ) | |||||||||||||||||||||||
Interest rate swaps and swaptions | Interest rate swaps and swaptions | 0 | (4) | 0 | (4) | ||||||||||||||||||||||||
DOJ Liability | DOJ Liability | 0 | 0 | (35) | (35) | ||||||||||||||||||||||||
Total liabilities at fair value | $ | — | $ | (39 | ) | $ | (66 | ) | $ | (105 | ) | Total liabilities at fair value | $ | 0 | $ | (102) | $ | (35) | $ | (137) |
December 31, 2019 | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||
(Dollars in millions) | ||||||||||||||
Investment securities available-for-sale | ||||||||||||||
Agency - Commercial | $ | 0 | $ | 947 | $ | 0 | $ | 947 | ||||||
Agency - Residential | 0 | 1,015 | 0 | 1,015 | ||||||||||
Municipal obligations | 0 | 31 | 0 | 31 | ||||||||||
Corporate debt obligations | 0 | 77 | 0 | 77 | ||||||||||
Other MBS | 0 | 45 | 0 | 45 | ||||||||||
Certificate of deposit | 0 | 1 | 0 | 1 | ||||||||||
Loans held-for-sale | ||||||||||||||
Residential first mortgage loans | 0 | 5,219 | 0 | 5,219 | ||||||||||
Loans held-for-investment | ||||||||||||||
Residential first mortgage loans | 0 | 10 | 0 | 10 | ||||||||||
Home equity | 0 | 0 | 2 | 2 | ||||||||||
Mortgage servicing rights | 0 | 0 | 291 | 291 | ||||||||||
Derivative assets | ||||||||||||||
Rate lock commitments (fallout-adjusted) | 0 | 0 | 34 | 34 | ||||||||||
Mortgage-backed securities forwards | 0 | 2 | 0 | 2 | ||||||||||
Interest rate swaps and swaptions | 0 | 26 | 0 | 26 | ||||||||||
Total assets at fair value | $ | 0 | $ | 7,373 | $ | 327 | $ | 7,700 | ||||||
Derivative liabilities | ||||||||||||||
Rate lock commitments (fallout-adjusted) | $ | 0 | $ | 0 | $ | (1) | $ | (1) | ||||||
Mortgage-backed securities forwards | 0 | (9) | 0 | (9) | ||||||||||
Interest rate swaps | 0 | (8) | 0 | (8) | ||||||||||
DOJ Liability | 0 | 0 | (35) | (35) | ||||||||||
Contingent consideration | 0 | 0 | (10) | (10) | ||||||||||
Total liabilities at fair value | $ | 0 | $ | (17) | $ | (46) | $ | (63) |
December 31, 2017 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||
(Dollars in millions) | |||||||||||||||
Investment securities available-for-sale | |||||||||||||||
Agency - Commercial | $ | — | $ | 987 | $ | — | $ | 987 | |||||||
Agency - Residential | — | 794 | — | 794 | |||||||||||
Municipal obligations | — | 34 | — | 34 | |||||||||||
Corporate debt obligations | — | 38 | — | 38 | |||||||||||
Loans held-for-sale | |||||||||||||||
Residential first mortgage loans | — | 4,300 | — | 4,300 | |||||||||||
Loans held-for-investment | |||||||||||||||
Residential first mortgage loans | — | 8 | — | 8 | |||||||||||
Home equity | — | — | 4 | 4 | |||||||||||
Mortgage servicing rights | — | — | 291 | 291 | |||||||||||
Derivative assets | |||||||||||||||
Rate lock commitments (fallout-adjusted) | — | — | 24 | 24 | |||||||||||
Mortgage-backed securities forwards | — | 4 | — | 4 | |||||||||||
Interest rate swaps and swaptions | — | 11 | — | 11 | |||||||||||
Total assets at fair value | $ | — | $ | 6,176 | $ | 319 | $ | 6,495 | |||||||
Derivative liabilities | |||||||||||||||
Interest rate swap on FHLB advances | $ | — | $ | (1 | ) | $ | — | $ | (1 | ) | |||||
Mortgage-backed securities forwards | — | (6 | ) | — | (6 | ) | |||||||||
Interest rate swaps | — | (4 | ) | — | (4 | ) | |||||||||
DOJ litigation settlement | — | — | (60 | ) | (60 | ) | |||||||||
Contingent consideration | — | — | (25 | ) | (25 | ) | |||||||||
Total liabilities at fair value | $ | — | $ | (11 | ) | $ | (85 | ) | $ | (96 | ) |
Balance at Beginning of Year | Total Gains / (Losses) Recorded in Earnings (1) | Purchases / Originations | Sales | Settlement | Transfers In (Out) | Balance at End of Year | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Loans held-for-investment | |||||||||||||||||||||||||||
Home equity | $ | 4 | $ | — | $ | — | $ | — | $ | (2 | ) | $ | — | $ | 2 | ||||||||||||
Mortgage servicing rights (2) | 291 | (18 | ) | 356 | (339 | ) | — | — | 290 | ||||||||||||||||||
Rate lock commitments (net) (2)(3) | 24 | (34 | ) | 235 | — | — | (205 | ) | 20 | ||||||||||||||||||
Totals | $ | 319 | $ | (52 | ) | $ | 591 | $ | (339 | ) | $ | (2 | ) | $ | (205 | ) | $ | 312 | |||||||||
Liabilities | |||||||||||||||||||||||||||
DOJ litigation settlement | $ | (60 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (60 | ) | |||||||||||
Contingent consideration | (25 | ) | 13 | — | — | 6 | — | (6 | ) | ||||||||||||||||||
Totals | $ | (85 | ) | $ | 13 | $ | — | $ | — | $ | 6 | $ | — | $ | (66 | ) | |||||||||||
Year Ended December 31, 2017 | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Loans held-for-sale | |||||||||||||||||||||||||||
Home equity | $ | — | $ | 1 | $ | — | $ | (52 | ) | $ | (1 | ) | $ | 52 | $ | — | |||||||||||
Loans held-for-investment | |||||||||||||||||||||||||||
Home equity | 65 | 2 | — | — | (8 | ) | (55 | ) | 4 | ||||||||||||||||||
Mortgage servicing rights (2) | 335 | (22 | ) | 288 | (310 | ) | — | — | 291 | ||||||||||||||||||
Rate lock commitments (net) (2)(3) | 18 | 54 | 267 | — | — | (315 | ) | 24 | |||||||||||||||||||
Totals | $ | 418 | $ | 35 | $ | 555 | $ | (362 | ) | $ | (9 | ) | $ | (318 | ) | $ | 319 | ||||||||||
Liabilities | |||||||||||||||||||||||||||
DOJ litigation settlement | $ | (60 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (60 | ) | |||||||||||
Contingent consideration | — | (1 | ) | (25 | ) | — | 1 | — | (25 | ) | |||||||||||||||||
Totals | $ | (60 | ) | $ | (1 | ) | $ | (25 | ) | $ | — | $ | 1 | $ | — | $ | (85 | ) | |||||||||
Year Ended December 31, 2016 | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Loans held-for-investment | |||||||||||||||||||||||||||
Home equity | $ | 106 | $ | 5 | $ | — | $ | — | $ | (46 | ) | $ | — | $ | 65 | ||||||||||||
Mortgage servicing rights (2) | 296 | (105 | ) | 228 | (84 | ) | — | — | 335 | ||||||||||||||||||
Rate lock commitments (net) (2)(3) | 26 | 25 | 325 | — | — | (358 | ) | 18 | |||||||||||||||||||
Totals | $ | 428 | $ | (75 | ) | $ | 553 | $ | (84 | ) | $ | (46 | ) | $ | (358 | ) | $ | 418 | |||||||||
Liabilities | |||||||||||||||||||||||||||
DOJ litigation settlement | $ | (84 | ) | $ | 24 | $ | — | $ | — | $ | — | $ | — | $ | (60 | ) |
Balance at Beginning of Year | Total Gains / (Losses) Recorded in Earnings (1) | Purchases / Originations | Sales | Settlement | Transfers In (Out) | Balance at End of Year | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Year Ended December 31, 2020 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Loans held-for-investment | |||||||||||||||||||||||
