Exhibit 99.1
NEWS RELEASE
For more information, contact:
Paul D. Borja
Executive Vice President / CFO
(248) 312-2000
For more information, contact:
Paul D. Borja
Executive Vice President / CFO
(248) 312-2000
FOR IMMEDIATE RELEASE
FLAGSTAR REPORTS 2008 SECOND QUARTER RESULTS
TROY, Mich. (July 17, 2008) — Flagstar Bancorp, Inc. (NYSE:FBC), the holding company for Flagstar Bank FSB, today reported a 2008 second quarter net earnings of $15.7 million, or $0.22 per share (diluted). On a linked-quarter basis, Flagstar had a net loss in the first quarter 2008 of ($10.6) million, or $(0.17) per share (diluted). On a prior year basis, second quarter 2007 net earnings were $15.1 million, or $0.25 per share (diluted). For the six months ended June 30, 2008, Flagstar’s net earnings were $5.1 million, or $0.08 per share (diluted), as compared to $22.9 million, or $0.37 per share (diluted) for the same period 2007.
Return on equity and return on average assets for the second quarter 2008 were 8.39% and 0.41%, respectively, as compared to (5.93%) and (0.27%) for the first quarter 2008 and 7.69% and 0.38% for the second quarter 2007. Return on average equity and average assets for the six months ended June 30, 2008 were 1.43% and 0.07%, respectively, as compared to 5.79% and 0.29% for the six months ended June 30, 2007.
Total assets at June 30, 2008 were $14.6 billion as compared to $15.9 billion at March 31, 2008 and $16.2 billion at June 30, 2007.
Net earnings for Second Quarter 2008
Net earnings for the second quarter 2008 reflected an increase in net interest income before provision for loan losses to $61.3 million as compared to $54.8 million for the first quarter 2008, an increase in loan administration income to $37.4 million as compared to a loss of ($17.0) million for the first quarter 2008, and a decline in the impairment of residuals to $4.1 million as compared to $9.5 million for the first quarter 2008. The benefit of these changes was offset by an increase in the provision for loan losses to $43.8 million from $34.3 million for the first quarter 2008, a decline in gain on loan sales to $43.8 million as compared to $63.4 million for the first quarter 2008, and a markdown in real estate owned of $10.0 million as compared to $3.7 million for the first quarter 2008.
Net earnings for the Six Months ended June 30, 2008
Net earnings for the six months ended June 30, 2008 reflected an increase in net interest income before provision for loan losses to $116.2 million as compared to $103.9 million for the same period in 2007, an increase in loan administration income to $20.3 million as compared to $4.2 million for the same period in 2007, and an increase in gain on loan sales to $107.3 million as compared to $53.3 million for the same 2007 period The benefit of these increases was offset by an increase in the provision for loan losses to $78.1 million as compared to $19.7 million for the same period in 2007 and an impairment of residuals of $13.6 million as compared to no such impairment for the same 2007 period.
Liquidity
Flagstar’s primary sources of funds are deposits, loan repayments and sales, advances from the Federal Home Loan Bank of Indianapolis (FHLB), cash generated from operations, customer escrow accounts and
security repurchase agreements. Retail deposits were $5.0 billion at June 30, 2008, as compared to $5.2 billion at March 31, 2008 and $4.9 billion at June 30, 2007. At June 30, 2008, Flagstar had a $7.5 billion line of credit with the FHLB, as to which $1.8 billion remained available, and a $0.9 billion undrawn line of credit at the Federal Reserve discount window.
Capital
At June 30, 2008, Flagstar Bank remained “well-capitalized” for regulatory purposes, with capital ratios of 6.70% for core capital and 11.65% for total risk-based capital. During the quarter ended June 30, 2008, Flagstar completed its $100 million equity offering and invested $72 million of the net proceeds into Flagstar Bank as capital.
Net Interest Margin
Flagstar Bank increased its net interest margin to 1.89% for the 2008 second quarter as compared to 1.66% for the first quarter 2008 and 1.43% for the second quarter 2007. For the six months ended June 30, 2008, its net interest margin was 1.77% as compared to 1.42% for the six months ended June 30, 2007.
