Where we say "we," "us," "our," the "Company," "Bancorp" or "Flagstar," we usually mean Flagstar Bancorp, Inc. However, in some cases, a reference to "we," "us," or "our," the "Company," or "Flagstar," will include our wholly-owned subsidiary Flagstar Bank, FSB (the "Bank"). See the Glossary of Abbreviations and Acronyms on page 3 for definitions used throughout this Form 10-K.    

We are a leading savings and loan holding company founded in 1993. Our business is primarily conducted through our principal subsidiary, the Bank, a federally chartered stock savings bank founded in 1987. Based on our assets at December 31, 2017, we are one of the largest banks headquartered in Michigan, providingWe provide commercial small business, and consumer banking services and we are the 5th6th largest bank mortgage originator in the nation.nation and the 6th largest subservicer of mortgage loans nationwide. At December 31, 2017,2020, we had 3,5255,214 full-time equivalent employees inclusive of account executives and loan officers.employees. Our common stock is listed on the NYSE under the symbol "FBC." As of December 31, 2017, we are considered a controlled company for NYSE purposes, because approximately 62.1 percent of our common stock is owned by MP Thrift Investments, L.P., which is managed by MatlinPatterson, a global asset manager."FBC".

We have a unique,    Our relationship-based business model which leverages our full-service bank’sbank's capabilities withand our national mortgage customer baseplatform to create and build enduring commercial relationships. Our banking network emphasizes the delivery of a complete set of banking and mortgage products and services. We distinguish ourselves by crafting specializedfinancial solutions for our customers, local delivery, high quality customer service and competitive product pricing. Our community bank growth model has focused on attracting seasoned bankers with larger bank lending experience who can attract their existing long-term customer relationships to Flagstar.customers. At December 31, 2017,2020, we operated 99158 full service banking branches throughout Michigan's major markets where wethat offer a full set of banking products to consumer, commercial and government customers. Our banking footprint spans Michigan, Indiana, California, Wisconsin, Ohio and contiguous states.

We originate mortgages through a wholesale network of correspondentsbrokers and brokerscorrespondents in all 50 states as well as throughand our own loan officers, which includes our direct lending team, from 89103 retail locations and 3 call centers in 29 states, representing28 states. We are also a leading national servicer of mortgage loans and provide complementary ancillary offerings including MSR lending, servicing advance lending and MSR recapture services.

We face substantial competition in attracting deposits along with generating and makingservicing loans. Our most direct competition for deposits has historically come from other savings banks, commercial banks and credit unions in our local market areas.banking footprint. Money market funds, and full-service securities brokerage firms and financial technology companies also compete with us for these funds and, in recent years, many financial institutions have competed for deposits through the Internet.funds. We compete for deposits by offering competitive interest rates and a broad range of high qualityhigh-quality customized banking services at a large number of convenient locations. competitive rates.

At December 31, 2017,    We conduct business primarily through our corporate structure consisted ofwholly-owned bank subsidiary. In addition, the Bank subsidiary and itshas wholly-owned subsidiaries along with our wholly-owned non-bank subsidiaries through which we conduct other non-material business or which are inactive. The Bank and its wholly ownedwholly-owned subsidiaries comprised 99.7 percentnearly all of our total assets at December 31, 2017.2020. For further information, see Note 1 - Description of Business, Basis of Presentation, and Summary of Significant Accounting Standards, Note 7 - Variable Interest Entities and Note 2422 - Holding Company Only Financial Statements.

    The Bank is a federally chartered savings bank, subject to federal regulation and oversight by the OCC. We are also subject to regulation under state and federal laws. Regulatory reform and enhanced supervisory requirements have had and could continue to have an impact on how we conduct business. As a result, we continually assessexamination by the impact of regulatory changes and implement policies, processes and controls required to comply with new regulations.

    Any change to laws and regulations, whether by the FDIC, OCC, CFPB, SEC, the Federal Reserve and the SEC.or Congress, could have a materially adverse impact on our operations.

The Bank is subject to a number of federal consumer protection laws and regulations. These include, among others, the Truth in Lending Act, the Truth in Savings Act, the Equal Credit Opportunity Act, the Fair Housing Act, the Fair Credit Reporting Act, the ServicemembersService Members Civil Relief Act, the Expedited Funds Availability Act, the Community Reinvestment Act, the Real Estate Settlement Procedures Act, electronic funds transfer laws, redlining laws, predatory lending laws, laws prohibiting unfair, deceptive or abusive acts or practices in connection with the offer, or sale of consumer financial products or services and the GLBA and California Consumer Protection Act regarding customer privacy and data security.