Home equity | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | |||||||||
Mortgage servicing rights (1) | 291 | (159) | 268 | (71) | 0 | 0 | 329 | ||||||||||||||||
Rate lock commitments (net) (1)(2) | 34 | 358 | 1,005 | 0 | 0 | (1,189) | 208 | ||||||||||||||||
Totals | $ | 327 | $ | 199 | $ | 1,273 | $ | (71) | $ | 0 | $ | (1,189) | $ | 539 | |||||||||
Liabilities | |||||||||||||||||||||||
DOJ Liability | $ | (35) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (35) | |||||||||
Contingent consideration | (10) | (17) | 0 | 0 | 27 | 0 | 0 | ||||||||||||||||
Totals | $ | (45) | $ | (17) | $ | 0 | $ | 0 | $ | 27 | $ | 0 | $ | (35) | |||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Loans held-for-investment | |||||||||||||||||||||||
Home equity | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | |||||||||
Mortgage servicing rights (1) | 290 | (165) | 223 | (57) | 0 | 0 | 291 | ||||||||||||||||
Rate lock commitments (net) (1)(2) | 20 | 86 | 326 | 0 | 0 | (398) | 34 | ||||||||||||||||
Totals | $ | 312 | $ | (79) | $ | 549 | $ | (57) | $ | 0 | $ | (398) | $ | 327 | |||||||||
Liabilities | |||||||||||||||||||||||
DOJ Liability | $ | (60) | $ | 25 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (35) | |||||||||
Contingent consideration | (6) | (7) | 0 | 0 | 3 | 0 | (10) | ||||||||||||||||
Totals | $ | (66) | $ | 18 | $ | 0 | $ | 0 | $ | 3 | $ | 0 | $ | (45) | |||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Loans held-for-investment | |||||||||||||||||||||||
Home equity | $ | 4 | $ | 0 | $ | 0 | $ | 0 | $ | (2) | $ | 0 | $ | 2 | |||||||||
Mortgage servicing rights (1) | 291 | (18) | 356 | (339) | 0 | 0 | 290 | ||||||||||||||||
Rate lock commitments (net) (1)(2) | 24 | (34) | 235 | 0 | 0 | (205) | 20 | ||||||||||||||||
Totals | $ | 319 | $ | (52) | $ | 591 | $ | (339) | $ | (2) | $ | (205) | $ | 312 | |||||||||
Liabilities | |||||||||||||||||||||||
DOJ Liability | $ | (60) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | (60) | |||||||||
Contingent consideration | (25) | 13 | 0 | 0 | 6 | 0 | (6) | ||||||||||||||||
Totals | $ | (85) | $ | 13 | $ | 0 | $ | 0 | $ | 6 | $ | 0 | $ | (66) |
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | |||||||
(Dollars in millions) | ||||||||||
December 31, 2018 | ||||||||||
Assets | ||||||||||
Loans held-for-investment | ||||||||||
Home equity | $ | 2 | Discounted cash flows | Discount rate Constant prepayment rate Constant default rate | 7.2% - 10.8% (9.0%) 13.6% - 20.3% (16.9%) 3.0% - 4.6% (3.8%) | (1) | ||||
Mortgage servicing rights | $ | 290 | Discounted cash flows | Option adjusted spread Constant prepayment rate Weighted average cost to service per loan | 2.1% - 25.9% (5.4%) 0% - 10.7% (9.6%) $67 - $95 ($86) | (1) | ||||
Rate lock commitments (net) | $ | 20 | Consensus pricing | Origination pull-through rate | 75.0% - 87.2% (76.8%) | (1) | ||||
Liabilities | ||||||||||
DOJ litigation settlement | $ | (60 | ) | Discounted cash flows | See description below | See description below | ||||
Contingent consideration | $ | (6 | ) | Discounted cash flows | Beta Equity volatility | 0.6 - 1.6 (1.1) 26.6% - 58.9% (40.0%) | (2) |
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | |||||||
(Dollars in millions) | ||||||||||
December 31, 2017 | ||||||||||
Assets | ||||||||||
Loans held-for-investment | ||||||||||
Home equity | $ | 4 | Discounted cash flows | Discount rate Constant prepayment rate Constant default rate | 7.2% - 10.8% (9.0%) 5.1% - 7.7% (6.4%) 3.0% - 4.5% (3.6%) | (1) | ||||
Mortgage servicing rights | $ | 291 | Discounted cash flows | Option adjusted spread Constant prepayment rate Weighted average cost to service per loan | 5.0% - 7.5% (6.3%) 8.0% - 11.8% (9.9%) $58 - $87 ($73) | (1) | ||||
Rate lock commitments (net) | $ | 24 | Consensus pricing | Origination pull-through rate | 64.7% - 97.1% (82.0%) | (1) | ||||
Liabilities | ||||||||||
DOJ litigation settlement | $ | (60 | ) | Discounted cash flows | See description below | See description below | ||||
Contingent consideration | $ | (25 | ) | Discounted cash flows | Beta Equity volatility | 0.6 - 1.6 (1.1) 26.6% - 58.9% (40.0%) | (2) |
Fair Value | Valuation Technique | Unobservable | Range (Weighted Average) |
(Dollars in millions) | |||||||||||||||||
December 31, 2020 | |||||||||||||||||
Loans held-for-investment | |||||||||||||||||
Home equity | $ | 2 | Discounted cash flows | Discount rate Constant prepayment rate Constant default rate | 7.2% -10.8% (9.0%) 12.6% - 18.9% (15.8%) 1.5%-2.3% (1.9%) | ||||||||||||
Mortgage servicing rights | $ | 329 | Discounted cash flows | Option adjusted spread Constant prepayment rate Weighted average cost to service per loan | 3.4% - 21.2% (8.0%) 0% - 13.3% (10.5%) $67 - $95 ($81) | ||||||||||||
Rate lock commitments (net) | $ | 208 | Consensus pricing | Closing pull-through rate | 75.7% - 87.2% (77.5%) | ||||||||||||
Liabilities | |||||||||||||||||
DOJ Liability | $ | (35) | Discounted cash flows | See description below | See description below |
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||||||||||
(Dollars in millions) | |||||||||||||||||
December 31, 2019 | |||||||||||||||||
Assets | |||||||||||||||||
Loans held-for-investment | |||||||||||||||||
Home equity | $ | 2 | Discounted cash flows | Discount rate Constant prepayment rate Constant default rate | 7.2% -10.8% (9.0%) 13.0% - 19.5% (16.2%) 2.7%-4.0% (3.3%) | (1) | |||||||||||
Mortgage servicing rights | $ | 291 | Discounted cash flows | Option adjusted spread Constant prepayment rate Weighted average cost to service per loan | 2.4% - 20.4% (5.3%) 0% - 12.3% (10.6%) $67 - $95 ($84) | (1) | |||||||||||
Rate lock commitments (net) | $ | 34 | Consensus pricing | Origination pull-through rate | 80.0% - 87.2% (81.5%) | (1) | |||||||||||
Liabilities | |||||||||||||||||
DOJ Liability | $ | (35) | Discounted cash flows | See description below | See description below | ||||||||||||
Contingent consideration | $ | (10) | Discounted cash flows | See description below | See description below | (2) |
Total (1) | Level 2 | Level 3 | Gains/(Losses) | |||||||||||
(Dollars in millions) | ||||||||||||||
December 31, 2020 | ||||||||||||||
Residential first mortgage loans | $ | 30 | $ | 30 | $ | 0 | $ | (1) | ||||||
Commercial loans | 57 | 0 | 57 | 0 | ||||||||||
Impaired loans held-for-investment (2) | ||||||||||||||
Residential first mortgage loans | 24 | 0 | 24 | (3) | ||||||||||
Repossessed assets (3) | 8 | 0 | 8 | (3) | ||||||||||