Retail Banking Operations
Flagstar Bank had 170 retail banking branches at June 30, 2008 as compared to 167 branches at March 31, 2008 and 156 branches at June 30, 2007.
Mortgage Banking Operations
Loan production for second quarter 2008 increased 2.5% to $8.2 billion, including $8.1 billion of residential loans, as compared to loan originations of $8.0 billion, including $7.9 billion in residential loans, in first quarter 2008. Loan production increased 10.8%, as compared to loan originations of $7.4 billion, including $7.2 billion of residential loans, in second quarter of 2007.
For the six months ended June 30, 2008 loan production increased 22.7% to $16.2 billion, including $15.9 billion of residential loans, as compared to $13.2 billion, including $12.7 billion of residential loans, for the six months ended June 30, 2007.
The gain on loan sales and securitization margin was 54 basis points for the quarter ended June 30, 2008, as compared to 89 basis points for the first quarter 2008 and 49 basis points for the second quarter 2007. The decline in the second quarter 2008 was due principally to a $22.5 million mark down in the value of loans transferred from the available-for-sale portfolio to the held-for-investment portfolio. For the six months ended June 30, 2008, the gain on sale margin increased to 70 basis points as compared to 48 basis points for the same period in 2007.
At June 30, 2008, the unpaid principal balances of loans associated with Flagstar’s mortgage servicing rights portfolio totaled $45.8 billion and had a weighted average service fee of 34.2 basis points. This was an increase from $38.4 billion at March 31, 2008 with a weighted average servicing fee of 35.0 basis points and $21.5 billion at June 30, 2007 with an average weighted servicing fee of 36.9 basis points.
Asset Quality
Non-performing assets, which include non-performing loans, real estate owned and repurchased assets, increased to $462.4 million at June 30, 2008, from $372.8 million at March 31, 2008 and $190.7 million at June 30, 2007. Total non-performing loans net of any federally insured assets, which are loans 90 days or more past due and matured loans, increased to $332.5 million (3.66% of loans held for investment) at June 30, 2008 as compared to $253.4 million (2.96% of loans held for investment) at March 31, 2008 and $99.3 million (1.30% of loans held for investment) at June 30, 2007.
Of the non-performing assets, non-performing residential first mortgage loans increased to $232.6 million, net of any federally insured assets, at June 30, 2008, as compared to $172.6 million at March 31, 2008 and $74.2 million at June 30, 2007. Single-family residential first mortgage loans held for investment at June 30, 2008 had an average original FICO credit score of 719 and an average original loan-to-value ratio of 73.8%. Non-performing commercial real estate mortgages increased to $80.7 million at June 30, 2008 as compared to $72.7 million at March 31, 2008 and $21.2 million at June 30, 2007. Non-performing commercial real estate loans are individually evaluated for impairment and may not require a specific loan loss reserve depending upon the sufficiency of collateral or cash flows.
Real estate owned net of any federally insured assets, increased to $118.6 million at June 30, 2008 from $109.7 million at March 31, 2008 and $78.9 million at June 30, 2007. Repurchased assets were $11.3 million at June 30, 2008 as compared to $9.6 million at March 31, 2008 and $12.5 million at June 30, 2007.
Net charge-offs of loans were $11.2 million for the second quarter 2008 as compared to $16.9 million for the first quarter 2008 and $6.6 million for the second quarter 2007. The provision for loan losses was $43.8 million for the second quarter 2008 as compared to $34.3 million for the first quarter 2008 and $11.5 million for the second quarter 2007. As a result, the allowance for loan losses increased to $154.0 million (1.69% of loans held for investment) at June 30, 2008 as compared to $121.4 million (1.42% of loans held for investment) at March 31, 2008 and $53.4 million (0.70% of loans held for investment) at June 30, 2007.
As Previously Announced
The Company’s quarterly earnings conference call will be held on Friday, July 18, 2008 from 11 a.m. until 12 noon (Eastern).
Questions for discussion at the conference call may only be submitted in advance by e-mail toinvestors@flagstar.com.
The conference call and accompanying slide presentation will be webcast live on the Investor Relations section of the Company’s Web site,www.flagstar.com, with replays available at that site for at least 10 days.