The Bank is subject to supervision by the CFPB, which has responsibility for enforcing federal consumer protectionfinancial laws. The CFPB has broad and unique rulemakingrule-making authority to administer and carry out the provisions of the Dodd-Frank Act with respect to financial institutions that offer covered financial products and services to consumers, including prohibitions against unfair, deceptive, abusive acts or abusive practices in connection with any transaction with a consumer for a consumer financial product or

service, or the offering of a consumer financial product or service including regulations related to the origination and servicing of residential mortgages. The CFPB has finalized significant rules and guidance that impact nearly every aspect of the life cycle of a residential mortgage and continues to revise these rules and propose new rules. The Bank is subject to the CFPB’s supervisory, examination and enforcement authority with respect to consumer protection laws and regulations.authority. As a result, we could incur increased costs, potential litigation or be materially limited or restricted in our business, product offerings or services in the future.

As a result of bank regulator’s    Due to regulatory focus on compliance with consumer compliance,protection laws and regulations, portions of our lending operations which most directly deal with consumers, including mortgage and consumer lending, may pose particular challenges. Further, the CFPB continues to propose new rules and to amend existing rules. While we are not aware of any material compliance issues related to our mortgage and consumer lending practices, the focus of regulators and the changes to regulations may increase our compliance risks.risk. Despite the supervision and oversight we exercise in these areas, failure to comply with these regulations could result in the Bank being liable for damages to individual borrowers or other imposed penalties.

Additionally, the Equal Credit Opportunity Act and the Fair Housing Act prohibit financial institutions from engaging in discriminatory lending practices. The Department of Justice,DOJ, CFPB and other agencies are responsible for enforcing these laws and regulations. Private parties may also have the ability to challenge an institution's performance under fair lending laws in class action litigation. A successful challenge to the Bank's performance under the fair lending laws and regulations could adversely impact the Bank's rating under the Community Reinvestment Act and result in a wide variety of sanctions or penalties or limit certain revenue channels.

The U.S. bank regulatory agencies issued comprehensive guidance on incentive compensation policies intended to ensure that the incentive compensation policies of U.S. banks do not undermine safety and soundness by encouraging excessive risk-taking. The U.S. bank regulatory agencies review, as part of the regular, risk-focused examination process, the incentive compensation arrangements of U.S. banks that are not "large, complex banking organizations." These reviews are tailored to each bank based on the scope and complexity of the bank’s activities and the prevalence of incentive compensation arrangements.

Our executive offices are located at 5151 Corporate Drive, Troy, Michigan 48098, and our telephone number is (248) 312-2000. Our stock is traded on the NYSE under the symbol "FBC."

Our financial condition and results of operations may be adversely affected by various factors, many of which are beyond our control.control, including the current pandemic resulting from COVID-19. In addition to the factors identified elsewhere in this Report, we believe the most significant risk factors affecting our business include thoseare set forth below.

    The below description of risk factors is not exhaustive, and readers should not consider the description of suchexhaustive. Other risk factors are described elsewhere herein as well as in other reports and documents that we file with or furnish to be a complete set of all potential risksthe SEC. Other factors that could affect us.also cause results to differ from our expectations may not be described herein or in any such report or document.

Our business and results of operations are affected by economic and market conditions, political uncertainty and social conditions, factors impacting the level and volatility of short-term and long-term interest rates, inflation, home prices, unemployment and under-employment levels, risks associated with an outbreak of a widespread epidemic or pandemic of disease (or widespread fear thereof), bankruptcies, household income, consumer spending, fluctuations in both debt and equity capital markets and currencies, liquidity of the financial markets, the availability and cost of capital and credit, investor sentiment and confidence in the financial markets, and the sustainability of economic growth. Deterioration of any of these conditions could adversely affect our business segments, the level of credit risk we have assumed, our capital levels, and liquidity, and our results of operations.