Totals | $ | 119 | $ | 30 | $ | 89 | $ | (7) | ||||||
December 31, 2019 | ||||||||||||||
Loans held-for-sale (2) | $ | 6 | $ | 6 | $ | 0 | $ | (1) | ||||||
Impaired loans held-for-investment (2) | ||||||||||||||
Residential first mortgage loans | 14 | 0 | 14 | (5) | ||||||||||
Repossessed assets (3) | 10 | 0 | 10 | (3) | ||||||||||
Totals | $ | 30 | $ | 6 | $ | 24 | $ | (9) |
Total (1) | Level 2 | Level 3 | Gains/(Losses) | ||||||||||||
(Dollars in millions) | |||||||||||||||
December 31, 2018 | |||||||||||||||
Loans held-for-sale (2) | $ | 5 | $ | 5 | $ | — | $ | (1 | ) | ||||||
Impaired loans held-for-investment (2) | |||||||||||||||
Residential first mortgage loans | 12 | — | 12 | (4 | ) | ||||||||||
Repossessed assets (3) | 7 | 7 | (3 | ) | |||||||||||
Totals | $ | 24 | $ | 5 | $ | 19 | $ | (8 | ) | ||||||
December 31, 2017 | |||||||||||||||
Loans held-for-sale (2) | $ | 6 | $ | 6 | $ | — | $ | (1 | ) | ||||||
Impaired loans held-for-investment (2) | |||||||||||||||
Residential first mortgage loans | 21 | — | 21 | (10 | ) | ||||||||||
Repossessed assets (3) | 8 | — | 8 | (4 | ) | ||||||||||
Totals | $ | 35 | $ | 6 | $ | 29 | $ | (15 | ) |
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | (Dollars in millions) | |||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | ||||||||||||||||||||||||||
Commercial loans | Commercial loans | $ | 57 | Fair value of collateral | Market price | N/A | (2) | ||||||||||||||||||||
Impaired loans held-for-investment | Impaired loans held-for-investment | ||||||||||||||||||||||||||
Residential first mortgage loans | $ | 12 | Fair value of collateral | Loss severity discount | 25% - 30% (28.3%) | (1) | Residential first mortgage loans | $ | 24 | Fair value of collateral | Loss severity discount | 0% - 100% (12.8%) | (1) | ||||||||||||||
Repossessed assets | $ | 7 | Fair value of collateral | Loss severity discount | 0% - 100% (25.8%) | (1) | Repossessed assets | $ | 8 | Fair value of collateral | Loss severity discount | 0% - 96.3% (24.5%) | (1) | ||||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||
December 31, 2019 | December 31, 2019 | ||||||||||||||||||||||||||
Impaired loans held-for-investment | Impaired loans held-for-investment | ||||||||||||||||||||||||||
Residential first mortgage loans | $ | 21 | Fair value of collateral | Loss severity discount | 25% - 30% (27.9%) | (1) | Residential first mortgage loans | $ | 14 | Fair value of collateral | Loss severity discount | 25% - 30% (25.9%) | (1) | ||||||||||||||
Repossessed assets | $ | 8 | Fair value of collateral | Loss severity discount | 0% - 100% (70.9%) | (1) | Repossessed assets | $ | 10 | Fair value of collateral | Loss severity discount | 0% - 100% (17.1%) | (1) |
December 31, 2020 | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
Carrying Value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(Dollars in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 623 | $ | 623 | $ | 623 | $ | 0 | $ | 0 | |||||||
Investment securities available-for-sale | 1,944 | 1,944 | 0 | 1,944 | 0 | ||||||||||||
Investment securities held-to-maturity | 377 | 393 | 0 | 393 | 0 | ||||||||||||
Loans held-for-sale | 7,098 | 7,098 | 0 | 7,098 | 0 | ||||||||||||
Loans held-for-investment | 16,227 | 16,188 | 0 | 11 | 16,177 | ||||||||||||
Loans with government guarantees | 2,516 | 2,498 | 0 | 2,498 | 0 | ||||||||||||
Mortgage servicing rights | 329 | 329 | 0 | 0 | 329 | ||||||||||||
Federal Home Loan Bank stock | 377 | 377 | 0 | 377 | 0 | ||||||||||||
Bank owned life insurance | 356 | 358 | 0 | 358 | 0 | ||||||||||||
Repossessed assets | 8 | 8 | 0 | 0 | 8 | ||||||||||||
Other assets, foreclosure claims | 17 | 17 | 0 | 17 | 0 | ||||||||||||
Derivative financial instruments | 281 | 281 | 0 | 73 | 208 | ||||||||||||
Liabilities | |||||||||||||||||
Retail deposits | |||||||||||||||||
Demand deposits and savings accounts | $ | (8,616) | $ | (7,864) | $ | 0 | $ | (7,864) | $ | 0 | |||||||
Certificates of deposit | (1,355) | (1,365) | 0 | (1,365) | 0 | ||||||||||||
Wholesale deposits | (1,031) | (1,047) | 0 | (1,047) | 0 | ||||||||||||
Government deposits | (1,765) | (1,706) | 0 | (1,706) | 0 | ||||||||||||
Custodial deposits | (7,206) | (7,133) | 0 | (7,133) | 0 | ||||||||||||
Federal Home Loan Bank advances | (5,100) | (5,124) | 0 | (5,124) | 0 | ||||||||||||
Long-term debt | (641) | (596) | 0 | (596) | 0 | ||||||||||||
DOJ litigation settlement | (35) | (35) | 0 | 0 | (35) | ||||||||||||
Derivative financial instruments | (102) | (102) | 0 | (102) | 0 |
December 31, 2018 | |||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||
Carrying Value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 408 | $ | 408 | $ | 408 | $ | — | $ | — | |||||||||
Investment securities available-for-sale | 2,142 | 2,142 | — | 2,142 | — | ||||||||||||||
Investment securities held-to-maturity | 703 | 681 | — | 681 | — | ||||||||||||||
Loans held-for-sale | 3,869 | 3,870 | — | 3,870 | — | ||||||||||||||
Loans held-for-investment | 9,088 | 8,966 | — | 8 | 8,958 | ||||||||||||||
Loans with government guarantees | 392 | 374 | — | 374 | — | ||||||||||||||
Mortgage servicing rights | 290 | 290 | — | — | 290 | ||||||||||||||
Federal Home Loan Bank stock | 303 | 303 | — | 303 | — | ||||||||||||||
Bank owned life insurance | 340 | 340 | — | 340 | — | ||||||||||||||
Repossessed assets | 7 | 7 | — | — | 7 | ||||||||||||||
Other assets, foreclosure claims | 50 | 50 | — | 50 | — | ||||||||||||||
Derivative financial instruments, assets | 47 | 47 | — | 27 | 20 | ||||||||||||||
Liabilities | |||||||||||||||||||
Retail deposits | |||||||||||||||||||
Demand deposits and savings accounts | $ | (6,467 | ) | $ | (5,475 | ) | $ | — | $ | (5,475 | ) | $ | — | ||||||
Certificates of deposit | (2,387 | ) | (2,379 | ) | — | (2,379 | ) | — | |||||||||||
Wholesale deposits | (583 | ) | (585 | ) | — | (585 | ) | — | |||||||||||
Government deposits | (1,202 | ) | (1,145 | ) | — | (1,145 | ) | — | |||||||||||
Custodial deposits | (1,741 | ) | (1,664 | ) | — | (1,664 | ) | — | |||||||||||
Federal Home Loan Bank advances | (3,394 | ) | (3,383 | ) | — | (3,383 | ) | — | |||||||||||
Long-term debt | (495 | ) | (463 | ) | — | (463 | ) | — | |||||||||||
DOJ litigation settlement | (60 | ) | (60 | ) | — | — | (60 | ) | |||||||||||
Contingent consideration | (6 | ) | (6 | ) | — | — | (6 | ) | |||||||||||
Derivative financial instruments, liabilities | (39 | ) | (39 | ) | — | (39 | ) | — |
