QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Michigan | 38-3150651 | |||||||||||||
(State or other jurisdiction of | (I.R.S. Employer | |||||||||||||
Incorporation or organization) | Identification No.) | |||||||||||||
5151 Corporate Drive, | Troy, | Michigan | 48098-2639 | |||||||||||
(Address of principal executive offices) | (Zip code) |
Large accelerated filer | Accelerated filer | ||||||||||
Non-accelerated filer | Smaller reporting company | ||||||||||
Emerging growth company |
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
Common stock | FBC | New York Stock Exchange |
Item 1. | ||||||||
Consolidated Statements of Financial Condition – | ||||||||
Consolidated Statements of Operations – For the three | ||||||||
Consolidated Statements of Comprehensive Income – For the three | ||||||||
Consolidated Statements of Stockholders’ Equity – For the | ||||||||
Consolidated Statements of Cash Flows – For the | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Term | Definition | Term | Definition | |||||||||||||||||
Home Equity | ||||||||||||||||||||
Available-for-Sale | HFI | Held-for-Investment | ||||||||||||||||||
Agencies | Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, and Government National Mortgage Association, Collectively | |||||||||||||||||||
HOLA | Home Owners' Loan Act | |||||||||||||||||||
ALCO | Asset Liability Committee | Home equity | ||||||||||||||||||
ALLL | Allowance for Loan | |||||||||||||||||||
AOCI | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
ASU | Accounting Standards Update | Loans | ||||||||||||||||||
Basel III | Basel Committee on Banking Supervision Third Basel Accord | Loans | ||||||||||||||||||
C&I | Commercial and Industrial | |||||||||||||||||||
Coronavirus Aid, Relief and Economic Security Act | LIBOR | London Interbank Offered Rate | ||||||||||||||||||
CDARS | Certificates of Deposit Account Registry Service | Loan-to-Value Ratio | ||||||||||||||||||
CD | Certificates of Deposit | Management | Flagstar Bancorp’s Management | |||||||||||||||||
Management's Discussion and Analysis | ||||||||||||||||||||
Combined Loan-to-Value Ratio | MSR | Mortgage Servicing Rights | ||||||||||||||||||
Common Stock | Common Shares | N/A | Not Applicable | |||||||||||||||||
CRE | Commercial Real Estate | |||||||||||||||||||
DOJ | United States Department of Justice | Nonperforming Loan | ||||||||||||||||||
DOJ Liability | 2012 Settlement Agreement with the Department of Justice | NYSE | New York Stock Exchange | |||||||||||||||||
Office of the Comptroller of the Currency | ||||||||||||||||||||
Deferred Tax Asset | OCI | Other Comprehensive Income (Loss) | ||||||||||||||||||
EVE | Economic Value of Equity | |||||||||||||||||||
Fannie | Federal National Mortgage Association | |||||||||||||||||||
FASB | Financial Accounting Standards Board | |||||||||||||||||||
Flagstar Bancorp | ||||||||||||||||||||
FDIC | Federal Deposit Insurance Corporation | Real estate owned and other nonperforming assets, net | ||||||||||||||||||
Federal Reserve | Board of Governors of the Federal Reserve System | RMBS | Residential Mortgage-Backed Securities | |||||||||||||||||
FHA | Federal Housing Administration | RWA | Risk Weighted Assets | |||||||||||||||||
FHLB | Federal Home Loan Bank | SEC | Securities and Exchange Commission | |||||||||||||||||
Fair Isaac Corporation | ||||||||||||||||||||
Fallout-Adjusted Locks | SOFR | Secured Oversight Financing Rate | ||||||||||||||||||
FRB | Federal Reserve Bank | |||||||||||||||||||
Freddie Mac | Federal Home Loan Mortgage Corporation | |||||||||||||||||||
FTE | Full Time Equivalent Employees | |||||||||||||||||||
GAAP | United States Generally Accepted Accounting Principles | U.S. Treasury | United States Department of Treasury | |||||||||||||||||
GNMA | Government National Mortgage Association | VIE | Variable Interest Entities | |||||||||||||||||
HELOC | Home Equity Lines of Credit | XBRL | eXtensible Business Reporting Language |
ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 (1) | 2017 | 2016 (1) | ||||||||||||
Selected Mortgage Statistics: | |||||||||||||||
Mortgage rate lock commitments (fallout-adjusted) (2) | $ | 8,898 | $ | 8,291 | $ | 23,896 | $ | 23,281 | |||||||
Mortgage loans sold and securitized | 8,924 | 8,723 | 22,397 | 23,611 | |||||||||||
Selected Ratios: | |||||||||||||||
Interest rate spread | 2.58 | % | 2.36 | % | 2.56 | % | 2.43 | % | |||||||
Net interest margin | 2.78 | % | 2.58 | % | 2.74 | % | 2.62 | % | |||||||
Return on average assets | 0.99 | % | 1.61 | % | 0.94 | % | 1.40 | % | |||||||
Return on average equity | 11.10 | % | 16.53 | % | 10.23 | % | 12.59 | % | |||||||
Return on average common equity | 11.10 | % | 17.45 | % | 10.23 | % | 14.52 | % | |||||||
Equity/assets ratio (average for the period) | 8.95 | % | 9.75 | % | 9.16 | % | 11.05 | % | |||||||
Efficiency ratio | 73.5 | % | 59.9 | % | 73.9 | % | 66.9 | % | |||||||
Effective tax provision rate | 32.4 | % | 34.3 | % | 32.3 | % | 33.8 | % | |||||||
Average Balances: | |||||||||||||||
Average common shares outstanding | 57,162,025 | 56,580,238 | 57,062,696 | 56,556,188 | |||||||||||
Average fully diluted shares outstanding | 58,186,593 | 57,933,806 | 58,133,296 | 57,727,262 | |||||||||||
Average interest-earning assets | $ | 14,737 | $ | 12,318 | $ | 13,709 | $ | 11,944 | |||||||
Average interest paying liabilities | $ | 12,297 | $ | 9,773 | $ | 11,481 | $ | 9,600 | |||||||
Average stockholders' equity | $ | 1,471 | $ | 1,379 | $ | 1,412 | $ | 1,515 |
September 30, 2017 | December 31, 2016 | September 30, 2016 (1) | |||||||||
Selected Statistics: | |||||||||||
Book value per common share | $ | 25.38 | $ | 23.50 | $ | 22.72 | |||||
Tangible book value per share (3) | $ | 25.01 | $ | 23.50 | $ | 22.72 | |||||
Number of common shares outstanding | 57,181,536 | 56,824,802 | 56,597,271 | ||||||||
Equity-to-assets ratio | 8.60 | % | 9.50 | % | 9.01 | % | |||||
Common equity-to-assets ratio | 8.60 | % | 9.50 | % | 9.01 | % | |||||
Capitalized value of MSRs | 1.15 | % | 1.07 | % | 0.96 | % | |||||
Bancorp Tier 1 leverage (to adjusted avg. total assets) (4) | 8.80 | % | 8.88 | % | 8.88 | % | |||||
Bank Tier 1 leverage (to adjusted avg. total assets) | 9.38 | % | 10.52 | % | 10.55 | % | |||||
Number of banking centers | 99 | 99 | 99 | ||||||||
Number of FTE | 3,495 | 2,886 | 2,881 |
Three Months Ended, | 1Q22 vs. 4Q21 | 1Q22 vs. 1Q21 | |||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | Change | Change | |||||||||||||||||||||||||
(Dollars in millions, except share data) | |||||||||||||||||||||||||||||
Net interest income | $ | 165 | $ | 181 | $ | 189 | $ | (16) | $ | (24) | |||||||||||||||||||
(Benefit) provision for credit losses | (4) | (17) | (28) | 13 | 24 | ||||||||||||||||||||||||
Total noninterest income | 160 | 202 | 324 | (42) | (164) | ||||||||||||||||||||||||
Total noninterest expense | 261 | 291 | 347 | (30) | (86) | ||||||||||||||||||||||||