To listen by telephone, please call at least 10 minutes prior to the start of the conference call at (719) 325-4776 or toll free at (877) 718-5107, passcode: 4748348.
Flagstar Bancorp, with $14.6 billion in total assets, is the largest publicly held savings bank headquartered in the Midwest. At June 30, 2008, Flagstar operated 170 banking centers in Michigan, Indiana and Georgia and 121 home loan centers in 26 states. Flagstar Bank originates loans nationwide and is one of the leading originators of residential mortgage loans.
The information contained in this release is not intended as a solicitation to buy Flagstar Bancorp, Inc. stock and is provided for general information. This release contains certain statements that may constitute “forward-looking statements” within the meaning of federal securities laws. These forward-looking statements include statements about the Company’s beliefs, plans, objectives, goals, expectations, anticipations, estimates, and intentions, that are subject to significant risks and uncertainties, and are subject to change based upon various factors (some of which may be beyond the Company’s control). The words “may,” “could,” “should,” “would,” “believe,” and similar expressions are intended to identify forward-looking statements.
Flagstar Bancorp, Inc.
Summary of Selected Consolidated Financial Data
Summary of Selected Consolidated Financial Data
(Dollars in thousands, except per share data)
(Unaudited)
| For the Three Months Ended | ||||||||||||
| Summary of Consolidated | June 30, | March 31, | June 30, | |||||||||
| Statements of Operations | 2008 | 2008 | 2007 | |||||||||
| Interest income | $ | 200,564 | $ | 210,853 | $ | 222,464 | ||||||
| Interest expense | (139,165 | ) | (156,055 | ) | (172,547 | ) | ||||||
| Net interest income | 61,399 | 54,798 | 49,917 | |||||||||
| Provision for loan losses | (43,833 | ) | (34,262 | ) | (11,452 | ) | ||||||
| Net interest income after provision | 17,566 | 20,536 | 38,465 | |||||||||
| Non-interest income | ||||||||||||
| Loan fees and charges, net | 617 | 884 | 837 | |||||||||
| Deposit fees and charges | 6,815 | 6,031 | 5,710 | |||||||||
| Loan administration | 37,370 | (17,046 | ) | 3,149 | ||||||||
| Net gain on loan sales and securitizations | 43,826 | 63,425 | 28,144 | |||||||||
| Net gain on investments available for sale | 4,869 | — | ||||||||||
| (Loss) gain on MSR sales, net | (834 | ) | 287 | 5,610 | ||||||||
| Unrealized loss on trading securities-residuals | (4,104 | ) | (9,482 | ) | — | |||||||
| Unrealized gain (loss) on interest rate swaps | 984 | (1,611 | ) | — | ||||||||
| Other income | 10,734 | 10,186 | 13,994 | |||||||||
| Total non-interest income | 100,277 | 52,674 | 57,444 | |||||||||
| Non-interest expenses | ||||||||||||
| Compensation and benefits | (54,411 | ) | (56,626 | ) | (42,847 | ) | ||||||
| Commissions | (30,788 | ) | (29,316 | ) | (19,517 | ) | ||||||
| Occupancy and equipment | (20,471 | ) | (19,853 | ) | (17,038 | ) | ||||||
| General and administrative | (14,879 | ) | (8,827 | ) | (11,178 | ) | ||||||
| Other | (6,670 | ) | (6,850 | ) | (5,366 | ) | ||||||
| Total non-interest expense | (127,219 | ) | (121,472 | ) | (95,946 | ) | ||||||
