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.
Flagstar cuts loss to $22.6 million in 3Q, mortgage originations up
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