Provision for income taxes | 15 | 24 | 45 | (9) | (30) | ||||||||||||||||||||||||
Net income | $ | 53 | $ | 85 | $ | 149 | $ | (32) | $ | (96) | |||||||||||||||||||
Income per share | |||||||||||||||||||||||||||||
Basic | $ | 0.99 | $ | 1.62 | $ | 2.83 | $ | (0.63) | $ | (1.84) | |||||||||||||||||||
Diluted | $ | 0.99 | $ | 1.60 | $ | 2.80 | $ | (0.61) | $ | (1.81) | |||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||||||||
Basic | 53,219,866 | 52,867,138 | 52,675,562 | 352,728 | 544,304 | ||||||||||||||||||||||||
Diluted | 53,578,001 | 53,577,832 | 53,297,803 | 169 | 280,198 |
Three Months Ended, | 1Q22 vs. 4Q21 | 1Q22 vs. 1Q21 | |||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | Change | Change | |||||||||||||||||||||||||
(Dollars in millions, except share data) | |||||||||||||||||||||||||||||
Net interest income | $ | 165 | $ | 181 | $ | 189 | $ | (16) | $ | (24) | |||||||||||||||||||
(Benefit) provision for credit losses | (4) | (17) | (28) | 13 | 24 | ||||||||||||||||||||||||
Total noninterest income | 160 | 202 | 324 | (42) | (164) | ||||||||||||||||||||||||
Total noninterest expense | 258 | 285 | 312 | (27) | (54) | ||||||||||||||||||||||||
Provision for income taxes | 16 | 25 | 53 | (9) | (37) | ||||||||||||||||||||||||
Net income | $ | 55 | $ | 90 | $ | 176 | $ | (35) | $ | (121) | |||||||||||||||||||
Income per share | |||||||||||||||||||||||||||||
Basic | $ | 1.03 | $ | 1.71 | $ | 3.34 | $ | (0.68) | $ | (2.31) | |||||||||||||||||||
Diluted | $ | 1.02 | $ | 1.69 | $ | 3.31 | $ | (0.67) | $ | (2.29) |
Three Months Ended, | |||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||
Selected Ratios: | |||||||||||||||||
Interest rate spread (1) | 2.91 | % | 2.79 | % | 2.55 | % | |||||||||||
Net interest margin | 3.11 | % | 2.96 | % | 2.82 | % | |||||||||||
Adjusted net interest margin (2) | 3.12 | % | 2.98 | % | 3.02 | % | |||||||||||
Return on average assets | 0.89 | % | 1.28 | % | 1.98 | % | |||||||||||
Adjusted return on average assets (2) | 0.92 | % | 1.35 | % | 2.34 | % | |||||||||||
Return on average common equity | 7.87 | % | 12.74 | % | 25.73 | % | |||||||||||
Return on average tangible common equity (2) | 8.61 | % | 13.79 | % | 27.99 | % | |||||||||||
Adjusted return on average tangible common equity (2) | 9.10 | % | 14.90 | % | 32.97 | % | |||||||||||
Common equity-to-assets ratio | 11.75 | % | 10.67 | % | 8.01 | % | |||||||||||
Common equity-to-assets ratio (average for the period) | 11.12 | % | 10.08 | % | 7.71 | % | |||||||||||
Efficiency ratio | 80.4 | % | 75.9 | % | 67.7 | % | |||||||||||
Adjusted efficiency ratio (2) | 79.6 | % | 74.4 | % | 60.8 | % | |||||||||||
Selected Statistics: | |||||||||||||||||
Book value per common share | $ | 51.33 | $ | 51.09 | $ | 44.71 | |||||||||||
Tangible book value per share (2) | $ | 48.61 | $ | 48.33 | $ | 41.77 | |||||||||||
Number of common shares outstanding | 53,236,067 | 53,197,650 | 52,752,600 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||
(Dollars in millions, except share data) | |||||||||||||||||||||||
Net interest income | $ | 103 | $ | 80 | $ | 23 | $ | 283 | $ | 236 | $ | 47 | |||||||||||
Provision (benefit) for loan losses | 2 | 7 | (5 | ) | 4 | (9 | ) | 13 | |||||||||||||||
Total noninterest income (1) | 130 | 156 | (26 | ) | 346 | 389 | (43 | ) | |||||||||||||||
Total noninterest expense | 171 | 142 | 29 | 465 | 418 | 47 | |||||||||||||||||
Provision for income taxes | 20 | 30 | (10 | ) | 52 | 73 | (21 | ) | |||||||||||||||
Net income | $ | 40 | $ | 57 | $ | (17 | ) | $ | 108 | $ | 143 | $ | (35 | ) | |||||||||
Income per share | |||||||||||||||||||||||
Basic | $ | 0.71 | $ | 0.98 | $ | (0.27 | ) | $ | 1.90 | $ | 2.21 | $ | (0.31 | ) | |||||||||
Diluted | $ | 0.70 | $ | 0.96 | $ | (0.26 | ) | $ | 1.86 | $ | 2.16 | $ | (0.30 | ) |
Three Months Ended, | |||||||||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||||||||||||||||||||
Average Balance | Interest | Annualized Yield/ Rate | Average Balance | Interest | Annualized Yield/ Rate | Average Balance | Interest | Annualized Yield/ Rate | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Interest-Earning Assets | |||||||||||||||||||||||||||||||||||
Loans held-for-sale | $ | 4,833 | $ | 40 | 3.31 | % | $ | 6,384 | $ | 49 | 3.10 | % | $ | 7,464 | $ | 53 | 2.83 | % | |||||||||||||||||
Loans held-for-investment | |||||||||||||||||||||||||||||||||||
Residential first mortgage | 1,500 | 13 | 3.35 | % | 1,569 | 13 | 3.22 | % | 2,132 | 17 | 3.20 | % | |||||||||||||||||||||||
Home equity | 598 | 6 | 4.05 | % | 635 | 6 | 3.93 | % | 820 | 7 | 3.50 | % | |||||||||||||||||||||||
Other | 1,253 | 15 | 4.86 | % | 1,229 | 16 | 4.80 | % | 1,040 | 12 | 4.79 | % | |||||||||||||||||||||||
Total consumer loans | 3,351 | 34 | 4.04 | % | 3,433 | 35 | 3.92 | % | 3,992 | 36 | 3.68 | % | |||||||||||||||||||||||
Commercial real estate | 3,226 | 29 | 3.60 | % | 3,260 | 29 | 3.45 | % | 3,042 | 26 | 3.36 | % | |||||||||||||||||||||||
Commercial and industrial | 1,834 | 16 | 3.52 | % | 1,473 | 14 | 3.69 | % | 1,486 | 13 | 3.53 | % | |||||||||||||||||||||||
Warehouse lending | 3,973 | 32 | 3.25 | % | 5,148 | 47 | 3.54 | % | 6,395 | 64 | 4.00 | % | |||||||||||||||||||||||
Total commercial loans | 9,033 | 77 | 3.43 | % | 9,881 | 90 | 3.53 | % | 10,923 | 103 | 3.76 | % | |||||||||||||||||||||||
Total loans held-for-investment (1) | 12,384 | 111 | 3.59 | % | 13,314 | 125 | 3.63 | % | 14,915 | 139 | 3.73 | % | |||||||||||||||||||||||
Loans with government guarantees | 1,402 | 15 | 4.40 | % | 1,742 | 11 | 2.62 | % | 2,502 | 4 | 0.56 | % | |||||||||||||||||||||||
Investment securities | 2,021 | 11 | 2.19 | % | 2,104 | 11 | 2.09 | % | 2,210 | 12 | 2.21 | % | |||||||||||||||||||||||
Interest-earning deposits | 929 | — | 0.16 | % | 747 | — | 0.15 | % | 87 | — | 0.14 | % | |||||||||||||||||||||||
Total interest-earning assets | $ | 21,569 | $ | 177 | 3.30 | % | $ | 24,291 | $ | 196 | 3.18 | % | $ | 27,178 | $ | 208 | 3.06 | % | |||||||||||||||||
Other assets | 2,592 | 2,408 | 2,887 | ||||||||||||||||||||||||||||||||
Total assets | $ | 24,161 | $ | 26,699 | $ | 30,065 | |||||||||||||||||||||||||||||
Interest-Bearing Liabilities | |||||||||||||||||||||||||||||||||||
Retail deposits | |||||||||||||||||||||||||||||||||||
Demand deposits | $ | 1,626 | $ | — | 0.09 | % | $ | 1,692 | $ | — | 0.05 | % | $ | 1,852 | $ | — | 0.07 | % | |||||||||||||||||
Savings deposits | 4,253 | 2 | 0.14 | % | 4,211 | 2 | 0.14 | % | 3,945 | 1 | 0.14 | % | |||||||||||||||||||||||
Money market deposits | 887 | — | 0.09 | % | 927 | — | 0.09 | % | 685 | — | 0.06 | % | |||||||||||||||||||||||
Certificates of deposit | 929 | 1 | 0.35 | % | 973 | 1 | 0.44 | % | 1,293 | 4 | 0.96 | % | |||||||||||||||||||||||
Total retail deposits | 7,695 | 3 | 0.15 | % | 7,803 | 3 | 0.15 | % | 7,775 | 5 | 0.25 | % | |||||||||||||||||||||||
Government deposits | 1,879 | 1 | 0.17 | % | 1,998 | 1 | 0.17 | % | 1,773 | 1 | 0.22 | % | |||||||||||||||||||||||