    In 2020, approximately 62 percent of our revenue was derived from our Mortgage Origination segment which includes activities related to the origination and sale of residential mortgages. The residential real estate mortgage lending business is sensitive to changes in interest rates. Lower interest rates generally increase the volume of mortgage originations, while higher interest rates generally cause that volume to decrease. Therefore, our mortgage performance is typically correlated to fluctuations in interest rates, primarily the 10-year U.S. Treasury rate. Historically, mortgage origination volume and sales for the Bank and for other financial institutions have risen and fallen in response to these and other factors. An increase in interest rates and/or a decrease in our mortgage production volume could have a materially adverse effect on our operating results. The 10-year U.S. Treasury rate was 0.93 percent at December 31, 2020, and averaged 0.89 percent during 2020, 125 basis points lower than average rates experienced during 2019. The sustained lower rates experienced throughout 2020 positively impacted the mortgage market including our loan origination volume and refinancing activity, which may not persist.

    In addition to being affected by interest rates, the secondary mortgage markets are also subject to investor demand for residential mortgage loans and investor yield requirements for these loans. These conditions may fluctuate or worsen in the future. Adverse market conditions, including increased volatility and reduced market demand, could result in greater risk in retaining mortgage loans pending their sale to investors. A prolonged period of secondary market illiquidity may result in a reduction of our loan mortgage production volume and could have a materially adverse effect on our financial condition and results of operations.

Our mortgage origination business is also subject to the cyclical and seasonal trends of the real estate market. Cyclicality inThe cyclical nature of our industry could lead to periods of strong growth in the mortgage and real estate markets followed by periods of sharp declines and losses in such markets. Seasonal trends have historically reflected the general patterns of residential and commercial real estate sales, which typically peak in the spring and summer seasons. One of the primary influences on our mortgage business is the aggregate demand for mortgage loans, in our market areas, which is affected by prevailing interest rates, housing supply and thedemand, residential construction trends, and overall economic condition of those areas.conditions. If we are unable to respond to the cyclicalitycyclical nature of our industry by appropriately adjusting our operations or relying on the strength of our other product offerings during cyclical downturns, our business, financial condition, and results of operations could be adversely affected.

    We generate mortgage origination volumerevenues primarily from gains on the sale of single-family residential loans pursuant to programs currently offered by Fannie Mae, Freddie Mac, Ginnie Mae and other investors. These entities account for a substantial portion of the secondary market in residential mortgage related assets, and our investment portfolio.

turn, result in a lower volume of mortgagecorresponding loan originations while higher interest rates generally cause that volume to decrease. Historically, mortgage origination volume and sales for the Bank and foror other financial institutions have risen and fallen in response to these and other factors. An increase in interest rates would change these conditions and couldadministrative costs which may have a materialmaterially adverse effect on our operating results. During 2017, average 10 year U.S. Treasury rates,results of operations or could cause us to take other actions that would be materially detrimental.

    We are required to follow specific guidelines or criteria that impact the average life of ourway we originate, underwrite or service loans. Guidelines include credit standards for mortgage loans, our staffing levels and other servicing practices, the servicing and ancillary fees that we may charge, modification standards and procedures, and the amount of non-reimbursable advances.

    We cannot negotiate these terms, which are subject to change at any time, with the Agencies. A significant change in these guidelines, which decreases the fees we charge or requires us to expend additional resources in providing mortgage related securitiesservices, could decrease our revenues or increase our costs, adversely affecting our business, financial condition, and results of operations.

    In addition, changes in the nature or extent of the guarantees provided by Fannie Mae and Freddie Mac or the insurance provided by the FHA could also have broad adverse market implications. The fees that we are required to a lesser extent, our commercial loans. Decreases in interest rates can trigger an increase in unscheduled prepayments of our loanspay to the Agencies for these guarantees have changed significantly over time and mortgage-related securities as borrowers refinance to reduce their own borrowing costs. Conversely,any future increases in interestthese fees would adversely affect our business, financial condition and results of operations.

    In November 2020, the FCA announced that it would continue to publish LIBOR rates may decrease loan refinance activity.

