Flagstar cuts loss to $22.6 million in 3Q, mortgage originations up
Flagstar Bancorp. (FBC), the largest publicly held savings bank in the Midwest, reported $22.6 million in losses, or 15 cents per diluted share, cutting losses by 92% and increasing mortgage originations by 15% from a year ago. The company reported $298.2 million in losses in the third quarter of 2009 and a $97 million loss in the previous quarter. The bank said improvements came from growing revenue, decreased credit costs and strengthening asset quality. Flagstar originated $7.6 billion in mortgage loans in the third quarter, up 15% from last year and 38% from the previous quarter. In the last nine months, the bank produced $17.4 billion in mortgages, with 91% of it coming from its correspondent and broker channels. The bank reported $1.1 billion in nonperforming assets, which contain REO and seriously delinquent loans, down 8% from last year and the previous quarter. Flagstar also announced it will commence public offerings of $380 million in shares of common stock. Proceeds from the offering will be used to further restructure the balance sheet and dispose of the nonperforming assets. Write to Jon Prior.