Wholesale deposits and other | 1,071 | 2 | 0.89 | % | 1,238 | 3 | 0.93 | % | 1,031 | 4 | 1.59 | % | |||||||||||||||||||||||
Total interest-bearing deposits | 10,645 | 6 | 0.23 | % | 11,039 | 7 | 0.25 | % | 10,579 | 10 | 0.38 | % | |||||||||||||||||||||||
Short-term FHLB advances and other | 658 | — | 0.22 | % | 1,258 | 1 | 0.19 | % | 2,779 | 1 | 0.17 | % | |||||||||||||||||||||||
Long-term FHLB advances | 1,260 | 3 | 0.98 | % | 1,400 | 4 | 0.88 | % | 1,200 | 3 | 1.03 | % | |||||||||||||||||||||||
Other long-term debt | 396 | 3 | 3.23 | % | 396 | 3 | 3.16 | % | 453 | 5 | 4.11 | % | |||||||||||||||||||||||
Total interest-bearing liabilities | $ | 12,959 | $ | 12 | 0.39 | % | $ | 14,093 | $ | 15 | 0.39 | % | $ | 15,011 | $ | 19 | 0.51 | % | |||||||||||||||||
Noninterest-bearing deposits | |||||||||||||||||||||||||||||||||||
Retail deposits and other | 2,474 | 2,468 | 2,270 | ||||||||||||||||||||||||||||||||
Custodial deposits (2) | 4,970 | 6,309 | 7,194 | ||||||||||||||||||||||||||||||||
Total noninterest bearing deposits | 7,444 | 8,777 | 9,464 | ||||||||||||||||||||||||||||||||
Other liabilities | 1,071 | 1,137 | 3,271 | ||||||||||||||||||||||||||||||||
Stockholders’ equity | 2,687 | 2,692 | 2,319 | ||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 24,161 | $ | 26,699 | $ | 30,065 | |||||||||||||||||||||||||||||
Net interest-earning assets | $ | 8,610 | $ | 10,198 | $ | 12,167 | |||||||||||||||||||||||||||||
Net interest income | $ | 165 | $ | 181 | $ | 189 | |||||||||||||||||||||||||||||
Interest rate spread (3) | 2.91 | % | 2.79 | % | 2.55 | % | |||||||||||||||||||||||||||||
Net interest margin (4) | 3.11 | % | 2.96 | % | 2.82 | % | |||||||||||||||||||||||||||||
Ratio of average interest-earning assets to interest-bearing liabilities | 166.4 | % | 172.4 | % | 181.1 | % | |||||||||||||||||||||||||||||
Total average deposits | $ | 18,089 | $ | 19,816 | $ | 20,043 |
Three Months Ended September 30, | |||||||||||||||||
2017 | 2016 | ||||||||||||||||
Average Balance | Interest | Annualized Yield/ Rate | Average Balance | Interest | Annualized Yield/ Rate | ||||||||||||
(Dollars in millions) | |||||||||||||||||
Interest-Earning Assets | |||||||||||||||||
Loans held-for-sale | $ | 4,476 | $ | 45 | 3.99 | % | $ | 3,416 | $ | 30 | 3.51 | % | |||||
Loans held-for-investment | |||||||||||||||||
Residential first mortgage | 2,594 | 22 | 3.32 | % | 2,090 | 17 | 3.17 | % | |||||||||
Home equity | 486 | 6 | 5.11 | % | 460 | 6 | 5.03 | % | |||||||||
Other | 26 | — | 4.52 | % | 30 | — | 4.59 | % | |||||||||
Total Consumer loans | 3,106 | 28 | 3.61 | % | 2,580 | 23 | 3.52 | % | |||||||||
Commercial Real Estate | 1,646 | 19 | 4.43 | % | 1,082 | 9 | 3.43 | % | |||||||||
Commercial and Industrial | 1,073 | 13 | 4.77 | % | 633 | 7 | 4.27 | % | |||||||||
Warehouse Lending | 978 | 12 | 4.82 | % | 1,553 | 17 | 4.21 | % | |||||||||
Total Commercial loans | 3,697 | 44 | 4.63 | % | 3,268 | 33 | 3.96 | % | |||||||||
Total loans held-for-investment (1) | 6,803 | 72 | 4.16 | % | 5,848 | 56 | 3.77 | % | |||||||||
Loans with government guarantees | 264 | 3 | 4.58 | % | 432 | 4 | 3.88 | % | |||||||||
Investment securities | 3,101 | 20 | 2.58 | % | 2,516 | 16 | 2.55 | % | |||||||||
Interest-earning deposits | 93 | — | 1.23 | % | 106 | — | 0.48 | % | |||||||||
Total interest-earning assets | 14,737 | 140 | 3.77 | % | 12,318 | 106 | 3.42 | % | |||||||||
Other assets | 1,702 | 1,830 | |||||||||||||||
Total assets | $ | 16,439 | $ | 14,148 | |||||||||||||
Interest-Bearing Liabilities | |||||||||||||||||
Retail deposits | |||||||||||||||||
Demand deposits | $ | 489 | $ | — | 0.14 | % | $ | 509 | $ | — | 0.20 | % | |||||
Savings deposits | 3,838 | 7 | 0.76 | % | 3,751 | 8 | 0.77 | % | |||||||||
Money market deposits | 276 | — | 0.57 | % | 250 | — | 0.41 | % | |||||||||
Certificates of deposit | 1,182 | 4 | 1.19 | % | 1,071 | 3 | 1.05 | % | |||||||||
Total retail deposits | 5,785 | 11 | 0.78 | % | 5,581 | 11 | 0.75 | % | |||||||||
Government deposits | |||||||||||||||||
Demand deposits | 250 | — | 0.43 | % | 243 | — | 0.39 | % | |||||||||
Savings deposits | 362 | 1 | 0.71 | % | 478 | 1 | 0.52 | % | |||||||||
Certificates of deposit | 329 | 1 | 0.89 | % | 355 | — | 0.52 | % | |||||||||
Total government deposits | 941 | 2 | 0.70 | % | 1,076 | 1 | 0.49 | % | |||||||||
Wholesale deposits and other | 35 | — | 1.49 | % | — | — | —% | ||||||||||
Total interest-bearing deposits | 6,761 | 13 | 0.78 | % | 6,657 | 12 | 0.71 | % | |||||||||
Short-term Federal Home Loan Bank advances and other | 3,809 | 11 | 1.17 | % | 1,073 | 1 | 0.44 | % | |||||||||
Long-term Federal Home Loan Bank advances | 1,234 | 6 | 1.99 | % | 1,576 | 7 | 1.81 | % | |||||||||
Other long-term debt | 493 | 7 | 5.09 | % | 467 | 6 | 4.86 | % | |||||||||
Total interest-bearing liabilities | 12,297 | 37 | 1.19 | % | 9,773 | 26 | 1.06 | % | |||||||||
Noninterest-bearing deposits (2) | 2,244 | 2,469 | |||||||||||||||
Other liabilities | 427 | 527 | |||||||||||||||
Stockholders’ equity | 1,471 | 1,379 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 16,439 | $ | 14,148 | |||||||||||||
Net interest-earning assets | $ | 2,440 | $ | 2,545 | |||||||||||||
Net interest income | $ | 103 | $ | 80 | |||||||||||||
Interest rate spread (3) | 2.58 | % | 2.36 | % | |||||||||||||
Net interest margin (4) | 2.78 | % | 2.58 | % | |||||||||||||
Ratio of average interest-earning assets to interest-bearing liabilities | 119.9 | % | 126.0 | % |
Nine Months Ended September 30, | |||||||||||||||||
2017 | 2016 | ||||||||||||||||
Average Balance | Interest | Annualized Yield/ Rate | Average Balance | Interest | Annualized Yield/ Rate | ||||||||||||
(Dollars in millions) | |||||||||||||||||
Interest-Earning Assets | |||||||||||||||||
Loans held-for-sale | $ | 4,014 | $ | 119 | 3.96 | % | $ | 3,071 | $ | 83 | 3.64 | % | |||||
Loans held-for-investment | |||||||||||||||||
Residential first mortgage | 2,497 | 62 | 3.34 | % | 2,365 | 56 | 3.14 | % | |||||||||
Home equity | 453 | 17 | 5.04 | % | 485 | 19 | 5.23 | % | |||||||||
Other | 26 | 1 | 4.52 | % | 29 | 1 | 4.82 | % | |||||||||
Total Consumer loans | 2,976 | 80 | 3.61 | % | 2,879 | 76 | 3.51 | % | |||||||||
Commercial Real Estate | 1,482 | 47 | 4.15 | % | 936 | 24 | 3.40 | % | |||||||||
Commercial and Industrial | 929 | 33 | 4.71 | % | 601 | 19 | 4.12 | % | |||||||||
Warehouse Lending | 840 | 30 | 4.70 | % | 1,279 | 41 | 4.25 | % | |||||||||
Total Commercial loans | 3,251 | 110 | 4.45 | % | 2,816 | 84 | 3.94 | % | |||||||||
Total loans held-for-investment (1) | 6,227 | 190 | 4.05 | % | 5,695 | 160 | 3.72 | % | |||||||||
Loans with government guarantees | 300 | 10 | 4.41 | % | 450 | 12 | 3.40 | % | |||||||||
Investment securities | 3,093 | 59 | 2.55 | % | 2,589 | 50 | 2.58 | % | |||||||||
Interest-earning deposits | 75 | 1 | 1.08 | % | 139 | 1 | 0.50 | % | |||||||||
Total interest-earning assets | 13,709 | 379 | 3.68 | % | 11,944 | 306 | 3.40 | % | |||||||||