    As of December 31, 2017,2020, we had $291 million on MSRs, $57$329 million in DTAs arising from temporary differencesMSRs and no investmentsa MSR to Common Equity Tier 1 Capital ratio of 16.2 percent. We produced, on average, approximately $67 million of new MSRs per quarter in unconsolidated financial institutions or minority interest. This final rule will maintain2020 and we expect to continue to generate MSRs going forward. Considering the

Our allowance for loan and lease losses,ACL, which reflects our estimate of suchexpected lifetime losses inherent in the HFI loan portfolio and our reserve for unfunded commitments, at December 31, 2017,2020, may not be adequatesufficient to cover actual credit losses. If this allowance is insufficient, future provisions for credit losses could adversely affect our financial condition and results of operations. We attempt to limit the risk that borrowers will fail to repay loans by carefully underwriting our loans,loans; but losses nevertheless occur in the ordinary course of business operations.business. Our ALLLACL is based on historical experience as well as our evaluationestimate of the risks inherentlifetime losses in the loan portfolio at December 31, 2017.2020. We establish an allowance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The determination of an appropriate level of loan loss allowance is a subjective process that requires significant management judgment, including estimatesdetermination of lossthe reasonable and supportable forecast period, forecasting economic conditions and the loss emergence period, estimates and judgments about the collectabilityqualitative assessment of oureach loan portfolio including but not limited to the creditworthiness of our borrowers and the value of real estate or other collateral backing the repayment of loans.portfolio. New information regarding existing loans, identification of additional problem loans, failure of borrowers and guarantors to perform in accordance with the terms of their loans, and other factors, both within and outside of our control, may require an increase in the ALLL.ACL. Moreover, our regulators, as part of their supervisory function, periodically review our ALLL. Our regulators, who may have access to broader industry data than we do,ACL and may recommend or require us towe increase the amount of our ALLL,ACL based onupon their judgment, which may be different from that of our management. Any increaseManagement.

Our residential mortgage loan portfolio is geographically concentrated in certain states, including California Michigan, and Florida,Michigan which comprise approximately 5855 percent in the aggregate of the portfolio. In addition, our commercial loan portfolio has a concentration of Michigan lendingMichigan-lending relationships. Approximately 4840 percent of our CRE loans are collateralized by properties in Michigan, and 2935 percent of our C&I borrowers are located in Michigan. These concentrations have made, and will continue to make, our loan portfolio particularly susceptible to downturns in thethese local economies and the real estate and mortgage markets in these areas. Adverse conditions that are beyond our control may affect these areas, including unemployment, inflation, recession, natural disasters, declining property values, municipal bankruptcies and other factors which could increase default ratesboth the probability and severity of defaults in our loan portfolio, reduce our ability to generate new loans and negatively affect our financial results.

At December 31, 2017,2020, our committed amount of adjustable-rate warehouse lines of credit granted to other mortgage lenders was $2.8$10.5 billion of which $1.1$7.7 billion was outstanding. There may be risks associated with the mortgage lenders that borrow from the Bank, including credit risk, inadequate underwriting, and potential external fraud.fraud against the Bank. At December 31, 2020, our largest borrower had an outstanding balance of $180 million. A default fromby one of our larger warehouse borrowers could result in a large loss.loss relative to our size. Additionally, adverse changes to industry competition, mortgage demand and the interest rate environment may have a negative impact on warehouse lending. Fluctuations in outstanding warehouse lines of credit, which are contingent on residential mortgage production, can impact the Bank’s liquidity and earnings. Failure to mitigate these risks could negatively impact our financial results.

We require substantial liquidity to repay our customers' deposits, fulfill loan demands,demand, meet debtborrowing obligations, as they come due, and fund our operations under both normal operating environments and unforeseen circumstances causingwhich may cause liquidity stress. Our access to liquidity could be impaired by our inability to access the capital markets or unforeseen outflows of deposits. Our access to external sources of financing, including deposits, as well as theand cost of that financing,liquidity is dependent on various factors. A number of factors could make funding more difficult, more expensive or unavailable on any terms. These factors include,including, but not limited to, declining financial resultsresults; balance sheet and losses, material changes to operating margins, financial leverage on an absolute basis or relative to peers, changes within the organization, specific events that impact our financial condition or reputation,leverage; disruptions in the capital markets, specific events that adversely impact the financial services industry,markets; counterparty availability, the corporate and regulatory structure, balance sheet and capital structure, geographic and business diversification,availability; interest rate fluctuations, market share and competitive position,fluctuations; general economic conditionsconditions; and the legal, regulatory, accounting and tax environments governing funding transactions. Many of these factors are beyond our control. A material deterioration in any one or a combination of these factors could result in a downgrade of our credit or servicer standing with counterparties, or a decline in our reputation within the marketplace, and could resultresulting in higher cash outflows requiringwhich could require us to raise capital or obtain additional access to liquidity, having a limited ability to borrow funds, maintain or increase deposits (including custodial deposits for our agency servicing portfolio) or to raise capital on commercially reasonable terms or at all.