December 31, 2019 | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
Carrying Value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(Dollars in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 426 | $ | 426 | $ | 426 | $ | 0 | $ | 0 | |||||||
Investment securities available-for-sale | 2,116 | 2,116 | 0 | 2,116 | 0 | ||||||||||||
Investment securities held-to-maturity | 598 | 599 | 0 | 599 | 0 | ||||||||||||
Loans held-for-sale | 5,258 | 5,258 | 0 | 5,258 | 0 | ||||||||||||
Loans held-for-investment | 12,129 | 12,031 | 0 | 10 | 12,021 | ||||||||||||
Loans with government guarantees | 736 | 707 | 0 | 707 | 0 | ||||||||||||
Mortgage servicing rights | 291 | 291 | 0 | 0 | 291 | ||||||||||||
Federal Home Loan Bank stock | 303 | 303 | 0 | 303 | 0 | ||||||||||||
Bank owned life insurance | 349 | 349 | 0 | 349 | 0 | ||||||||||||
Repossessed assets | 10 | 10 | 0 | 0 | 10 | ||||||||||||
Other assets, foreclosure claims | 45 | 45 | 0 | 45 | 0 | ||||||||||||
Derivative financial instruments, assets | 62 | 88 | 0 | 54 | 34 | ||||||||||||
Liabilities | |||||||||||||||||
Retail deposits | |||||||||||||||||
Demand deposits and savings accounts | $ | (6,811) | $ | (6,050) | $ | 0 | $ | (6,050) | $ | 0 | |||||||
Certificates of deposit | (2,353) | (2,368) | 0 | (2,368) | 0 | ||||||||||||
Wholesale deposits | (633) | (640) | 0 | (640) | 0 | ||||||||||||
Government deposits | (1,213) | (1,156) | 0 | (1,156) | 0 | ||||||||||||
Custodial deposits | (4,136) | (4,066) | 0 | (4,066) | 0 | ||||||||||||
Federal Home Loan Bank advances | (4,815) | (4,816) | 0 | (4,816) | 0 | ||||||||||||
Long-term debt | (496) | (462) | 0 | (462) | 0 | ||||||||||||
DOJ Liability | (35) | (35) | 0 | 0 | (35) | ||||||||||||
Contingent consideration | (10) | (10) | 0 | 0 | (10) | ||||||||||||
Derivative financial instruments, liabilities | (18) | (44) | 0 | (43) | (1) |
December 31, 2017 | |||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||
Carrying Value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 204 | $ | 204 | $ | 204 | $ | — | $ | — | |||||||||
Investment securities available-for-sale | 1,853 | 1,853 | — | 1,853 | — | ||||||||||||||
Investment securities held-to-maturity | 939 | 924 | — | 924 | — | ||||||||||||||
Loans held-for-sale | 4,321 | 4,322 | — | 4,322 | — | ||||||||||||||
Loans held-for-investment | 7,713 | 7,667 | — | 8 | 7,659 | ||||||||||||||
Loans with government guarantees | 271 | 261 | — | 261 | — | ||||||||||||||
Mortgage servicing rights | 291 | 291 | — | — | 291 | ||||||||||||||
Federal Home Loan Bank stock | 303 | 303 | — | 303 | — | ||||||||||||||
Bank owned life insurance | 330 | 330 | — | 330 | — | ||||||||||||||
Repossessed assets | 8 | 8 | — | — | 8 | ||||||||||||||
Other assets, foreclosure claims | 84 | 84 | — | 84 | — | ||||||||||||||
Derivative financial instruments, assets | 39 | 39 | — | 15 | 24 | ||||||||||||||
Liabilities | |||||||||||||||||||
Retail deposits | |||||||||||||||||||
Demand deposits and savings accounts | $ | (5,003 | ) | $ | (4,557 | ) | $ | — | $ | (4,557 | ) | $ | — | ||||||
Certificates of deposit | (1,494 | ) | (1,498 | ) | — | (1,498 | ) | — | |||||||||||
Wholesale deposits | (43 | ) | (43 | ) | — | (43 | ) | — | |||||||||||
Government deposits | (1,073 | ) | (1,048 | ) | — | (1,048 | ) | — | |||||||||||
Custodial deposits | (1,321 | ) | (1,311 | ) | — | (1,311 | ) | — | |||||||||||
Federal Home Loan Bank advances | (5,665 | ) | (5,662 | ) | — | (5,662 | ) | — | |||||||||||
Long-term debt | (494 | ) | (417 | ) | — | (417 | ) | — | |||||||||||
DOJ litigation settlement | (60 | ) | (60 | ) | — | — | (60 | ) | |||||||||||
Contingent consideration | (25 | ) | (25 | ) | — | — | (25 | ) | |||||||||||
Derivative financial instruments, liabilities | (11 | ) | (11 | ) | — | (11 | ) | — |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Loans held-for-sale | |||||||||||||||||
Net gain on loan sales | $ | 1,204 | $ | 348 | $ | (29) | |||||||||||
Loans held-for-investment | |||||||||||||||||
Other noninterest income | 0 | 1 | 0 | ||||||||||||||
Liabilities | |||||||||||||||||
DOJ Liability | |||||||||||||||||
Other noninterest income | 0 | 25 | 0 |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(Dollars in millions) | |||||||||||
Assets | |||||||||||
Loans held-for-sale | |||||||||||
Net gain on loan sales | $ | (29 | ) | $ | 283 | $ | 269 | ||||
Loans held-for-investment | |||||||||||
Other noninterest income | — | 1 | 1 | ||||||||
Liabilities | |||||||||||
DOJ litigation settlement | |||||||||||
Other noninterest income | — | — | 24 |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
Unpaid Principal Balance | Fair Value | Fair Value Over / (Under) Unpaid Principal Balance | Unpaid Principal Balance | Fair Value | Fair Value Over / (Under) Unpaid Principal Balance | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Nonaccrual loans | |||||||||||||||||||||||
Loans held-for-sale | $ | 9 | $ | 7 | $ | (2) | $ | 3 | $ | 3 | $ | 0 | |||||||||||
Loans held-for-investment | 9 | 8 | (1) | 5 | 4 | (1) | |||||||||||||||||
Total nonaccrual loans | 18 | 15 | (3) | 8 | 7 | (1) | |||||||||||||||||
Other performing loans | |||||||||||||||||||||||
Loans held-for-sale | 6,704 | 7,002 | 298 | 5,057 | 5,216 | 159 | |||||||||||||||||
Loans held-for-investment | 5 | 4 | (1) | 8 | 8 | 0 | |||||||||||||||||
Total other performing loans | 6,709 | 7,006 | 297 | 5,065 | 5,224 | 159 | |||||||||||||||||
Total loans | |||||||||||||||||||||||
Loans held-for-sale | 6,713 | 7,009 | 296 | 5,060 | 5,219 | 159 | |||||||||||||||||
Loans held-for-investment | 14 | 12 | (2) | 13 | 12 | (1) | |||||||||||||||||
Total loans | $ | 6,727 | $ | 7,021 | $ | 294 | $ | 5,073 | $ | 5,231 | $ | 158 | |||||||||||
Liabilities | |||||||||||||||||||||||
DOJ Liability (1) | $ | (118) | $ | (35) | $ | 83 | $ | (118) | $ | (35) | $ | 83 |
December 31, 2018 | December 31, 2017 | ||||||||||||||||||||||
Unpaid Principal Balance | Fair Value | Fair Value Over / (Under) Unpaid Principal Balance | Unpaid Principal Balance | Fair Value | Fair Value Over / (Under) Unpaid Principal Balance | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Nonaccrual loans | |||||||||||||||||||||||
Loans held-for-sale | $ | 6 | $ | 6 | $ | — | $ | 6 | $ | 5 | $ | (1 | ) | ||||||||||
Loans held-for-investment | 4 | 3 | (1 | ) | 5 | 4 | (1 | ) | |||||||||||||||
Total nonaccrual loans | 10 | 9 | (1 | ) | 11 | 9 | (2 | ) | |||||||||||||||
Other performing loans | |||||||||||||||||||||||