Other assets | 1,697 | 1,767 | |||||||||||||||
Total assets | $ | 15,406 | $ | 13,711 | |||||||||||||
Interest-Bearing Liabilities | |||||||||||||||||
Retail deposits | |||||||||||||||||
Demand deposits | $ | 502 | $ | 1 | 0.16 | % | $ | 479 | $ | 1 | 0.17 | % | |||||
Savings deposits | 3,899 | 22 | 0.76 | % | 3,720 | 21 | 0.78 | % | |||||||||
Money market deposits | 264 | 1 | 0.49 | % | 285 | 1 | 0.44 | % | |||||||||
Certificates of deposit | 1,116 | 9 | 1.12 | % | 789 | 7 | 1.21 | % | |||||||||
Total retail deposits | 5,781 | 33 | 0.76 | % | 5,273 | 30 | 0.77 | % | |||||||||
Government deposits | |||||||||||||||||
Demand deposits | 228 | 1 | 0.41 | % | 234 | 1 | 0.39 | % | |||||||||
Savings deposits | 410 | 2 | 0.59 | % | 432 | 2 | 0.52 | % | |||||||||
Certificates of deposit | 314 | 1 | 0.73 | % | 563 | 1 | 0.35 | % | |||||||||
Total government deposits | 952 | 4 | 0.59 | % | 1,229 | 4 | 0.42 | % | |||||||||
Wholesale deposits and other | 16 | — | 1.21 | % | — | — | — | % | |||||||||
Total interest-bearing deposits | 6,749 | 37 | 0.74 | % | 6,502 | 34 | 0.70 | % | |||||||||
Short-term Federal Home Loan Bank advances and other | 3,028 | 23 | 1.01 | % | 1,190 | 4 | 0.41 | % | |||||||||
Long-term Federal Home Loan Bank advances | 1,211 | 17 | 1.92 | % | 1,587 | 22 | 1.88 | % | |||||||||
Other long-term debt | 493 | 19 | 5.06 | % | 321 | 10 | 4.05 | % | |||||||||
Total interest-bearing liabilities | 11,481 | 96 | 1.12 | % | 9,600 | 70 | 0.97 | % | |||||||||
Noninterest-bearing deposits (2) | 2,098 | 2,101 | |||||||||||||||
Other liabilities | 415 | 495 | |||||||||||||||
Stockholders’ equity | 1,412 | 1,515 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 15,406 | $ | 13,711 | |||||||||||||
Net interest-earning assets | $ | 2,228 | $ | 2,344 | |||||||||||||
Net interest income | $ | 283 | $ | 236 | |||||||||||||
Interest rate spread (3) | 2.56 | % | 2.43 | % | |||||||||||||
Net interest margin (4) | 2.74 | % | 2.62 | % | |||||||||||||
Ratio of average interest-earning assets to interest-bearing liabilities | 119.4 | % | 124.4 | % |
Three Months Ended, | Three Months Ended, | ||||||||||||||||||||||
March 31, 2022 versus December 31, 2021 Increase (Decrease) Due to: | March 31, 2022 versus March 31, 2021 Increase (Decrease) Due to: | ||||||||||||||||||||||
Rate | Volume | Total | Rate | Volume | Total | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Interest-Earning Assets | |||||||||||||||||||||||
Loans held-for-sale | $ | 4 | $ | (13) | $ | (9) | $ | 6 | $ | (19) | $ | (13) | |||||||||||
Loans held-for-investment | |||||||||||||||||||||||
Residential first mortgage | 1 | (1) | — | 1 | (5) | (4) | |||||||||||||||||
Home equity | — | — | — | 1 | (2) | (1) | |||||||||||||||||
Other | (1) | — | (1) | — | 3 | 3 | |||||||||||||||||
Total consumer loans | — | (1) | (1) | 4 | (6) | (2) | |||||||||||||||||
Commercial real estate | — | — | — | 1 | 2 | 3 | |||||||||||||||||
Commercial and industrial | (1) | 3 | 2 | — | 3 | 3 | |||||||||||||||||
Warehouse lending | (5) | (10) | (15) | (8) | (24) | (32) | |||||||||||||||||
Total commercial loans | (6) | (7) | (13) | (8) | (18) | (26) | |||||||||||||||||
Total loans held-for-investment | (6) | (8) | (14) | (4) | (24) | (28) | |||||||||||||||||
Loans with government guarantees | 8 | (4) | 4 | 13 | (2) | 11 | |||||||||||||||||
Investment securities | — | — | — | — | (1) | (1) | |||||||||||||||||
Interest-earning deposits and other | — | — | — | — | — | — | |||||||||||||||||
Total interest-earning assets | $ | 3 | $ | (22) | $ | (19) | $ | 12 | $ | (43) | $ | (31) | |||||||||||
Interest-Bearing Liabilities | |||||||||||||||||||||||
Interest-bearing deposits | $ | (1) | $ | — | $ | (1) | $ | (4) | $ | — | $ | (4) | |||||||||||
Short-term FHLB advances and other borrowings | (1) | — | (1) | — | (1) | (1) | |||||||||||||||||
Long-term FHLB advances | (1) | — | (1) | — | — | — | |||||||||||||||||
Other long-term debt | — | — | — | (1) | (1) | (2) | |||||||||||||||||
Total interest-bearing liabilities | (2) | (1) | (3) | (4) | (3) | (7) | |||||||||||||||||
Change in net interest income | $ | 5 | $ | (21) | $ | (16) | $ | 16 | $ | (40) | $ | (24) |
Three Months Ended September 30, | |||||||||||
2017 Versus 2016 Increase (Decrease) Due to: | |||||||||||
Rate | Volume | Total | |||||||||
(Dollars in millions) | |||||||||||
Interest-Earning Assets | |||||||||||
Loans held-for-sale | $ | 6 | $ | 9 | $ | 15 | |||||
Loans held-for-investment | |||||||||||
Residential first mortgage | 1 | 4 | 5 | ||||||||
Total Consumer loans | 1 | 4 | 5 | ||||||||
Commercial Real Estate | 5 | 5 | 10 | ||||||||
Commercial and Industrial | 1 | 5 | 6 | ||||||||
Warehouse Lending | 1 | (6 | ) | (5 | ) | ||||||
Total Commercial loans | 7 | 4 | 11 | ||||||||
Total loans held-for-investment | 8 | 8 | 16 | ||||||||
Loans with government guarantees | 1 | (2 | ) | (1 | ) | ||||||
Investment securities | — | 4 | 4 | ||||||||
Total interest-earning assets | $ | 15 | $ | 19 | $ | 34 | |||||
Interest-Bearing Liabilities | |||||||||||
Interest-bearing deposits | $ | 1 | $ | — | $ | 1 | |||||
Short-term Federal Home Loan Bank advances and other | 7 | 3 | 10 | ||||||||
Long-term Federal Home Loan Bank advances | 1 | (2 | ) | (1 | ) | ||||||
Other long-term debt | — | 1 | 1 | ||||||||
Total interest-bearing liabilities | 9 | 2 | 11 | ||||||||
Change in net interest income | $ | 6 | $ | 17 | $ | 23 |
Nine Months Ended September 30, | |||||||||||
2017 Versus 2016 Increase (Decrease) Due to: | |||||||||||
Rate | Volume | Total | |||||||||
(Dollars in millions) | |||||||||||
Interest-Earning Assets | |||||||||||
Loans held-for-sale | $ | 10 | $ | 26 | $ | 36 | |||||
Loans held-for-investment | |||||||||||
Residential first mortgage | 3 | 3 | 6 | ||||||||
Home equity | — | (2 | ) | (2 | ) | ||||||
Total Consumer loans | 3 | 1 | 4 | ||||||||
Commercial Real Estate | 9 | 14 | 23 | ||||||||
Commercial and Industrial | 4 | 10 | 14 | ||||||||
Warehouse Lending | 3 | (14 | ) | (11 | ) | ||||||
Total Commercial loans | 16 | 10 | 26 | ||||||||
Total loans held-for-investment | 19 | 11 | 30 | ||||||||
Loans with government guarantees | 2 | (4 | ) | (2 | ) | ||||||
Investment securities | (1 | ) | 10 | 9 | |||||||
Total interest-earning assets | $ | 30 | $ | 43 | $ | 73 | |||||
Interest-Bearing Liabilities | |||||||||||
Interest-bearing deposits | $ | 1 | $ | 2 | $ | 3 | |||||
Short-term Federal Home Loan Bank advances and other | 14 | 5 | 19 | ||||||||
Long-term Federal Home Loan Bank advances | — | (5 | ) | (5 | ) | ||||||
Other long-term debt | 4 | 5 | 9 | ||||||||
Total interest-bearing liabilities | 19 | 7 | 26 | ||||||||
Change in net interest income | $ | 11 | $ | 36 | $ | 47 |
Three Months Ended, | 1Q22 vs. 4Q21 | 1Q22 vs. 1Q21 | |||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | Change | Change | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Net gain on loan sales | $ | 45 | $ | 91 | $ | 227 | $ | (46) | $ | (182) | |||||||||||||||||||
