Flagstar Bancorp (FBC), the holding company for Flagstar Bank, has disclosed a 62.03 percent plunge in profit for the quarter ended Jun. 30, 2014. The bank earned $25.51 million or $0.33 a share in the second quarter compared with $67.20 million or $1.10 a share, a year ago. Analysts on average had predicted net income of $0.21 a share.
Revenue during the second-quarter plummeted 38.25 percent to $164.91 million from $267.06 million in the last year period.
Net interest income for the quarter rose 32.55 percent over the prior year period to $62.42 million.
Non-interest income for the quarter fell 53.41 percent over the last year period to $102.48 million.
Flagstar Bancorp has made provision of $6.15 million for loan losses during the quarter, which was lower by 80.52 percent from $31.56 million in the same period last year.
Sandro DiNello, the company's president and chief executive officer said, ''We continue to focus on controlling our noninterest expense in the current mortgage environment and are managing expenses in order to be profitable in any origination environment. While we are pleased with these results, this quarter brought two changes that impacted pretax income by approximately $20 million, albeit favorably. Overall, we are encouraged by our progress, especially as it relates to our growth in net interest income and net gain on sale income, as well as our continued expense discipline.''
Total assets stood at $9933.11 million as on Jun. 30, 2014, down 22 percent compared with $12735.02 million on Jun. 30, 2013.
While total liabilities stood at $8547.44 million as on Jun. 30, 2014, down 25.55 percent from $11481.28 million on Jun. 30, 2013.
Net loans stood at $4053.29 million as on Jun. 30, 2014, down 4.59 percent compared with $4248.15 million on Jun. 30, 2013.
Deposits stood at $6643.91 million as on Jun. 30, 2014, down 11.06 percent compared with $7470.07 million on Jun. 30, 2013.
Equity capital of Flagstar Bancorp increased 10.52 percent to $1385.67 million as on Jun. 30, 2014 compared with $1253.74 million on Jun. 30, 2013.
Shares of Flagstar Bancorp gained 5 cents or 0.29 percent to close at $17.40 on Tuesday.