| Capitalized direct cost of loan closing | 33,483 | 32,304 | 23,712 | |||||||||
| Total non-interest expense after capitalized direct cost of loan closing | (93,736 | ) | (89,168 | ) | (72,234 | ) | ||||||
| Earnings (loss) before federal income tax | 24,107 | (15,958 | ) | 23,675 | ||||||||
| Provision (benefit) for federal income taxes | (8,361 | ) | (5,359 | ) | (8,544 | ) | ||||||
| Net earnings (loss) | $ | 15,746 | $ | (10,599 | ) | $ | 15,131 | |||||
| Basic earnings (loss) per share | $ | 0.24 | $ | (0.18 | ) | $ | 0.25 | |||||
| Diluted earnings (loss) per share | $ | 0.22 | $ | (0.17 | ) | $ | 0.25 | |||||
| Dividends paid per common share | N/A | N/A | $ | 0.10 | ||||||||
| Dividend payout ratio | N/A | N/A | 39.7 | % | ||||||||
| Net interest spread — Consolidated | 1.77 | % | 1.48 | % | 1.27 | % | ||||||
| Net interest margin — Consolidated | 1.80 | % | 1.55 | % | 1.35 | % | ||||||
| Interest rate spread — Bank only | 1.82 | % | 1.61 | % | 1.30 | % | ||||||
| Net interest margin — Bank only | 1.89 | % | 1.66 | % | 1.43 | % | ||||||
| Return on average assets | 0.41 | % | (0.27 | )% | 0.38 | % | ||||||
| Return on average equity | 8.39 | % | (5.93 | )% | 7.69 | % | ||||||
| Efficiency ratio | 79.54 | % | 82.97 | % | 67.28 | % | ||||||
| Average interest earning assets | $ | 13,677,016 | $ | 14,183,297 | $ | 14,799,436 | ||||||
| Average interest paying liabilities | $ | 13,606,212 | $ | 14,007,106 | $ | 14,582,350 | ||||||
| Average stockholders’ equity | $ | 750,978 | $ | 715,262 | $ | 786,768 | ||||||
| Equity/assets ratio (average for the period) | 4.91 | % | 4.48 | % | 4.99 | % | ||||||
| Ratio of charge-offs to average loans held for investment | 0.50 | % | 0.80 | % | 0.36 | % | ||||||
Flagstar Bancorp, Inc.
Summary of Selected Consolidated Financial Data
Summary of Selected Consolidated Financial Data
(Dollars in thousands, except per share data)
(Unaudited)
| For the Six Months Ended | ||||||||
| Summary of Consolidated | June 30, | June 30, | ||||||
| Statements of Operations | 2008 | 2007 | ||||||
| Interest income | $ | 411,417 | $ | 443,033 | ||||
| Interest expense | (295,220 | ) | (339,141 | ) | ||||
| Net interest income | 116,197 | 103,892 | ||||||
| Provision for loan losses | (78,096 | ) | (19,745 | ) | ||||
| Net interest income after provision | 38,101 | 84,147 | ||||||
| Non-interest income | ||||||||
| Loan fees and charges, net | 1,501 | 2,644 | ||||||
| Deposit fees and charges | 12,846 | 10,688 | ||||||
| Loan administration | 20,324 | 4,168 | ||||||
| Net gain on loan sales and securitizations | 107,252 | 53,298 | ||||||
| Net gain on investments available for sale | 4,869 | — | ||||||
| (Loss) gain on MSR sales, net | (547 | ) | 5,725 | |||||
| Impairment — securities available for sale | — | 729 | ||||||
| Unrealized loss on trading securities — residential | (13,586 | ) | — | |||||
| Unrealized loss on swaps | (627 | ) | — | |||||
| Other income | 20,920 | 18,494 | ||||||
| Total non-interest income | 152,952 | 95,746 | ||||||
| Non-interest expenses | ||||||||
| Compensation and benefits | (111,037 | ) | (85,496 | ) | ||||
| Commissions | (60,103 | ) | (34,822 | ) | ||||