Loan fees and charges | 27 | 29 | 42 | (2) | (15) | ||||||||||||||||||||||||
Net return on mortgage servicing rights | 29 | 19 | — | 10 | 29 | ||||||||||||||||||||||||
Loan administration income | 33 | 36 | 27 | (3) | 6 | ||||||||||||||||||||||||
Deposit fees and charges | 9 | 8 | 8 | 1 | 1 | ||||||||||||||||||||||||
Other noninterest income | 17 | 19 | 20 | (2) | (3) | ||||||||||||||||||||||||
Total noninterest income | $ | 160 | $ | 202 | $ | 324 | $ | (42) | $ | (164) |
Three Months Ended, | 1Q22 vs. 4Q21 | 1Q22 vs. 1Q21 | |||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | Change | Change | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Mortgage rate lock commitments (fallout-adjusted) (1)(3) | $ | 7,700 | $ | 8,900 | $ | 12,300 | $ | (1,200) | $ | (4,600) | |||||||||||||||||||
Mortgage loans closed (3) | $ | 8,200 | $ | 10,700 | $ | 13,800 | $ | (2,500) | $ | (5,600) | |||||||||||||||||||
Mortgage loans sold and securitized (3) | $ | 9,900 | $ | 12,100 | $ | 13,700 | $ | (2,200) | $ | (3,800) | |||||||||||||||||||
Net margin on mortgage rate lock commitments (fallout-adjusted) (1)(2) | 0.58 | % | 1.02 | % | 1.84 | % | (0.44) | % | (1.26) | % | |||||||||||||||||||
Net margin on loans sold and securitized | 0.45 | % | 0.75 | % | 1.65 | % | (0.30) | % | (1.20) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Net gain on loan sales | $ | 75 | $ | 94 | $ | (19 | ) | $ | 189 | $ | 259 | $ | (70 | ) | |||||||||
Loan fees and charges | 23 | 22 | 1 | 58 | 56 | 2 | |||||||||||||||||
Deposit fees and charges | 5 | 5 | — | 14 | 17 | (3 | ) | ||||||||||||||||
Loan administration income | 5 | 4 | 1 | 16 | 14 | 2 | |||||||||||||||||
Net return (loss)on mortgage servicing rights | 6 | (11 | ) | 17 | 26 | (21 | ) | 47 | |||||||||||||||
Representation and warranty benefit | 4 | 6 | (2 | ) | 11 | 12 | (1 | ) | |||||||||||||||
Other noninterest income | 12 | 36 | (24 | ) | 32 | 52 | (20 | ) | |||||||||||||||
Total noninterest income | $ | 130 | $ | 156 | $ | (26 | ) | $ | 346 | $ | 389 | $ | (43 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Mortgage rate lock commitments (fallout-adjusted) (1) | $ | 8,898 | $ | 8,291 | $ | 23,896 | $ | 23,281 | |||||||
Net margin on mortgage rate lock commitments (fallout-adjusted) (1) (2) | 0.84 | % | 1.13 | % | 0.79 | % | 1.05 | % | |||||||
Gain on loan sales LHFS + net return (loss) on the MSR | $ | 81 | $ | 83 | $ | 215 | $ | 223 | |||||||
Mortgage loans sold and securitized | 8,924 | 8,723 | 22,397 | 23,611 | |||||||||||
Net margin on loans sold and securitized | 0.84 | % | 1.08 | % | 0.84 | % | 1.03 | % |
Three Months Ended, | 1Q22 vs. 4Q21 | 1Q22 vs. 1Q21 | ||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | Change | Change | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Compensation and benefits | $ | 127 | $ | 137 | $ | 144 | $ | (10) | $ | (17) | ||||||||||||||||
Occupancy and equipment | 45 | 47 | 46 | (2) | (1) | |||||||||||||||||||||
Commissions | 26 | 38 | 62 | (12) | (36) | |||||||||||||||||||||
Loan processing expense | 21 | 21 | 21 | — | — | |||||||||||||||||||||
Legal and professional expense | 11 | 13 | 8 | (2) | 3 | |||||||||||||||||||||
Federal insurance premiums | 4 | 4 | 6 | — | (2) | |||||||||||||||||||||
Intangible asset amortization | 2 | 3 | 3 | (1) | (1) | |||||||||||||||||||||
General, administrative and other | 25 | 28 | 57 | (3) | (32) | |||||||||||||||||||||
Total noninterest expense | $ | 261 | $ | 291 | $ | 347 | $ | (30) | $ | (86) | ||||||||||||||||
Efficiency ratio | 80.4 | % | 75.9 | % | 67.7 | % | 4.5 | % | 12.7 | % | ||||||||||||||||
Number of FTE employees | 5,341 | 5,395 | 5,418 | (54) | (77) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Compensation and benefits | $ | 76 | $ | 69 | $ | 7 | $ | 219 | $ | 203 | $ | 16 | |||||||||||
Commissions | 23 | 16 | 7 | 49 | 40 | 9 | |||||||||||||||||
Occupancy and equipment | 28 | 21 | 7 | 75 | 64 | 11 | |||||||||||||||||
Loan processing expense | 15 | 13 | 2 | 41 | 40 | 1 | |||||||||||||||||
Legal and professional expense | 7 | 5 | 2 | 22 | 20 | 2 | |||||||||||||||||
Other noninterest expense | 22 | 18 | 4 | 59 | 51 | 8 | |||||||||||||||||
Total noninterest expense | $ | 171 | $ | 142 | $ | 29 | $ | 465 | $ | 418 | $ | 47 | |||||||||||
Efficiency ratio | 73.5 | % | 59.9 | % | 13.6 | % | 73.9 | % | 66.9 | % | 7.0 | % | |||||||||||
September 30, 2017 | June 30, 2017 | Change | September 30, 2017 | December 31, 2016 | Change | ||||||||||||||||||
Number of FTE | 3,495 | 3,432 | 63 | 3,495 | 2,886 | 609 |
Three Months Ended, | 1Q22 vs. 4Q21 | 1Q22 vs. 1Q21 | ||||||||||||||||||||||||
Community Banking | March 31, 2022 | December 31, 2021 | March 31, 2021 | Change | Change | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Summary of Operations | ||||||||||||||||||||||||||
Net interest income | $ | 122 | $ | 147 | $ | 156 | $ | (25) | $ | (34) | ||||||||||||||||
(Benefit) provision for credit losses | 22 | 9 | (14) | 13 | 36 | |||||||||||||||||||||
Net interest income after (benefit) provision for credit losses | 100 | 138 | 170 | (38) | (70) | |||||||||||||||||||||
Other noninterest income | 18 | 16 | 18 | 2 | — | |||||||||||||||||||||
Total noninterest income | 18 | 16 | 18 | 2 | — | |||||||||||||||||||||
Compensation and benefits | 28 | 26 | 31 | 2 | (3) | |||||||||||||||||||||
Commissions | 1 | 1 | 1 | — | — | |||||||||||||||||||||
Loan processing expense | 2 | 1 | 1 | 1 | 1 | |||||||||||||||||||||
General, administrative and other | 18 | 21 | 25 | (3) | (7) | |||||||||||||||||||||
Total noninterest expense | 49 | 49 | 58 | — | (9) | |||||||||||||||||||||
Income before indirect overhead allocations and income taxes | 69 | 105 | 130 | (36) | (61) | |||||||||||||||||||||
Indirect overhead allocation | (10) | (9) | (10) | (1) | — | |||||||||||||||||||||
Provision for income taxes | 12 | 20 | 25 | (8) | (13) | |||||||||||||||||||||
Net income | $ | 47 | $ | 76 | $ | 95 | $ | (29) | $ | (48) | ||||||||||||||||
Key Metrics | ||||||||||||||||||||||||||
Number of FTE employees | 1,173 | 1,123 | 1,273 | 50 | (100) | |||||||||||||||||||||
Number of bank branches | 158 | 158 | 158 | — | — |
Three Months Ended, | 1Q22 vs. 4Q21 | 1Q22 vs. 1Q21 | ||||||||||||||||||||||||
Mortgage Originations | March 31, 2022 | December 31, 2021 | March 31, 2021 | Change | Change | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Summary of Operations | ||||||||||||||||||||||||||
Net interest income | $ | 56 | $ | 62 | $ | 56 | $ | (6) | $ | — | ||||||||||||||||
Provision (benefit) for credit losses | 3 | (3) | (2) | 6 | 5 | |||||||||||||||||||||
Net interest income after provision (benefit) for credit losses | 53 | 65 | 58 | (12) | (5) | |||||||||||||||||||||
Net gain on loan sales | 45 | 91 | 227 | (46) | (182) | |||||||||||||||||||||
Loan fees and charges | 6 | 10 | 24 | (4) | (18) | |||||||||||||||||||||
Loan administration expense | (7) | (7) | (10) | — | 3 | |||||||||||||||||||||
