Flagstar's Non-Performing Assets Top $1.1 Billion
Mortgage loan production at Flagstar Bank is up in Q209 from a year earlier, but non-performing mortgages and loan charge-offs continue to soar. The bank's loan production -- primarily agency residential first mortgages -- fell to $9.3bn in Q209 from $9.5bn in the previous quarter, but is up 13% from $8.2bn in the year-ago quarter. Flagstar Bancorp (FBC), holding company for Flagstar Bank, posted $76.6m in Q209 net loss, compared with $67.4m in the previous quarter. Flagstar took $117.7m of net loan charge-offs in the quarter, up from $68.2m in Q109 and nearly ten times the $11.2m of charge-offs taken in the year-ago quarter. Meanwhile, the provision for loan losses fell to $125.7m in Q209, from $158.2m in the previous quarter. Residential first mortgages accounted for $588.2m of the bank's total $1.1bn in non-performing assets at the end of Q209. Non-performing mortgages rose more than 150% from $232.6m in the year-ago period while total non-performing assets grew by 120% from $500m. Write to Diana Golobay. Disclaimer: The author held no relevant investments when this story was published.