| Occupancy and equipment | (40,324 | ) | (33,824 | ) | ||||
| General and administrative | (23,707 | ) | (23,366 | ) | ||||
| Other | (13,520 | ) | (8,872 | ) | ||||
| Total non-interest expense | (248,691 | ) | (186,380 | ) | ||||
| Capitalized direct cost of loan closing | 65,786 | 42,340 | ||||||
| Total non-interest expense after capitalized direct cost of loan closing | (182,905 | ) | (144,040 | ) | ||||
| Earnings before federal income tax | 8,148 | 35,853 | ||||||
| Provision for federal income taxes | (3,002 | ) | (12,963 | ) | ||||
| Net earnings | $ | 5,146 | $ | 22,890 | ||||
| Basic earnings per share | $ | 0.08 | $ | 0.37 | ||||
| Diluted earnings per share | $ | 0.08 | $ | 0.37 | ||||
| Dividends paid per common share | N/A | $ | 0.20 | |||||
| Dividend payout ratio | N/A | 53.9 | % | |||||
| Net interest spread — Consolidated | 1.62 | % | 1.21 | % | ||||
| Net interest margin — Consolidated | 1.66 | % | 1.39 | % | ||||
| Interest rate spread — Bank only | 1.67 | % | 1.26 | % | ||||
| Net interest margin — Bank only | 1.77 | % | 1.42 | % | ||||
| Return on average assets | 0.07 | % | 0.29 | % | ||||
| Return on average equity | 1.43 | % | 5.79 | % | ||||
| Efficiency ratio | 67.96 | % | 72.09 | % | ||||
| Average interest earning assets | $ | 13,983,160 | $ | 14,795,867 | ||||
| Average interest paying liabilities | $ | 13,841,065 | $ | 14,642,313 | ||||
| Average stockholders’ equity | $ | 720,714 | $ | 790,410 | ||||
| Equity/assets ratio (average for the period) | 4.66 | % | 4.93 | % | ||||
| Ratio of charge-offs to average loans held for investment | 0.64 | % | 0.33 | % | ||||
Flagstar Bancorp, Inc.
Summary of Selected Consolidated Financial Data
Summary of Selected Consolidated Financial Data
(Dollars in thousands, except per share data)
(Unaudited)
| Summary of the Consolidated | June 30, | March 31, | December 31, | June 30, | ||||||||||||
| Statements of Financial Condition: | 2008 | 2008 | 2007 | 2007 | ||||||||||||
| Total assets | $ | 14,605,993 | $ | 15,923,312 | $ | 15,792,736 | $ | 16,179,478 | ||||||||
| Mortgage backed securities held to maturity | — | — | 1,255,431 | 1,069,350 | ||||||||||||
| Investment securities available for sale | 978,033 | 2,364,007 | 1,308,608 | 973,787 | ||||||||||||
| Loans held for sale | 2,706,372 | 3,137,410 | 3,511,310 | 5,110,768 | ||||||||||||
| Loans held for investment, net | 9,091,263 | 8,452,624 | 8,030,397 | 7,602,073 | ||||||||||||
| Allowance for loan losses | 154,000 | 121,400 | 104,000 | 53,400 | ||||||||||||
| Mortgage servicing rights | 661,819 | 497,875 | 413,986 | 266,545 | ||||||||||||
| Deposits | 7,478,188 | 8,427,804 | 8,236,744 | 7,697,810 | ||||||||||||
| FHLB advances | 5,736,000 | 6,207,000 | 6,301,000 | 5,529,055 | ||||||||||||
| Repurchase agreements | 108,000 | 108,000 | 108,000 | 1,705,418 | ||||||||||||
| Stockholders’ equity | 801,764 | 703,654 | 692,978 | 770,275 | ||||||||||||
Other Financial and Statistical Data: | ||||||||||||||||
| Equity/assets ratio | 5.49 | % | 4.42 | % | 4.39 | % | 4.76 | % | ||||||||
| Core capital ratio | 6.70 | % | 5.64 | % | 5.78 | % | 6.04 | % | ||||||||