Net return on mortgage servicing rights | 29 | 19 | — | 10 | 29 | |||||||||||||||||||||
Other noninterest income | 1 | 5 | 3 | (4) | (2) | |||||||||||||||||||||
Total noninterest income | 74 | 118 | 244 | (44) | (170) | |||||||||||||||||||||
Compensation and benefits | 45 | 49 | 54 | (4) | (9) | |||||||||||||||||||||
Commissions | 25 | 37 | 61 | (12) | (36) | |||||||||||||||||||||
Loan processing expense | 9 | 11 | 11 | (2) | (2) | |||||||||||||||||||||
General, administrative and other | 11 | 23 | 22 | (12) | (11) | |||||||||||||||||||||
Total noninterest expense | 90 | 120 | 148 | (30) | (58) | |||||||||||||||||||||
Income before indirect overhead allocations and income taxes | 37 | 63 | 154 | (26) | (117) | |||||||||||||||||||||
Indirect overhead allocation | (15) | (17) | (19) | 2 | 4 | |||||||||||||||||||||
Provision for income taxes | 4 | 9 | 28 | (5) | (24) | |||||||||||||||||||||
Net income | $ | 18 | $ | 37 | $ | 107 | $ | (19) | $ | (89) | ||||||||||||||||
Key Metrics | ||||||||||||||||||||||||||
Mortgage rate lock commitments (fallout-adjusted) (1)(2) | $ | 7,700 | $ | 8,900 | $ | 12,300 | $ | (1,200) | $ | (4,600) | ||||||||||||||||
Noninterest expense to closing volume | 1.11 | % | 1.13 | % | 1.07 | % | (0.02) | % | 0.04 | % | ||||||||||||||||
Number of FTE employees | 2,044 | 2,109 | 2,083 | (100) | (39) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Consumer loans | |||||||||||||||
Residential first mortgage | $ | 9,572 | $ | 9,192 | $ | 24,659 | $ | 23,856 | |||||||
Home equity (1) | 94 | 50 | 225 | 137 | |||||||||||
Total consumer loans | 9,666 | 9,242 | 24,884 | 23,993 | |||||||||||
Commercial loans (2) | 265 | 248 | 932 | 496 | |||||||||||
Total loan originations | $ | 9,931 | $ | 9,490 | $ | 25,816 | $ | 24,489 |
Three Months Ended, | 1Q22 vs. 4Q21 | 1Q22 vs. 1Q21 | ||||||||||||||||||||||||
Mortgage Servicing | March 31, 2022 | December 31, 2021 | March 31, 2021 | Change | Change | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Summary of Operations | ||||||||||||||||||||||||||
Net interest income | $ | 3 | $ | 4 | $ | 4 | $ | (1) | $ | (1) | ||||||||||||||||
Loan fees and charges | 21 | 18 | 18 | 3 | 3 | |||||||||||||||||||||
Loan administration income | 43 | 45 | 40 | (2) | 3 | |||||||||||||||||||||
Total noninterest income | 64 | 63 | 58 | 1 | 6 | |||||||||||||||||||||
Compensation and benefits | 16 | 16 | 16 | — | — | |||||||||||||||||||||
Loan processing expense | 9 | 8 | 8 | 1 | 1 | |||||||||||||||||||||
General, administrative and other | 21 | 22 | 22 | (1) | (1) | |||||||||||||||||||||
Total noninterest expense | 46 | 46 | 46 | — | — | |||||||||||||||||||||
Income before indirect overhead allocations and income taxes | 21 | 19 | 16 | 2 | 5 | |||||||||||||||||||||
Indirect overhead allocation | (6) | (5) | (6) | (1) | — | |||||||||||||||||||||
Provision for income taxes | 3 | 3 | 2 | — | 1 | |||||||||||||||||||||
Net income | $ | 12 | $ | 11 | $ | 8 | $ | 1 | $ | 4 | ||||||||||||||||
Key Metrics | ||||||||||||||||||||||||||
Average number of residential loans serviced (1) | 1,245,000 | 1,218,000 | 1,117,000 | 27,000 | 128,000 | |||||||||||||||||||||
Number of FTE employees | 736 | 729 | 721 | 7 | 15 |
March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||||||||||||
Unpaid Principal Balance (1) | Number of accounts | Unpaid Principal Balance (1) | Number of accounts | Unpaid Principal Balance (1) | Number of accounts | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Loan Servicing | ||||||||||||||||||||||||||
Subserviced for others (2) | $ | 253,013 | 1,041,251 | $ | 246,858 | 1,032,923 | $ | 197,053 | 921,126 | |||||||||||||||||
Serviced for others (3) | 40,065 | 154,404 | 35,074 | 137,243 | 40,402 | 160,511 | ||||||||||||||||||||
Serviced for own loan portfolio (4) | 7,215 | 60,167 | 8,793 | 63,426 | 9,965 | 66,363 | ||||||||||||||||||||
Total loans serviced | $ | 300,293 | 1,255,822 | $ | 290,725 | 1,233,592 | $ | 247,420 | 1,148,000 |
September 30, 2017 | December 31, 2016 | ||||||||||||
Amount | Number of accounts | Amount | Number of accounts | ||||||||||
(Dollars in millions) | |||||||||||||
Residential loan servicing | |||||||||||||
Serviced for own loan portfolio (1) | $ | 7,376 | 31,135 | $ | 5,816 | 29,244 | |||||||
Serviced for others | 21,342 | 87,215 | 31,207 | 133,270 | |||||||||
Subserviced for others (2) | 62,351 | 296,913 | 43,127 | 220,075 | |||||||||
Total residential loans serviced | $ | 91,069 | 415,263 | $ | 80,150 | 382,589 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Community Banking | $ | 10 | $ | 7 | $ | 3 | $ | 26 | $ | 34 | $ | (8 | ) | ||||||||||
Mortgage Originations | 31 | 39 | (8 | ) | 87 | 99 | (12 | ) | |||||||||||||||
Mortgage Servicing | (4 | ) | (3 | ) | (1 | ) | (12 | ) | (9 | ) | (3 | ) | |||||||||||
Other | 3 | 14 | (11 | ) | 7 | 19 | (12 | ) | |||||||||||||||
Total net income | $ | 40 | $ | 57 | $ | (17 | ) | $ | 108 | $ | 143 | $ | (35 | ) |
Three Months Ended, | 1Q22 vs. 4Q21 | 1Q22 vs. 1Q21 | ||||||||||||||||||||||||
Other | March 31, 2022 | December 31, 2021 | March 31, 2021 | Change | Change | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Summary of Operations | ||||||||||||||||||||||||||
Net interest income | $ | (16) | $ | (32) | $ | (27) | $ | 16 | $ | 11 | ||||||||||||||||
(Benefit) provision for credit losses | (29) | (23) | (12) | (6) | (17) | |||||||||||||||||||||
Net interest income after (benefit) provision for credit losses | 13 | (9) | (15) | 22 | 28 | |||||||||||||||||||||
Net gain on loan sales | — | — | — | — | — | |||||||||||||||||||||
Loan fees and charges | — | 1 | — | (1) | — | |||||||||||||||||||||
Loan administration expense | (3) | (2) | (3) | (1) | — | |||||||||||||||||||||
Other noninterest income | 7 | 6 | 7 | 1 | — | |||||||||||||||||||||
Total noninterest income | 4 | 5 | 4 | (1) | — | |||||||||||||||||||||
Compensation and benefits | 38 | 44 | 43 | (6) | (5) | |||||||||||||||||||||
Commissions | — | — | — | — | — | |||||||||||||||||||||
Loan processing expense | 1 | 1 | 1 | — | — | |||||||||||||||||||||
General, administrative and other | 37 | 29 | 51 | 8 | (14) | |||||||||||||||||||||
Total noninterest expense | 76 | 74 | 95 | 2 | (19) | |||||||||||||||||||||
Income before indirect overhead allocations and income taxes | (59) | (78) | (106) | 19 | 47 | |||||||||||||||||||||
Indirect overhead allocation | 31 | 31 | 35 | — | (4) | |||||||||||||||||||||
Provision for income taxes | (4) | (8) | (10) | 4 | 6 | |||||||||||||||||||||
Net loss | $ | (24) | $ | (39) | $ | (61) | $ | 15 | $ | 37 | ||||||||||||||||
Key Metrics | ||||||||||||||||||||||||||
Number of FTE employees | 1,388 | 1,484 | 1,340 | (96) | 48 |
March 31, 2022 | % of Total | December 31, 2021 | % of Total | Change | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Residential first mortgage | $ | 1,499 | 11.3 | % | $ | 1,536 | 11.5 | % | $ | (37) | |||||||||||||
Home equity (1) | 596 | 4.5 | % | 613 | 4.5 | % | (17) | ||||||||||||||||