by our borrowing facilities, then we may have to limit our growth, reduce the number of loans we are able to originate, or take actions that could have other negative effects on our operations. A prolonged significant reduction in loan originations that occurs as a result could adversely impact our earnings and financial condition.

    

As a holding company with no significant assets other than the capital stock of the Bank and the cash on hand, our ability to make payments for certain services we purchase from the Bank and to service our debt, including interest payments on our senior notes and trust preferred securities dependssecurities; pay dividends; repurchase shares of our common stock; pay for certain services we purchase from the Bank; and cover operating expenses, depend upon available cash on hand and the receipt of dividends from the Bank. The holding company had cash and cash equivalents of $196$305 million at December 31, 2017or2020, or approximately 3.81.4 years of expense,future anticipated cash outflows, dividend payments, share repurchases, and debt service coverage. Operating expenses, which includes compensation and benefits, legal and professional expense and general and administrative expenses. These expenses forinclude costs paid to the holding companyBank, totaled $34$39 million for the year ended December 31, 2017.2020. On January 22, 2021, we repaid our Senior Notes which reduced the holding company's cash and cash equivalents to $42 million as of January 31, 2021. The declaration and payment of dividends by the Bank on all classes of its capital stock isare subject to the discretion of the Bank's boardBoard of directorsDirectors and to applicable regulatory and legal limitations. If the Bank does not, or cannot, make sufficient dividend payments to us, we may not be able to service or repay our debt when it comes due, which could have a materialmaterially adverse effect on our financial condition and results of operations.operations or could cause us to take other actions which could be materially detrimental to our shareholders.

The Dodd-Frank Act required the FDIC to substantially revise its regulations for determining the amount of an institution's deposit insurance premiums. TheConsequently, the FDIC has defined the deposit insurance assessment base for an insured depository institution as average consolidated total assets during the assessment period minus average tangible equity.Tier 1 Capital. Our assessment rate is determined bythrough the use of a scorecard that combines our CAMELS ratings with certain other financial information. Changes in the level and mix of these financial components in the scorecard may result in a higher assessment rate. The FDIC may determine that we present a higher risk to the DIF than other banks due to various factors. These factors include significant risks relating to interest rates, loan portfolio and geographic concentration, concentration of high credit risk loans, increased loan losses, regulatory compliance, (including under existing Supervisory Agreement), existing and future litigation, and other factors. As a result, we could be subject to higher deposit insurance premiums and special assessments in the future that could adversely affect our earnings. The Bank’s deposit insurance premiums

Our businesses are increasingly dependent on our ability to process, record and monitor a large number of complex transactions and data.data efficiently and accurately. If our internal information technology systems fail, we may be unable to conduct business for a period of time, which may impact our financial results if that interruption is sustained. In addition, our reputation with our customers or business partners may suffer, which could have a further, long-term impact on our financial results.

Because we conduct part of our business over the Internetinternet and outsource a significant number of our critical functions to third parties, our operations depend on our third-party service providers to maintain and operate their own technology systems. To the extent these third parties’ systems fail, despite our monitoring and contingency plans, we may be unable to conduct business or provide certain services, and we may face financial and reputational losses as a result.

Cybersecurity related attacks are attempted on an ongoing basis which pose a risk of data breaches relative to the processing of consumer transactions that contain customers’ personally identifiable information.    As a part of conducting our business, we receive, transmit and store a large volume of personally identifiable information and other usersensitive data either on our network, or in the cloud.cloud, or on third party networks and systems. We, and our third-party providers, have been in the past and may in the future be subject to cybersecurity attacks. We, and our third-party providers, are regularly the subject of attempted attacks and the ability of the attackers continues to grow in sophistication. Further, we may not know that an attack occurred until well after the event. Even after discovering an attempt or breach occurred, we may not know the extent of the impact of the attack for some period of time. Such attacks may interrupt our business or compromise the sensitive data of our customers and employees. There can be no assurance that a cybersecurity incident will not have a material impact on our business in the future.