| Total risk-based capital ratio | 11.65 | % | 10.47 | % | 10.66 | % | 10.96 | % | ||||||||
| Book value per common share | $ | 11.08 | $ | 11.66 | $ | 11.50 | $ | 12.78 | ||||||||
| Shares outstanding | 72,337 | 60,325 | 60,271 | 60,260 | ||||||||||||
| Average shares outstanding | 66,005 | 60,312 | 61,152 | 62,051 | ||||||||||||
| Average diluted shares outstanding | 71,746 | 60,753 | 61,509 | 62,552 | ||||||||||||
| Loans serviced for others | $ | 45,830,865 | $ | 38,378,056 | $ | 32,487,337 | $ | 21,508,835 | ||||||||
| Weighted average service fee (bps) | 34.2 | 35.0 | 36.0 | 36.9 | ||||||||||||
| Value of mortgage servicing rights | 1.47 | % | 1.30 | % | 1.27 | % | 1.24 | % | ||||||||
| Allowance for loan losses to non performing loans | 46.3 | % | 47.9 | % | 52.8 | % | 53.8 | % | ||||||||
| Allowance for loan losses to loans held for investment | 1.69 | % | 1.42 | % | 1.28 | % | 0.70 | % | ||||||||
| Non performing assets to total assets | 3.17 | % | 2.34 | % | 1.90 | % | 1.18 | % | ||||||||
| Number of bank branches | 170 | 167 | 164 | 156 | ||||||||||||
| Number of loan origination centers | 121 | 138 | 143 | 73 | ||||||||||||
| Number of employees (excluding loan officers & account executives) | 3,389 | 3,170 | 3,083 | 2,689 | ||||||||||||
| Number of loan officers and account executives | 791 | 839 | 877 | 462 | ||||||||||||
Loan Originations
(Dollars in millions)
(unaudited)
| For the Three Months Ended | ||||||||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||||||
| Loan type | 2008 | 2008 | 2007 | |||||||||||||||||||||
| Residential mortgage loans | $ | 8,060 | 98.6 | % | $ | 7,860 | 98.1 | % | $ | 7,162 | 96.5 | % | ||||||||||||
| Consumer loans | 46 | 0.6 | 49 | 0.6 | 110 | 1.5 | ||||||||||||||||||
| Commercial loans | 71 | 0.8 | 101 | 1.3 | 150 | 2.0 | ||||||||||||||||||
| Total loan production | $ | 8,177 | 100.0 | % | $ | 8,010 | 100.0 | % | $ | 7,422 | 100.0 | % | ||||||||||||
| For the Six Months Ended | ||||||||||||||||
| June 30, | June 30, | |||||||||||||||
| Loan type | 2008 | 2007 | ||||||||||||||
| Residential mortgage loans | $ | 15,920 | 98.4 | % | $ | 12,652 | 96.0 | % | ||||||||
| Consumer loans | 95 | 0.6 | 214 | 1.6 | ||||||||||||
| Commercial loans | 172 | 1.0 | 309 | 2.4 | ||||||||||||
| Total loan production | $ | 16,187 | 100.0 | % | $ | 13,175 | 100.0 | % | ||||||||
Gain (Loss) on Loan Sales and Securitizations
(Dollars in millions)
(unaudited)
| For the Three Months Ended | ||||||||||||||||||||||||
| June 30, | March 31, | June 30, | ||||||||||||||||||||||
| 2008 | 2008 | 2007 | ||||||||||||||||||||||
| Description | (000’s) | bps | (000’s) | bps | (000’s) | bps | ||||||||||||||||||
| Gain on loan sales | $ | 107,234 | 132 | $ | 96,936 | 155 | $ | 27,710 | 49 | |||||||||||||||
| Hedging costs | 6,044 | 7 | 9,099 | 13 | 21,018 | 36 | ||||||||||||||||||
| LOCOM adjustments | (22,474 | ) | (28) | (225 | ) | — | (63 | ) | — | |||||||||||||||
| Provision to SMR | (2,813 | ) | (3) | (2,999 | ) | (4) | (2,379 | ) | (4) | |||||||||||||||
| Credit losses | (2,279 | ) | (3) | (4,438 | ) | (6) | (333 | ) | (1) | |||||||||||||||
| Loan level pricing adjustments | (46,027 | ) | (57) | (31,519 | ) | (44) | (16,616 | ) | (29) | |||||||||||||||