Loans held-for-sale | 3,601 | 3,726 | 125 | 4,167 | 4,295 | 128 | |||||||||||||||||
Loans held-for-investment | 8 | 7 | (1 | ) | 10 | 8 | (2 | ) | |||||||||||||||
Total other performing loans | 3,609 | 3,733 | 124 | 4,177 | 4,303 | 126 | |||||||||||||||||
Total loans | |||||||||||||||||||||||
Loans held-for-sale | 3,607 | 3,732 | 125 | 4,173 | 4,300 | 127 | |||||||||||||||||
Loans held-for-investment | 12 | 10 | (2 | ) | 15 | 12 | (3 | ) | |||||||||||||||
Total loans | $ | 3,619 | $ | 3,742 | $ | 123 | $ | 4,188 | $ | 4,312 | $ | 124 | |||||||||||
Liabilities | |||||||||||||||||||||||
Litigation settlement (1) | $ | (118 | ) | $ | (60 | ) | $ | 58 | $ | (118 | ) | $ | (60 | ) | $ | 58 |
Year Ended December 31, 2020 | |||||||||||||||||
Community Banking | Mortgage Originations | Mortgage Servicing | Other (1) | Total | |||||||||||||
(Dollars in millions) | |||||||||||||||||
Summary of Operations | |||||||||||||||||
Net interest income | $ | 570 | $ | 191 | $ | 18 | $ | (94) | $ | 685 | |||||||
Provision (benefit) for credit losses | 3 | (11) | 0 | 157 | 149 | ||||||||||||
Net interest income after provision (benefit) for credit losses | 567 | 202 | 18 | (251) | 536 | ||||||||||||
Net gain on loan sales | 2 | 969 | 0 | 0 | 971 | ||||||||||||
Loan fees and charges | 1 | 98 | 66 | 0 | 165 | ||||||||||||
Net return on mortgage servicing rights | 0 | 10 | 0 | 0 | 10 | ||||||||||||
Loan administration (expense) income | (3) | (35) | 151 | (29) | 84 | ||||||||||||
Other noninterest income | 61 | 8 | 0 | 26 | 95 | ||||||||||||
Total noninterest income | 61 | 1,050 | 217 | (3) | 1,325 | ||||||||||||
Compensation and benefits | 108 | 161 | 46 | 151 | 466 | ||||||||||||
Commissions | 2 | 230 | 0 | 0 | 232 | ||||||||||||
Loan processing expense | 5 | 55 | 36 | 2 | 98 | ||||||||||||
Other noninterest expense | 271 | 136 | 79 | (125) | 361 | ||||||||||||
Total noninterest expense | 386 | 582 | 161 | 28 | 1,157 | ||||||||||||
Income before indirect overhead allocations and income taxes | 242 | 670 | 74 | (282) | 704 | ||||||||||||
Indirect overhead allocation (expense) income | (40) | (60) | (19) | 119 | 0 | ||||||||||||
Provision (benefit) for income taxes | 42 | 128 | 12 | (16) | 166 | ||||||||||||
Net income (loss) | $ | 160 | $ | 482 | $ | 43 | $ | (147) | $ | 538 | |||||||
Intersegment (expense) revenue | $ | (96) | $ | (48) | $ | 39 | $ | 105 | $ | — | |||||||
Average balances | |||||||||||||||||
Loans held-for-sale | $ | 1 | $ | 5,541 | $ | 0 | $ | 0 | $ | 5,542 | |||||||
Loans with government guarantees | $ | 0 | $ | 1,571 | $ | 0 | $ | 0 | $ | 1,571 | |||||||
Loans held-for-investment (2) | $ | 11,376 | $ | 2,591 | $ | 0 | $ | 30 | $ | 13,997 | |||||||
Total assets | $ | 11,760 | $ | 10,735 | $ | 85 | $ | 4,328 | $ | 26,908 | |||||||
Deposits | $ | 10,996 | $ | 0 | $ | 6,712 | $ | 836 | $ | 18,544 |
Year Ended December 31, 2018 | |||||||||||||||||||
Community Banking | Mortgage Originations | Mortgage Servicing | Other (1) | Total | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Summary of Operations | |||||||||||||||||||
Net interest income | $ | 314 | $ | 128 | $ | 7 | $ | 48 | $ | 497 | |||||||||
Net gain (loss) on loan sales | (12 | ) | 212 | — | — | 200 | |||||||||||||
Other noninterest income | 40 | 101 | 94 | 4 | 239 | ||||||||||||||
Total net interest income and noninterest income | 342 | 441 | 101 | 52 | 936 | ||||||||||||||
(Provision) benefit for loan losses | (2 | ) | (2 | ) | — | 12 | 8 | ||||||||||||
Compensation and benefits | (70 | ) | (105 | ) | (19 | ) | (124 | ) | (318 | ) | |||||||||
Other noninterest expense and directly allocated overhead | (110 | ) | (161 | ) | (70 | ) | (53 | ) | (394 | ) | |||||||||
Total noninterest expense | (180 | ) | (266 | ) | (89 | ) | (177 | ) | (712 | ) | |||||||||
Income (loss) before overhead allocations and income taxes | 160 | 173 | 12 | (113 | ) | 232 | |||||||||||||
Overhead allocation | (39 | ) | (68 | ) | (20 | ) | 127 | — | |||||||||||
(Provision) benefit for income taxes | (25 | ) | (22 | ) | 2 | — | (45 | ) | |||||||||||
Net income (loss) | $ | 96 | $ | 83 | $ | (6 | ) | $ | 14 | $ | 187 | ||||||||
Intersegment (expense) revenue | $ | 1 | $ | 10 | $ | 19 | $ | (30 | ) | $ | — | ||||||||
Average balances | |||||||||||||||||||
Loans held-for-sale | $ | 24 | $ | 4,172 | $ | — | $ | — | $ | 4,196 | |||||||||
Loans with government guarantees | — | 303 | — | — | 303 | ||||||||||||||
Loans held-for-investment (2) | 8,417 | 9 | — | 29 | 8,455 | ||||||||||||||
Total assets | 8,615 | 5,406 | 34 | 3,925 | 17,980 | ||||||||||||||
Deposits | 8,892 | — | 1,883 | — | 10,775 |
Year Ended December 31, 2019 | |||||||||||||||||
Community Banking | Mortgage Originations | Mortgage Servicing | Other (1) | Total | |||||||||||||
(Dollars in millions) | |||||||||||||||||
Summary of Operations | |||||||||||||||||
Net interest income | $ | 410 | $ | 145 | $ | 16 | $ | (9) | $ | 562 | |||||||
Provision (benefit) for credit losses | 20 | 2 | 0 | (4) | 18 | ||||||||||||
Net interest income after provision (benefit) for credit losses | 390 | 143 | 16 | (5) | 544 | ||||||||||||
Net (loss) gain on loan sales | (14) | 349 | 0 | 0 | 335 | ||||||||||||
Loan fees and charges | 1 | 67 | 32 | 0 | 100 | ||||||||||||
Net return on mortgage servicing rights | 0 | 6 | 0 | 0 | 6 | ||||||||||||
Loan administration (expense) income | (3) | (24) | 124 | (67) | 30 | ||||||||||||
Other noninterest income | 62 | 12 | 0 | 65 | 139 | ||||||||||||
Total noninterest income | 46 | 410 | 156 | (2) | 610 | ||||||||||||
Compensation and benefits | 103 | 111 | 28 | 135 | 377 | ||||||||||||
Commissions | 2 | 109 | 0 | 0 | 111 | ||||||||||||
Loan processing expense | 6 | 36 | 36 | 2 | 80 | ||||||||||||
Other noninterest expense | 165 | 90 | 59 | 6 | 320 | ||||||||||||
Total noninterest expense | 276 | 346 | 123 | 143 | 888 | ||||||||||||
Income before indirect overhead allocations and income taxes | 160 | 207 | 49 | (150) | 266 | ||||||||||||
Indirect overhead allocation | (41) | (42) | (18) | 101 | 0 | ||||||||||||
Provision (benefit) for income taxes | 24 | 35 | 6 | (17) | 48 | ||||||||||||
Net income (loss) | $ | 95 | $ | 130 | $ | 25 | $ | (32) | $ | 218 | |||||||
Intersegment (expense) revenue | $ | (3) | $ | 13 | $ | 26 | $ | (36) | $ | — | |||||||
Average balances | |||||||||||||||||
Loans held-for-sale | $ | 0 | $ | 3,952 | $ | 0 | $ | 0 | $ | 3,952 | |||||||
Loans with government guarantees | $ | 0 | $ | 553 | $ | 0 | $ | 0 | $ | 553 | |||||||