Cybersecurity risks for banking institutions have increased significantly in recent years due to opportunistic threats related to COVID-19, supply chain attacks, foreign actors, new technologies, the reliance on technology to conduct financial transactions and the increased sophistication of organized crime and hackers. A cybersecurity attack, or information security breach, phishing or other social engineering incident could adversely impact our ability to conduct business due to the potential costs for remediation, protection and litigation andas well as reputational damage with customers, business partners and investors.

a third-party provider upon which we rely, fail to comply with applicable privacy policies or federal, state, local or international laws and regulations or experience any compromise of security that results in the unauthorized release of personally identifiable information or other usersensitive data, those events could damage the reputation of our business and discourage potential users from utilizing our products and services. In addition, weinsurance may have to bearnot cover the cost of mitigating identity theft concerns or responding to and mitigating a cybersecurity incident, and we may be subject to fines or legal proceedings by governmental agencies or consumers. Any of these events could adversely affect our business and financial condition.

We    Servicing revenue makes up approximately 12 percent of our total revenue and contributed approximately $7 billion in average custodial deposits during 2020. At December 31, 2020, we had relationships with six owners of MSRs, excluding ourselves, for which we act as subservicer for the mortgage loans they own. Due to the limited number of relationships, discontinuation of existing agreements with those third parties or adverse changes in contractual terms could have a significant negative impact to our mortgage servicing revenue. The terms and conditions in which a master servicer may terminate subservicing contracts are broad and could be exercised at the discretion of the master servicer without requiring cause. Additionally, the master servicer directs the oversight of custodial deposits associated with serviced loans and, to the extent allowable, could choose to transfer the oversight of the Bank's custodial deposits to another depository institution. Further, as servicer or subservicer for mortgage loans owned by third parties, which is approximately 9 percent of our revenue and results in approximately $1.5 billion of our average company controlled deposits. In such capacities for those loans, we have certain contractual obligations, including foreclosing on defaulted mortgage loans or, to the extent applicable, considering alternatives to foreclosure. If we commit a material breach of our obligations as servicer, we may be subject to termination if the breach is not cured within a specified period of time following notice, causing us to lose servicing income.

For certain investors and/or certain transactions, we may be contractually obligated to repurchase a mortgage loan or reimburse the investor for credit or other losses incurred on the loan as a remedy for servicing errors with respect to the loan. If we have increased repurchase obligations because of claims for which we did not satisfy our obligations, or increased loss severity on such repurchases, we may have a significant reduction to noninterest income or an increase to noninterest expense. We may incur significant costs if we are required to, or if we elect to, re-execute or re-file documents or take other action in our capacity as a servicer in connection with pending or completed foreclosures. We may incur litigation costs if the validity of a foreclosure action is challenged by a borrower. If a court were to overturn a foreclosure becauseAny of errorsthese actions may harm our reputation or deficiencies in the foreclosure process, we may have liability to the borrower and/or to any title insurer of the property sold in foreclosure if the required process was not followed. These costsnegatively affect our servicing business and, liabilities may not be legally or otherwise reimbursable to us.

In 2017,2020, approximately 9070 percent of our residential first mortgage volume depended upon the use of third partythird-party mortgage originators, i.e. mortgage brokers and correspondent lenders, who are not our employees. These third parties originate mortgages andor provide services to many different banks and other entities. Accordingly, they may have relationships with, or loyalties to, such banks and other parties that are different from those they have with or to us. Failure to maintain good relations with such third partythird-party mortgage originators could have a negative impact on our market share which would negatively impact our results of operations.

Due to regulatory scrutiny, our third partythird-party mortgage originators could choose or be required to either reduce the scope of their business or exit the mortgage origination business altogether. The TILA-RESPA Integrated Disclosure Rule issued by the CFPB establishes comprehensive mortgage disclosure requirements for lenders and settlement agents in connection with most closed-end consumer credit transactions secured by real property. The rule requires certain disclosures to be provided to consumers in connection with applying for and closing on a mortgage loan. The rule also mandates the use of specific disclosure forms, timing of communicating information to borrowers, and certain record keeping requirements. The ongoing administrative burden and the system requirements associated with complying with these rules or potential changes to these rules could impact our mortgage volume and an increase in costs. In addition, these arrangements with third partythird-party mortgage originators and the fees payable by us to such third parties could be subject to regulatory scrutiny and restrictions in the future.