| Other transaction costs | (372 | ) | — | (566 | ) | (1) | (1,193 | ) | (2) | |||||||||||||||
| Net gain on loan sales | 39,313 | 48 | 66,288 | 113 | 28,144 | 49 | ||||||||||||||||||
| Net gain (loss) on securitizations | 4,513 | 6 | (2,863 | ) | (24) | — | — | |||||||||||||||||
| Net gain on loan sales and securitizations | $ | 43,826 | 54 | $ | 63,425 | 89 | $ | 28,144 | 49 | |||||||||||||||
| Total loan sales and securitizations | $ | 8,106,544 | $ | 7,160,328 | $ | 5,730,633 | ||||||||||||||||||
| For the Six Months Ended | ||||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2008 | 2007 | |||||||||||||||
| Description | (000’s) | bps | (000’s) | bps | ||||||||||||
| Gain on loan sales | $ | 204,170 | 134 | $ | 67,311 | 61 | ||||||||||
| Hedging costs | 15,143 | 10 | 22,778 | 20 | ||||||||||||
| LOCOM adjustments | (22,699 | ) | (15) | (89 | ) | — | ||||||||||
| Provision to SMR | (5,812 | ) | (4) | (4,542 | ) | (4) | ||||||||||
| Credit losses | (6,717 | ) | (4) | (800 | ) | (1) | ||||||||||
| Loan level pricing adjustments | (77,546 | ) | (51) | (28,581 | ) | (26) | ||||||||||
| Other transaction costs | (938 | ) | (1) | (2,779 | ) | (2) | ||||||||||
| Net gain on loan sales | 105,601 | 69 | 53,298 | 48 | ||||||||||||
| Net gain on securitizations | 1,650 | 1 | — | — | ||||||||||||
| Net gain on loan sales and securitizations | $ | 107,251 | 70 | $ | 53,298 | 48 | ||||||||||
| Total loan sales and securitizations | $ | 15,266,871 | $ | 11,020,249 | ||||||||||||
Loans Held for Investment
(Dollars in thousands)
(unaudited)
| Description | June 30, 2008 | March 31, 2008 | ||||||||||||||
| First mortgage loans | $ | 6,042,770 | 66.5 | % | $ | 6,103,777 | 71.2 | % | ||||||||
| Second mortgage loans | 294,783 | 3.2 | 60,917 | 0.7 | ||||||||||||
| Commercial real estate loans | 1,706,191 | 18.8 | 1,641,686 | 19.1 | ||||||||||||
| Construction loans | 71,345 | 0.8 | 77,035 | 0.9 | ||||||||||||
| Warehouse lending | 423,356 | 4.7 | 347,908 | 4.1 | ||||||||||||
| Consumer loans | 529,034 | 5.8 | 318,694 | 3.7 | ||||||||||||
| Non-real estate commercial | 23,783 | 0.2 | 24,007 | 0.3 | ||||||||||||
| Total loans held for investment | $ | 9,091,262 | 100.0 | % | $ | 8,574,024 | 100.0 | % | ||||||||
| Description | December 31, 2007 | June 30, 2007 | ||||||||||||||
| First mortgage loans | $ | 5,823,952 | 71.6 | % | $ | 5,542,471 | 72.4 | % | ||||||||
| Second mortgage loans | 56,516 | 0.7 | 61,107 | 0.8 | ||||||||||||
| Commercial real estate loans | 1,542,104 | 19.0 | 1,381,552 | 18.0 | ||||||||||||
| Construction loans | 90,401 | 1.1 | 82,301 | 1.1 | ||||||||||||
| Warehouse lending | 316,719 | 3.9 | 267,740 | 3.5 | ||||||||||||
| Consumer loans | 281,631 | 3.4 | 302,047 | 3.9 | ||||||||||||
| Non-real estate commercial | 22,959 | 0.3 | 18,255 | 0.3 | ||||||||||||
| Total loans held for investment | $ | 8,134,282 | 100.0 | % | $ | 7,655,473 | 100.0 | % | ||||||||
Deposit Portfolio
(Dollars in thousands)
(unaudited)
| June 30, 2008 | March 31, 2008 | |||||||||||||||
| Description | Balance | Rate | Balance | Rate | ||||||||||||
| Demand deposits | $ | 455,523 | 0.65 | % | $ | 415,411 | 0.76 | % | ||||||||