Loans held-for-investment (2) | $ | 7,876 | $ | 3,027 | $ | 0 | $ | 29 | $ | 10,932 | |||||||
Total assets | $ | 8,319 | $ | 8,467 | $ | 47 | $ | 3,841 | $ | 20,674 | |||||||
Deposits | $ | 10,301 | $ | 0 | $ | 3,851 | $ | 556 | $ | 14,708 |
Year Ended December 31, 2017 | |||||||||||||||||||
Community Banking | Mortgage Originations | Mortgage Servicing | Other (1) | Total | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Summary of Operations | |||||||||||||||||||
Net interest income | $ | 238 | $ | 129 | $ | 11 | $ | 12 | $ | 390 | |||||||||
Net gain (loss) on loan sales | (10 | ) | 278 | — | — | 268 | |||||||||||||
Other noninterest income | 31 | 92 | 66 | 13 | 202 | ||||||||||||||
Total net interest income and noninterest income | 259 | 499 | 77 | 25 | 860 | ||||||||||||||
(Provision) benefit for loan losses | (4 | ) | (4 | ) | — | 2 | (6 | ) | |||||||||||
Compensation and benefits | (62 | ) | (100 | ) | (16 | ) | (121 | ) | (299 | ) | |||||||||
Other noninterest expense and directly allocated overhead | (92 | ) | (163 | ) | (61 | ) | (28 | ) | (344 | ) | |||||||||
Total noninterest expense | (154 | ) | (263 | ) | (77 | ) | (149 | ) | (643 | ) | |||||||||
Income (loss) before overhead allocations and income taxes | 101 | 232 | — | (122 | ) | 211 | |||||||||||||
Overhead allocation | (41 | ) | (63 | ) | (23 | ) | 127 | — | |||||||||||
(Provision) benefit for income taxes | (21 | ) | (59 | ) | 8 | (76 | ) | (148 | ) | ||||||||||
Net income (loss) | $ | 39 | $ | 110 | $ | (15 | ) | $ | (71 | ) | $ | 63 | |||||||
Intersegment (expense) revenue | $ | (6 | ) | $ | 4 | $ | 19 | $ | (17 | ) | $ | — | |||||||
Average balances | |||||||||||||||||||
Loans held-for-sale | $ | 16 | $ | 4,130 | $ | — | $ | — | $ | 4,146 | |||||||||
Loans with government guarantees | — | 290 | — | — | 290 | ||||||||||||||
Loans held-for-investment (2) | 6,475 | 7 | — | 29 | 6,511 | ||||||||||||||
Total assets | 6,544 | 5,414 | 36 | 3,852 | 15,846 | ||||||||||||||
Deposits | 7,454 | — | 1,453 | — | 8,907 |
Year Ended December 31, 2016 | |||||||||||||||||||
Community Banking | Mortgage Originations | Mortgage Servicing | Other (1) | Total | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Summary of Operations | |||||||||||||||||||
Net interest income | $ | 206 | $ | 90 | $ | 21 | $ | 6 | $ | 323 | |||||||||
Net gain on loan sales | 6 | 310 | — | — | 316 | ||||||||||||||
Other noninterest income | 28 | 43 | 60 | 40 | 171 | ||||||||||||||
Total net interest income and noninterest income | 240 | 443 | 81 | 46 | 810 | ||||||||||||||
(Provision) benefit for loan losses | 10 | (2 | ) | — | — | 8 | |||||||||||||
Compensation and benefits | (56 | ) | (81 | ) | (15 | ) | (117 | ) | (269 | ) | |||||||||
Other noninterest expense and directly allocated overhead | (89 | ) | (123 | ) | (63 | ) | (16 | ) | (291 | ) | |||||||||
Total noninterest expense | (145 | ) | (204 | ) | (78 | ) | (133 | ) | (560 | ) | |||||||||
Income (loss) before overhead allocations and income taxes | 105 | 237 | 3 | (87 | ) | 258 | |||||||||||||
Overhead allocation | (35 | ) | (54 | ) | (23 | ) | 112 | — | |||||||||||
(Provision) benefit for income taxes | (24 | ) | (64 | ) | 7 | (6 | ) | (87 | ) | ||||||||||
Net income (loss) | $ | 46 | $ | 119 | $ | (13 | ) | $ | 19 | $ | 171 | ||||||||
Intersegment (expense) revenue | $ | (3 | ) | $ | (1 | ) | $ | 23 | $ | (19 | ) | $ | — | ||||||
Average balances | |||||||||||||||||||
Loans held-for-sale | $ | 66 | $ | 3,068 | $ | — | $ | — | $ | 3,134 | |||||||||
Loans with government guarantees | — | 435 | — | — | 435 | ||||||||||||||
Loans held-for-investment (2) | 5,809 | 6 | — | — | 5,815 | ||||||||||||||
Total assets | 5,906 | 4,435 | 28 | 3,538 | 13,907 | ||||||||||||||
Deposits | 7,151 | — | 1,611 | — | 8,762 |
Year Ended December 31, 2018 | |||||||||||||||||
Community Banking | Mortgage Originations | Mortgage Servicing | Other (1) | Total | |||||||||||||
(Dollars in millions) | |||||||||||||||||
Summary of Operations | |||||||||||||||||
Net interest income | $ | 272 | $ | 170 | $ | 7 | $ | 48 | $ | 497 | |||||||
Provision (benefit) for credit losses | 2 | 2 | 0 | (12) | (8) | ||||||||||||
Net interest income after provision for credit losses | 270 | 168 | 7 | 60 | 505 | ||||||||||||
Net (loss) gain on loan sales | (1) | 201 | 0 | 0 | 200 | ||||||||||||
Loan fees and charges | 0 | 62 | 25 | 0 | 87 | ||||||||||||
Net return on mortgage servicing rights | 0 | 36 | 0 | 0 | 36 | ||||||||||||
Loan administration (expense) income | (2) | (15) | 69 | (29) | 23 | ||||||||||||
Other noninterest income | 45 | 15 | 0 | 33 | 93 | ||||||||||||
Total noninterest income | 42 | 299 | 94 | 4 | 439 | ||||||||||||
Compensation and benefits | 70 | 105 | 19 | 124 | 318 | ||||||||||||
Commissions | 2 | 78 | 0 | 0 | 80 | ||||||||||||
Loan processing expense | 4 | 26 | 26 | 3 | 59 | ||||||||||||
Other noninterest expense | 101 | 66 | 44 | 44 | 255 | ||||||||||||
Total noninterest expense | 177 | 275 | 89 | 171 | 712 | ||||||||||||
Income before indirect overhead allocations and income taxes | 135 | 192 | 12 | (107) | 232 | ||||||||||||
Indirect overhead allocation | (39) | (68) | (20) | 127 | 0 | ||||||||||||
Provision (benefit) for income taxes | 20 | 27 | (2) | 0 | 45 | ||||||||||||
Net income (loss) | $ | 76 | $ | 97 | $ | (6) | $ | 20 | $ | 187 | |||||||
Intersegment revenue (expense) | $ | 10 | $ | 1 | $ | 19 | $ | (30) | $ | — | |||||||
Average balances | |||||||||||||||||
Loans held-for-sale | $ | 0 | $ | 4,196 | $ | 0 | $ | 0 | $ | 4,196 | |||||||
Loans with government guarantees | $ | 0 | $ | 303 | $ | 0 | $ | 0 | $ | 303 | |||||||
Loans held-for-investment (2) | $ | 5,576 | $ | 2,814 | $ | 0 | $ | 29 | $ | 8,419 | |||||||
Total assets | $ | 5,760 | $ | 8,253 | $ | 34 | $ | 3,933 | $ | 17,980 | |||||||
Deposits | $ | 8,580 | $ | 0 | $ | 1,883 | $ | 312 | $ | 10,775 |
December 31, | |||||||
2018 | 2017 | ||||||
(Dollars in millions) | |||||||
Assets | |||||||
Cash and cash equivalents | $ | 201 | $ | 196 | |||
Investment in subsidiaries (1) | 1,836 | 1,676 | |||||
Other assets | 52 | 44 | |||||
Total assets | $ | 2,089 | $ | 1,916 | |||
Liabilities and Stockholders’ Equity | |||||||
Liabilities | |||||||
Long term debt | $ | 495 | $ | 494 | |||
Other liabilities | 24 | 23 | |||||
Total liabilities | 519 | 517 | |||||
Stockholders’ Equity | |||||||
Common stock | 1 | 1 | |||||
Additional paid in capital | 1,522 | 1,512 | |||||
Accumulated other comprehensive loss | (47 | ) | (17 | ) | |||
Retained earnings/(accumulated deficit) | 94 | (97 | ) | ||||