The Equal Credit Opportunity Act and the Fair Housing Act prohibit discriminatory lending practices by lenders, including financial institutions. These regulations apply to lending operations which deal directly with consumer lending. Mortgage and consumer lending practices raise compliance risks resulting from the detailed and complex nature of mortgage and consumer lending laws and regulations imposed by federal regulatory agencies, andRegulatory Agencies as well as the relatively independent and diverse operating channels in which loans are originated. As we originate loans through various channels, we, and our third partythird-party mortgage originators, are especially impacted by these laws and regulations and are required to implement appropriate policies and procedures to help ensure compliance with fair lending laws and regulations and to avoid lending practices that result in the disparate treatment of, or disparate impact to, borrowers across our various locations under multiple channels. Failure to comply with these laws and regulations, by us, or our third partythird-party mortgage originators, could result in the Bank being liable for damages to individual borrowers or other imposed penalties.

introduction and development of new lines of business and/or new products or services may not be achieved, and price and profitability targets may not prove feasible, which could result in a materially negative effect on our common stock and has significant influence overoperating results. New lines of business and/or new products or services also could subject us including control over decisions that require the approval of stockholders, whetherto additional or not such decisions are in the best interests of other stockholders.

    At any given time, we are involved with a number of risk factors islegal and regulatory examinations as a part of the routine reviews conducted by regulators and other parties, which may involve consumer protection, employment, tort, and numerous other laws and regulations. Proceedings or actions brought against us may result in judgments, settlements, fines, penalties, injunctions, business improvement orders, consent orders, supervisory agreements, restrictions on our business activities, or other results adverse to us, which could materially and negatively affect our business. If such claims and other matters are not exhaustive. Other risk factors are described elsewhere hereinresolved in a manner favorable to us, they may result in significant financial liability and/or adversely affect the market perception of us and our products and services as well as impact customer demand for those products and services. Some of the laws and regulations to which we are subject may provide a private right of action that a consumer or class of consumers may pursue to enforce these laws and regulations. We have been, and may be in the future, subject to stockholder class and derivative actions, which could seek significant damages or other reportsrelief. Any financial liability or reputational damage could have a materially adverse effect on our business, which could have a materially adverse effect on our financial condition and documentsresults of operations. Claims asserted against us can be highly complicated and slow to develop, making the outcome of such proceedings difficult to predict or estimate early in the process. As a participant in the financial services industry, it is likely that we file withwill be exposed to a high level of litigation and regulatory scrutiny relating to our business and operations.

    Although we establish accruals for legal or furnishregulatory proceedings when information related to the SEC. Other factorsloss contingencies represented by those matters indicates both that could also cause resultsa loss is probable and that the amount of loss can be reasonably estimated, we do not have accruals for all legal or regulatory proceedings where we face a risk of loss. Due to differ from our expectationsthe inherent subjectivity of the assessments and unpredictability of the outcome of legal and regulatory proceedings, amounts accrued may not represent the ultimate loss to us from the legal and regulatory proceedings in question. As a result, our ultimate losses may be described hereinsignificantly higher than the amounts accrued for legal loss contingencies.

    We are, and will continue to be, dependent upon our management team and other key personnel. Losing the services of one or more key members of our management team or other factors,key personnel could adversely affect our business, resultsoperations. In addition, COVID-19 increases the risk that certain senior executive officers or a member of operations and/the Board of Directors could become ill, causing them to be incapacitated or financial condition.otherwise unable to perform their duties for an extended absence. Furthermore, because of the nature of the disease, multiple people working in close proximity could also become ill, potentially resulting in the same department having extended absences simultaneously; a scenario which could negatively impact the efficiency and effectiveness of processes and internal controls throughout the Bank.

None.

    

Not applicable.

Our common stock trades on the NYSE under the trading symbol FBC."FBC". At December 31, 2017,2020, there were 57,321,22852,656,067 shares of our common stock outstanding held by 20,62720,107 stockholders of record. The following table shows

    On January 20, 2021, the high and low sale prices for ourCompany announced that its Board increased the quarterly common stock during each calendar quarter during 2017 and 2016.