| Savings deposits | 441,017 | 2.39 | 329,983 | 2.32 | ||||||||||||
| Money market deposits | 544,390 | 2.47 | 541,374 | 2.57 | ||||||||||||
| Certificates of deposits | 3,597,842 | 4.27 | 3,908,398 | 4.77 | ||||||||||||
| Total retail deposits | 5,038,772 | 3.58 | 5,195,166 | 4.06 | ||||||||||||
| Company controlled custodial deposits | 587,655 | — | 698,344 | — | ||||||||||||
| Municipal deposits / CDARS | 893,901 | 3.01 | 1,508,644 | 3.75 | ||||||||||||
| Wholesale deposits | 957,860 | 4.78 | 1,025,650 | 4.76 | ||||||||||||
| Total deposits | $ | 7,478,188 | 3.39 | % | $ | 8,427,804 | 3.75 | % | ||||||||
| December 31, 2007 | June 30, 2007 | |||||||||||||||
| Description | Balance | Rate | Balance | Rate | ||||||||||||
| Demand deposits | $ | 436,239 | 1.60 | % | $ | 404,837 | 1.58 | % | ||||||||
| Savings deposits | 237,762 | 2.90 | 133,099 | 1.48 | ||||||||||||
| Money market deposits | 531,587 | 3.86 | 611,506 | 4.19 | ||||||||||||
| Certificates of deposits | 3,870,828 | 4.99 | 3,756,718 | 5.00 | ||||||||||||
| Total retail deposits | 5,076,416 | 4.48 | 4,906,160 | 4.52 | ||||||||||||
| Company controlled custodial deposits | 473,384 | — | 369,861 | — | ||||||||||||
| Municipal deposits / CDARS | 1,545,395 | 5.04 | 1,540,177 | 5.35 | ||||||||||||
| Wholesale deposits | 1,141,549 | 4.64 | 881,612 | 3.72 | ||||||||||||
| Total deposits | $ | 8,236,744 | 4.35 | % | $ | 7,697,810 | 4.38 | % | ||||||||
Asset Quality
(Dollars in thousands)
(unaudited)
| June 30, 2008 | March 31, 2008 | |||||||||||||||
| % of | % of | |||||||||||||||
| Days delinquent | Balance | Total | Balance | Total | ||||||||||||
| 30 | $ | 95,310 | 19.1 | % | $ | 81,343 | 21.2 | % | ||||||||
| 60 | 69,930 | 14.0 | 48,823 | 12.7 | ||||||||||||
| 90 + and Matured Delinquent | 332,540 | 66.9 | 253,423 | 66.1 | ||||||||||||
| Total | $ | 497,780 | 100.0 | % | $ | 383,589 | 100.0 | % | ||||||||
| Investment loans | $ | 9,091,262 | $ | 8,574,024 | ||||||||||||
| December 31, 2007 | June 30, 2007 | |||||||||||||||
| % of | % of | |||||||||||||||
| Days delinquent | Balance | Total | Balance | Total | ||||||||||||
| 30 | $ | 59,811 | 18.3 | % | $ | 50,202 | 27.9 | % | ||||||||
| 60 | 70,450 | 21.5 | 30,451 | 16.9 | ||||||||||||
| 90 + and Matured Delinquent | 197,149 | 60.2 | 99,298 | 55.2 | ||||||||||||
| Total | $ | 327,410 | 100.0 | % | $ | 179,951 | 100.0 | % | ||||||||
| Investment loans | $ | 8,134,282 | $ | 7,655,473 | ||||||||||||
| Non-Performing Loans and Assets at | ||||||||||||||||
| June 30, | March 31, | December 31, | June 30, | |||||||||||||
| 2008 | 2008 | 2007 | 2007 | |||||||||||||
| Non-performing loans | $ | 332,540 | $ | 253,423 | $ | 197,149 | $ | 99,298 | ||||||||
| Real estate owned | 118,582 | 109,749 | 95,074 | 78,916 | ||||||||||||
| Repurchased assets/non-performing assets | 11,299 | 9,633 | 8,079 | 12,501 | ||||||||||||
| Non-performing assets | $ | 462,420 | $ | 372,805 | $ | 300,302 | $ | 190,715 | ||||||||
| Non-performing loans as a percentage of investment loans | 3.66 | % | 2.96 | % | 2.42 | % | 1.30 | % | ||||||||
| Non-performing assets as a percentage of total assets | 3.17 | % | 2.34 | % | 1.90 | % | 1.18 | % | ||||||||