Other | 1,267 | 9.6 | % | 1,236 | 9.2 | % | 31 | ||||||||||||||||
Total consumer loans | 3,362 | 25.4 | % | 3,385 | 25.2 | % | (23) | ||||||||||||||||
Commercial loans | |||||||||||||||||||||||
Commercial real estate | 3,254 | 24.6 | % | 3,223 | 24.0 | % | 31 | ||||||||||||||||
Commercial and industrial | 1,979 | 15.0 | % | 1,826 | 13.6 | % | 153 | ||||||||||||||||
Warehouse lending | 4,641 | 35.1 | % | 4,974 | 37.1 | % | (333) | ||||||||||||||||
Total commercial loans | 9,874 | 74.6 | % | 10,023 | 74.8 | % | (149) | ||||||||||||||||
Total loans held-for-investment | $ | 13,236 | 100.0 | % | $ | 13,408 | 100.0 | % | $ | (172) |
September 30, 2017 | December 31, 2016 | Change | |||||||||
(Dollars in millions) | |||||||||||
Consumer loans | |||||||||||
Residential first mortgage | $ | 2,665 | $ | 2,327 | $ | 338 | |||||
Home equity | 496 | 443 | 53 | ||||||||
Other | 26 | 28 | (2 | ) | |||||||
Total consumer loans | 3,187 | 2,798 | 389 | ||||||||
Commercial loans | |||||||||||
Commercial real estate (1) | 1,760 | 1,261 | $ | 499 | |||||||
Commercial and industrial | 1,097 | 769 | 328 | ||||||||
Warehouse lending | 1,159 | 1,237 | (78 | ) | |||||||
Total commercial loans | 4,016 | 3,267 | 749 | ||||||||
Total loans held-for-investment | $ | 7,203 | $ | 6,065 | $ | 1,138 |
March 31, 2022 | December 31, 2021 | ||||||||||
(Dollars in millions) | |||||||||||
Estimated LTVs (1) | |||||||||||
Less than 80% and current FICO scores (2): | |||||||||||
Equal to or greater than 660 | $ | 962 | $ | 988 | |||||||
Less than 660 | 55 | 50 | |||||||||
80% and greater and current FICO scores (2): | |||||||||||
Equal to or greater than 660 | 369 | 385 | |||||||||
Less than 660 | 113 | 113 | |||||||||
Total | $ | 1,499 | $ | 1,536 | |||||||
Geographic region | |||||||||||
California | $ | 444 | $ | 441 | |||||||
Michigan | 438 | 400 | |||||||||
Florida | 80 | 68 | |||||||||
Texas | 73 | 83 | |||||||||
Washington | 57 | 59 | |||||||||
New York | 42 | 38 | |||||||||
Indiana | 40 | 34 | |||||||||
Colorado | 31 | 30 | |||||||||
Illinois | 27 | 31 | |||||||||
New Jersey | 22 | 24 | |||||||||
Other | 245 | 328 | |||||||||
Total | $ | 1,499 | $ | 1,536 |
September 30, 2017 | December 31, 2016 | ||||||
(Dollars in millions) | |||||||
Current estimated LTV ratios | |||||||
Less than 80% and refreshed FICO scores (1): | |||||||
Equal to or greater than 660 | $ | 2,389 | $ | 2,077 | |||
Less than 660 | 76 | 95 | |||||
80% and greater and refreshed FICO scores (1): | |||||||
Equal to or greater than 660 | 132 | 78 | |||||
Less than 660 | 8 | 9 | |||||
U.S. government guaranteed | 60 | 68 | |||||
Total | $ | 2,665 | $ | 2,327 | |||
Geographic region | |||||||
California | $ | 1,059 | $ | 858 | |||
Michigan | 267 | 236 | |||||
Florida | 193 | 193 | |||||
Texas | 174 | 138 | |||||
Washington | 160 | 136 | |||||
Illinois | 97 | 84 | |||||
Arizona | 73 | 65 | |||||
New York | 72 | 68 | |||||
Colorado | 66 | 60 | |||||
Maryland | 65 | 59 | |||||
Others | 439 | 430 | |||||
Total | $ | 2,665 | $ | 2,327 |
2022 | 2021 | 2020 | 2019 | 2018 and Prior | Total | ||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Residential first mortgage loans | $ | 114 | $ | 352 | $ | 189 | $ | 257 | $ | 587 | $ | 1,499 | |||||||||||||||||||||||
Percent of total | 7.6 | % | 23.5 | % | 12.6 | % | 17.1 | % | 39.2 | % | 100.0 | % |
March 31, 2022 | December 31, 2021 | ||||||||||||||||
Balance | % of Portfolio | Balance | % of Portfolio | ||||||||||||||
(Dollars in millions) | |||||||||||||||||
Indirect lending | $ | 935 | 74 | % | $ | 926 | 75 | % | |||||||||
Point of sale | 295 | 23 | % | 272 | 22 | % | |||||||||||
Other | 37 | 3 | % | 38 | 3 | % | |||||||||||
Total other consumer loans | $ | 1,267 | 100 | % | $ | 1,236 | 100 | % |
MI | TX | CA | OH | FL | Other | Total | % by collateral type | |||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||
Home builder | $ | 27 | $ | 169 | $ | 100 | $ | — | $ | 186 | $ | 379 | $ | 861 | 26.6 | % | ||||||||||
Multi family | 209 | 44 | 66 | 50 | 22 | 77 | 468 | 14.4 | % | |||||||||||||||||
Owner occupied | 300 | 4 | 24 | 8 | — | 59 | 395 | 12.1 | % | |||||||||||||||||
Hotel | 159 | — | 26 | 30 | — | 180 | 395 | 12.1 | % | |||||||||||||||||
Retail (1) | 203 | — | 2 | 55 | 3 | 33 | 296 | 9.1 | % | |||||||||||||||||
Senior living facility | 122 | 24 | — | 68 | — | 56 | 270 | 8.3 | % | |||||||||||||||||
Office | 173 | — | 20 | 4 | — | 55 | 252 | 7.7 | % | |||||||||||||||||
Industrial | 55 | — | — | — | — | 21 | 76 | 2.3 | % | |||||||||||||||||
Parking garage/lot | 46 | — | — | — | — | 20 | 66 | 2.0 | % | |||||||||||||||||
Shopping Mall | — | — | 16 | — | — | — | 16 | 0.5 | % | |||||||||||||||||
Land-residential (2) | 5 | — | 7 | — | — | — | 12 | 0.4 | % | |||||||||||||||||
Single family residence (3) | 6 | — | — | — | — | 1 | 7 | 0.2 | % | |||||||||||||||||
All other (4) | 15 | 48 | — | 5 | — | 72 | 140 | 4.3 | % | |||||||||||||||||
Total | $ | 1,320 | $ | 289 | $ | 261 | $ | 220 | $ | 211 | $ | 953 | $ | 3,254 | 100.0 | % | ||||||||||
Percent by state | 40.6 | % | 8.9 | % | 8.0 | % | 6.8 | % | 6.5 | % | 29.2 | % | 100.0 | % |
MI | NY | FL | SC | CA | NJ | TX | OH | WI | IN | Other | Total | % by industry | |||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Financial & Insurance | $ | 27 | $ | 232 | $ | 47 | $ | 103 | $ | 22 | $ | 98 | $ | 43 | $ | 41 | $ | 22 | $ | — | $ | 82 | $ | 717 | 36.2 | % | |||||||||||||||
Services | 131 | 1 | 16 | — | 10 | 11 | — | 1 | — | 3 | 99 | 272 | 13.7 | % | |||||||||||||||||||||||||||
Manufacturing | 238 | 4 | — | — | — | — | — | — | 7 | — | 47 | 296 | 15.0 | % | |||||||||||||||||||||||||||
Home Builder Finance | — | — | 122 | 39 | 82 | — | 52 | — | — | — | 39 | 334 | 16.9 | % | |||||||||||||||||||||||||||
Rental & Leasing | 156 | 27 | 30 | — | — | — | — | — | — | 8 | 24 | 245 | 12.4 | % | |||||||||||||||||||||||||||
Distribution | 35 | — | — | — | 13 | — | — | 1 | — | 1 | 3 | 53 | 2.7 | % | |||||||||||||||||||||||||||
Healthcare | 3 | — | — | — | — | — | — | 18 | — | — | 12 | 33 | 1.7 | % | |||||||||||||||||||||||||||
Government & Education | 2 | — | — | — | 2 | — | — | — | — | — | 12 | 16 | 0.8 | % | |||||||||||||||||||||||||||
Commodities | — | — | — | — | 5 | — | — | — | — | 1 | 7 | 13 | 0.7 | % | |||||||||||||||||||||||||||
Total | $ | 591 | $ | 263 | $ | 214 | $ | 141 | $ | 133 | $ | 108 | $ | 94 | $ | 61 | $ | 29 | $ | 13 | $ | 325 | $ | 1,979 | 100.0 | % | |||||||||||||||
Percent by state | 30.0 | % | 13.0 | % | 11.0 | % | 7.0 | % | 7.0 | % | 6.0 | % | 5.0 | % | 3.0 | % | 1.0 | % | 1.0 | % | 16.0 | % | 100.0 | % |
Michigan | Texas | Florida | California | Tennessee | Other | Total | % by industry | |||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||
September 30, 2017 | ||||||||||||||||||||||||||||||
Industry Type | ||||||||||||||||||||||||||||||
Financial & Insurance | $ | 23 | $ | — | $ | 50 | $ | — | $ | 12 | $ | 228 | $ | 313 | 28.5 | % | ||||||||||||||