Total stockholders’ equity | 1,570 | 1,399 | |||||
Total liabilities and stockholders’ equity | $ | 2,089 | $ | 1,916 |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(Dollars in millions) | |||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 304 | $ | 233 | |||||||
Investment in subsidiaries (1) | 2,551 | 2,031 | |||||||||
Other assets | 17 | 47 | |||||||||
Total assets | $ | 2,872 | $ | 2,311 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Liabilities | |||||||||||
Long-term debt | $ | 641 | $ | 496 | |||||||
Other liabilities | 30 | 27 | |||||||||
Total liabilities | 671 | 523 | |||||||||
Stockholders’ Equity | |||||||||||
Common stock | 1 | 1 | |||||||||
Additional paid in capital | 1,346 | 1,483 | |||||||||
Accumulated other comprehensive income | 47 | 1 | |||||||||
Retained earnings | 807 | 303 | |||||||||
Total stockholders’ equity | 2,201 | 1,788 | |||||||||
Total liabilities and stockholders’ equity | $ | 2,872 | $ | 2,311 |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(Dollars in millions) | |||||||||||
Income | |||||||||||
Interest | $ | 1 | $ | — | $ | — | |||||
Total | 1 | — | — | ||||||||
Expenses | |||||||||||
Interest | $ | 27 | $ | 25 | $ | 16 | |||||
General and administrative | 7 | 9 | 9 | ||||||||
Total | 34 | 34 | 25 | ||||||||
Loss before undistributed income of subsidiaries | (33 | ) | (34 | ) | (25 | ) | |||||
Equity in undistributed income of subsidiaries | 212 | 110 | 188 | ||||||||
Income before income taxes | 179 | 76 | 163 | ||||||||
Provision (benefit) for income taxes | (8 | ) | 13 | (8 | ) | ||||||
Net income | 187 | 63 | 171 | ||||||||
Other comprehensive loss (1) | (31 | ) | (9 | ) | (9 | ) | |||||
Comprehensive income | $ | 156 | $ | 54 | $ | 162 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Income | |||||||||||||||||
Interest | $ | 2 | $ | 4 | $ | 1 | |||||||||||
Cash dividends received from subsidiaries | 82 | 100 | 0 | ||||||||||||||
Total | 84 | 104 | 1 | ||||||||||||||
Expenses | |||||||||||||||||
Interest | 25 | 28 | 27 | ||||||||||||||
General and administrative | 14 | 6 | 7 | ||||||||||||||
Total | 39 | 34 | 34 | ||||||||||||||
Net income (loss) before undistributed income of subsidiaries | 45 | 70 | (33) | ||||||||||||||
Equity in undistributed income of subsidiaries | 484 | 142 | 212 | ||||||||||||||
Net income before income taxes | 529 | 212 | 179 | ||||||||||||||
Benefit for income taxes | (9) | (6) | (8) | ||||||||||||||
Net income | 538 | 218 | 187 | ||||||||||||||
Other comprehensive income (loss) (1) | 46 | 48 | (31) | ||||||||||||||
Comprehensive income | $ | 584 | $ | 266 | $ | 156 |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Net income | $ | 538 | $ | 218 | $ | 187 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||
Equity in undistributed income of subsidiaries | (566) | (241) | (177) | ||||||||||||||
Dividends received from subsidiaries | 82 | 104 | 0 | ||||||||||||||
Other | 34 | 10 | (5) | ||||||||||||||
Net cash provided by operating activities | 88 | 91 | 5 | ||||||||||||||
Investing Activities | |||||||||||||||||
Net cash provided by investing activities | 0 | 0 | 0 | ||||||||||||||
Financing Activities | |||||||||||||||||
Stock buyback | (150) | (50) | 0 | ||||||||||||||
Repayment of long-term debt | (4) | 0 | 0 | ||||||||||||||
Proceeds from issuance of long-term debt | 150 | 0 | 0 | ||||||||||||||
Debt issuance costs | (2) | 0 | 0 | ||||||||||||||
Dividends declared and paid | (11) | (9) | 0 | ||||||||||||||
Net cash used in financing activities | (17) | (59) | 0 | ||||||||||||||
Net increase in cash and cash equivalents | 71 | 32 | 5 | ||||||||||||||
Cash and cash equivalents, beginning of year | 233 | 201 | 196 | ||||||||||||||
Cash and cash equivalents, end of year | $ | 304 | $ | 233 | $ | 201 |
For the Years Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(Dollars in millions) | |||||||||||
Net income | $ | 187 | $ | 63 | $ | 171 | |||||
Adjustments to reconcile net loss to net cash provided by operating activities | |||||||||||
Equity in (income) loss of subsidiaries | (177 | ) | 47 | 12 | |||||||
Stock-based compensation | 10 | 5 | 10 | ||||||||
Change in other assets | 8 | 18 | (8 | ) | |||||||
Change in other liabilities | 2 | (2 | ) | (22 | ) | ||||||
Change in fair value and other non-cash changes | (25 | ) | (5 | ) | (4 | ) | |||||
Net cash used in operating activities | 5 | 126 | 159 | ||||||||
Investing Activities | |||||||||||
Net cash provided by (used in) investment activities | — | — | — | ||||||||
Financing Activities | |||||||||||
Proceeds from the issuance of senior notes | — | — | 245 | ||||||||
Redemption of preferred stock | — | — | (267 | ) | |||||||
Dividends paid on preferred stock | — | — | (104 | ) | |||||||
Net cash used in financing activities | — | — | (126 | ) | |||||||
Net increase in cash and cash equivalents | 5 | 126 | 33 | ||||||||
Cash and cash equivalents, beginning of year | 196 | 70 | 37 | ||||||||
Cash and cash equivalents, end of year | $ | 201 | $ | 196 | $ | 70 |
2020 | |||||||||||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||||||||||
Interest income | $ | 212 | $ | 206 | $ | 201 | $ | 201 | |||||||||||||||
Interest expense | 23 | 26 | 33 | 53 | |||||||||||||||||||
Net interest income | 189 | 180 | 168 | 148 | |||||||||||||||||||
Provision for credit losses | 2 | 32 | 102 | 14 | |||||||||||||||||||
Net interest income after provision for credit losses | 187 | 148 | 66 | 134 | |||||||||||||||||||
Net gain on loan sales | 232 | 346 | 303 | 90 | |||||||||||||||||||
Loan fees and charges | 53 | 45 | 41 | 26 | |||||||||||||||||||
Net return (loss) on mortgage servicing rights | 0 | 12 | (8) | 6 | |||||||||||||||||||
Loan administration income | 25 | 26 | 21 | 12 | |||||||||||||||||||
Deposit fees and charges | 8 | 8 | 7 | 9 | |||||||||||||||||||
Other noninterest income | 19 | 15 | 14 | 14 | |||||||||||||||||||
Noninterest expense | 319 | 305 | 296 | 235 | |||||||||||||||||||
Income before income tax | 205 | 295 | 148 | 56 | |||||||||||||||||||
Provision for income taxes | 51 | 73 | 32 | 10 | |||||||||||||||||||
Net income from continuing operations | $ | 154 | $ | 222 | $ | 116 | $ | 46 | |||||||||||||||
Basic income per share | $ | 2.86 | $ | 3.90 | $ | 2.04 | $ | 0.80 | |||||||||||||||
Diluted income per share | $ | 2.83 | $ | 3.88 | $ | 2.03 | $ | 0.80 |
2018 | |||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||
Interest income | $ | 181 | $ | 183 | $ | 167 | $ | 152 | |||||||
Interest expense | 29 | 59 | 52 | 46 | |||||||||||
Net interest income | 152 | 124 | 115 | 106 | |||||||||||
Provision (benefit) for loan losses | (5 | ) | (2 | ) | (1 | ) | — | ||||||||
Net interest income after provision for loan losses | 157 | 126 | 116 | 106 | |||||||||||
Net gain on loan sales | 34 | 43 | 63 | 60 | |||||||||||
Loan fees and charges | 20 | 23 | 24 | 20 | |||||||||||
Deposit fees and charges | 6 | 5 | 5 | 5 | |||||||||||
Loan administration income | 8 | 5 | 5 | 5 | |||||||||||
Net return on the mortgage servicing rights | 10 | 13 | 9 | 4 | |||||||||||
Other noninterest income | 20 | 18 | 17 | 17 | |||||||||||
Noninterest expense | 189 | 173 | 177 | 173 | |||||||||||
Income before income tax | 66 | 60 | 62 | 44 | |||||||||||
Provision for income taxes | 12 | 12 | 12 | 9 | |||||||||||
Net income from continuing operations | $ | 54 | $ | 48 | $ | 50 | $ | 35 | |||||||
Basic income per share | $ | 0.94 | $ | 0.84 | $ | 0.86 | $ | 0.61 | |||||||
Diluted income per share | $ | 0.93 | $ | 0.83 | $ | 0.85 | $ | 0.60 |
2019 | |||||||||||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||||||||||
Interest income | $ | 213 | $ | 203 | $ | 198 | $ | 180 | |||||||||||||||
Interest expense | 61 | 57 | 60 | 54 | |||||||||||||||||||
Net interest income | 152 | 146 | 138 | 126 | |||||||||||||||||||
Provision for credit losses | 0 | 1 | 17 | 0 | |||||||||||||||||||
Net interest income after provision for credit losses | 152 | 145 | 121 | 126 | |||||||||||||||||||
Net gain on loan sales | 101 | 110 | 75 | 49 | |||||||||||||||||||
Loan fees and charges | 30 | 29 | 24 | 17 | |||||||||||||||||||
Net (loss) return on the mortgage servicing rights | (3) | (2) | 5 | 6 | |||||||||||||||||||
Loan administration income | 8 | 5 | 6 | 11 | |||||||||||||||||||
Deposit fees and charges | 10 | 10 | 10 | 8 | |||||||||||||||||||
Other noninterest income | 16 | 19 | 48 | 18 | |||||||||||||||||||
Noninterest expense | 245 | 238 | 214 | 191 | |||||||||||||||||||
Income before income tax | 69 | 78 | 75 | 44 | |||||||||||||||||||
Provision for income taxes | 11 | 15 | 14 | 8 | |||||||||||||||||||
Net income from continuing operations | $ | 58 | $ | 63 | $ | 61 | $ | 36 | |||||||||||||||
Basic income per share | $ | 1.01 | $ | 1.12 | $ | 1.08 | $ | 0.64 | |||||||||||||||
Diluted income per share | $ | 1.00 | $ | 1.11 | $ | 1.06 | $ | 0.63 |
2017 | |||||||||||||||
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||
Interest income | $ | 148 | $ | 140 | $ | 129 | $ | 110 | |||||||
Interest expense | 41 | 37 | 32 | 27 | |||||||||||
Net interest income | 107 | 103 | 97 | 83 | |||||||||||
Provision (benefit) for loan losses | 2 | 2 | (1 | ) | 3 | ||||||||||
Net interest income after provision for loan losses | 105 | 101 | 98 | 80 | |||||||||||
Net gain on loan sales | 79 | 75 | 66 | 48 | |||||||||||
Loan fees and charges | 24 | 23 | 20 | 15 | |||||||||||
Deposit fees and charges | 4 | 5 | 5 | 4 | |||||||||||
Loan administration income | 5 | 5 | 6 | 5 | |||||||||||
Net return (loss) on the mortgage servicing rights | (4 | ) | 6 | 6 | 14 | ||||||||||
Other noninterest income | 16 | 16 | 13 | 14 | |||||||||||
Noninterest expense | 178 | 171 | 154 | 140 | |||||||||||
Income before income tax | 51 | 60 | 60 | 40 | |||||||||||
Provision for income taxes | 96 | 20 | 19 | 13 | |||||||||||
Net income from continuing operations | $ | (45 | ) | $ | 40 | $ | 41 | $ | 27 | ||||||
Basic income per share | $ | (0.79 | ) | $ | 0.71 | $ | 0.72 | $ | 0.47 | ||||||
Diluted income per share | $ | (0.79 | ) | $ | 0.70 | $ | 0.71 | $ | 0.46 |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES |
ITEM 9A. | CONTROLS AND PROCEDURES |
ITEM 9B. | OTHER INFORMATION |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS OF THE REGISTRANT AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
Plan Category | Number of Securities to Be Issued Upon Exercise | Weighted Average Exercise Price (1) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans | ||||||||
Equity compensation plans approved by security holders - Restricted Stock Units (2) | 974,186 | $ | 30.88 | 1,276,470 | |||||||
Equity compensation plans not approved by security holders | — | — | — | ||||||||
Total | 974,186 | $ | 30.88 | 1,276,470 |
Plan Category | Number of Securities to Be Issued Upon Exercise | Weighted Average Exercise Price (1) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans | |||||||
Equity compensation plans approved by security holders - Restricted Stock Units (2) | 1,620,568 | $ | — | 1,481,288 | ||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||
Total | 1,620,568 | $ | — | 1,481,288 |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES |
ITEM 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES |
10.4*+ | ||||||||
Description | ||||||||
10.10*+ | ||||||||
23 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101 | Financial statements from Annual Report on Form 10-K of the Company for the year ended December 31, |
* | Incorporated herein by reference | ||||
+ | Constitutes a management contract or compensation plan or arrangement |
FLAGSTAR BANCORP, INC. | ||||||||||||||
By: | /s/ Alessandro P. DiNello | |||||||||||||
Alessandro P. DiNello | ||||||||||||||
President and Chief Executive Officer (Principal Executive Officer) | ||||||||||||||
By: | ||||||||||||||
/s/ James K. Ciroli | ||||||||||||||
James K. Ciroli | ||||||||||||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
SIGNATURE | TITLE | |||||||||||||
/S/ ALESSANDRO DINELLO | President and Chief Executive Officer (Principal Executive Officer) | |||||||||||||
By: | Alessandro DiNello | |||||||||||||
/S | ||||||||||||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||||||||||||||
By: | James K. Ciroli | |||||||||||||
/S/ BRYAN L. MARX | Executive Vice President and Chief Accounting Officer (Principal Accounting Officer) | |||||||||||||
Bryan L. Marx | ||||||||||||||
John D. Lewis | Chairman | |||||||||||||
Jay J. Hansen | Director | |||||||||||||
Toan Huynh | Director | |||||||||||||
Lori Jordan | Director | |||||||||||||
David J. Matlin | Director | |||||||||||||
Bruce E. Nyberg |
Director | ||||||||||||||
/S/ JAMES A. OVENDEN | ||||||||||||||
James A. Ovenden | Director | |||||||||||||
/S/ PETER SCHOELS | ||||||||||||||
Peter Schoels | Director | |||||||||||||
/S/ DAVID L. TREADWELL | ||||||||||||||
By: | David L. Treadwell | Director | ||||||||||||
/S/ JENNIFER WHIP | ||||||||||||||
By: | Jennifer Whip | Director |