Services (1) | 71 | 73 | — | 34 | — | 114 | 292 | 26.6 | % | |||||||||||||||||||||
Manufacturing | 61 | 5 | — | 23 | — | 87 | 176 | 16.0 | % | |||||||||||||||||||||
Healthcare | 29 | 7 | 1 | 1 | 44 | 27 | 109 | 9.9 | % | |||||||||||||||||||||
Distribution | 57 | — | — | 2 | — | — | 59 | 5.4 | % | |||||||||||||||||||||
Servicing advances | — | — | 21 | — | — | 25 | 46 | 4.2 | % | |||||||||||||||||||||
Rental & leasing | 44 | — | — | — | — | 2 | 46 | 4.2 | % | |||||||||||||||||||||
Government & education | 9 | — | — | — | — | 36 | 45 | 4.1 | % | |||||||||||||||||||||
Commodities | 5 | — | — | — | — | 6 | 11 | 1.0 | % | |||||||||||||||||||||
Total | $ | 299 | $ | 85 | $ | 72 | $ | 60 | $ | 56 | $ | 525 | $ | 1,097 | 100.0 | % | ||||||||||||||
Percent by state | 27.3 | % | 7.7 | % | 6.6 | % | 5.5 | % | 5.1 | % | 47.9 | % | 100.0 | % |
Michigan | Florida | California | Colorado | Texas | Ohio | Other | Total (1) | ||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||||||||||
Collateral Type | |||||||||||||||||||||||||||||||
Single family residence (2) | $ | 54 | $ | 78 | $ | 28 | $ | 80 | $ | 81 | $ | — | $ | 51 | $ | 372 | |||||||||||||||
Retail (3) | 185 | 30 | 7 | — | — | 5 | 14 | 241 | |||||||||||||||||||||||
Apartments | 125 | 23 | — | 7 | — | 47 | 39 | 241 | |||||||||||||||||||||||
Industrial | 155 | — | 35 | — | — | — | 4 | 194 | |||||||||||||||||||||||
Office | 164 | — | 19 | — | — | — | — | 183 | |||||||||||||||||||||||
Land - Residential (4) | 11 | 21 | 32 | 24 | 11 | — | 31 | 130 | |||||||||||||||||||||||
Hotel/motel | 79 | — | — | — | — | — | 35 | 114 | |||||||||||||||||||||||
Senior Living facility | 50 | — | — | — | — | 12 | 10 | 72 | |||||||||||||||||||||||
Parking garage/Lot | 68 | — | — | — | — | — | — | 68 | |||||||||||||||||||||||
Non Profit | 37 | — | — | — | — | — | 10 | 47 | |||||||||||||||||||||||
Shopping Mall (5) | 27 | — | — | — | — | — | — | 27 | |||||||||||||||||||||||
Marina | 23 | — | — | — | — | — | — | 23 | |||||||||||||||||||||||
Movie Theater | 20 | — | — | — | — | — | — | 20 | |||||||||||||||||||||||
All other (6) | 21 | — | 1 | — | — | — | 6 | 28 | |||||||||||||||||||||||
Total | $ | 1,019 | $ | 152 | $ | 122 | $ | 111 | $ | 92 | $ | 64 | $ | 200 | $ | 1,760 | |||||||||||||||
Percent by state | 57.9 | % | 8.6 | % | 6.9 | % | 6.3 | % | 5.2 | % | 3.6 | % | 11.4 | % | 100.0 | % |
March 31, 2022 | December 31, 2021 | ||||||||||
(Dollars in millions) | |||||||||||
LHFI | |||||||||||
Residential first mortgage (1) | $ | 76 | $ | 38 | |||||||
Home equity | 7 | 7 | |||||||||
Other consumer | 3 | 4 | |||||||||
Commercial and industrial (2) | 9 | 32 | |||||||||
Total nonperforming LHFI | 95 | 81 | |||||||||
TDRs | |||||||||||
Residential first mortgage | 10 | 11 | |||||||||
Home equity | 2 | 2 | |||||||||
Total nonperforming TDRs | 12 | 13 | |||||||||
Total nonperforming LHFI and TDRs (2) | 107 | 94 | |||||||||
Real estate and other nonperforming assets, net | 4 | 6 | |||||||||
LHFS | 24 | 17 | |||||||||
Total nonperforming assets | $ | 135 | $ | 117 | |||||||
Nonperforming assets to total assets (3) | 0.48 | % | 0.39 | % | |||||||
Nonperforming LHFI and TDRs to LHFI | 0.80 | % | 0.70 | % | |||||||
Nonperforming assets to LHFI and repossessed assets (3) | 0.84 | % | 0.74 | % |
September 30, 2017 | December 31, 2016 | ||||||
(Dollars in millions) | |||||||
LHFI | |||||||
Consumer loans | |||||||
Residential first mortgage | $ | 14 | $ | 18 | |||
Home equity | 1 | 4 | |||||
Commercial | |||||||
CRE | 1 | — | |||||
Total nonperforming LHFI | 16 | 22 | |||||
TDRs | |||||||
Consumer loans | |||||||
Residential first mortgage | 11 | 11 | |||||
Home equity | 4 | 7 | |||||
Total nonperforming TDRs | 15 | 18 | |||||
Total nonperforming LHFI and TDRs (1) | 31 | 40 | |||||
Real estate and other nonperforming assets, net | 9 | 14 | |||||
LHFS | 8 | 6 | |||||
Total nonperforming assets | $ | 48 | $ | 60 | |||
Nonperforming assets to total assets (2) | 0.24 | % | 0.39 | % | |||
Nonperforming LHFI and TDRs to LHFI | 0.44 | % | 0.67 | % | |||
Net charge-offs to LHFI ratio (annualized) (1) | 0.08 | % | 0.13 | % | |||
Nonperforming assets to LHFI and repossessed assets (2) | 0.58 | % | 0.90 | % | |||
Nonperforming assets to Tier 1 capital (to adjusted total assets) + ALLL (2)(3) | 2.57 | % | 3.93 | % |
Three Months Ended, | |||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
(Dollars in millions) | |||||||||||
Beginning balance | $ | 93 | $ | 94 | |||||||
Additions | 54 | 10 | |||||||||
Reductions | — | — | |||||||||
Principal payments | (10) | (9) | |||||||||
Charge-offs | (25) | (1) | |||||||||
Return to performing status | (5) | (1) | |||||||||
Transfers to REO | — | — | |||||||||
Total nonperforming LHFI and TDRs (1) | $ | 107 | $ | 93 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Beginning balance | $ | 30 | $ | 44 | $ | 40 | $ | 66 | |||||||
Additions | 5 | 7 | 19 | 30 | |||||||||||
Reductions | |||||||||||||||
Principal payments and loan sales | (2 | ) | (2 | ) | (6 | ) | (9 | ) | |||||||
Charge-offs | — | — | (2 | ) | (4 | ) | |||||||||
Returned to performing status | (1 | ) | (8 | ) | (1 | ) | (15 | ) | |||||||
Transfers to REO | (1 | ) | (1 | ) | (19 | ) | (28 | ) | |||||||
Total nonperforming LHFI and TDRs (1) | $ | 31 | $ | 40 | $ | 31 | $ | 40 |
September 30, 2017 | December 31, 2016 | ||||||
(Dollars in millions) | |||||||
Performing loans past due 30-89: | |||||||
Consumer loans | |||||||
Residential first mortgage | $ | 3 | $ | 6 | |||
Home equity | 2 | 3 | |||||
Other | — | 1 | |||||
Total performing loans past due 30-89 days | $ | 5 | $ | 10 |
March 31, 2022 | December 31, 2021 | ||||||||||||||||
Amount | % of LHFI | Amount | % of LHFI | ||||||||||||||
(Dollars in millions) | |||||||||||||||||
Performing loans past due 30-89: | |||||||||||||||||
Consumer loans | |||||||||||||||||
Residential first mortgage | $ | 15 | 0.11 | % | $ | 48 | 0.36 | % | |||||||||
Home equity | 3 | 0.02 | % | 9 | 0.07 | % | |||||||||||
Other consumer | 4 | 0.03 | % | 5 | 0.04 | % | |||||||||||
Total consumer loans | 22 | 0.17 | % | 62 | 0.46 | % | |||||||||||
CRE | — | — | % | — | — | % | |||||||||||
C&I | — | — | % | — | — | % | |||||||||||
Total commercial loans | — | — | % | — | — | % | |||||||||||
Total performing loans past due 30-89 days | $ | 22 | 0.17 | % | $ | 62 | 0.46 | % |
As of March 31, 2022 | As of December 31, 2021 | ||||||||||||||||||||||
Number of Borrowers | UPB | Percent of Portfolio | Number of Borrowers | UPB | Percent of Portfolio | ||||||||||||||||||
(Dollars in millions, actual number of borrowers) | |||||||||||||||||||||||
Loans Held-For-Investment | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Residential first mortgage | 178 | $ | 32 | 2.1 | % | 212 | $ | 35 | 2.3 | % | |||||||||||||
Home equity | 41 | 5 | 0.8 | % | 48 | 5 | 0.8 | % | |||||||||||||||
Other consumer | 92 | 4 | 0.3 | % | 96 | 4 | 0.3 | % | |||||||||||||||
Total consumer loan deferrals/forbearance | 311 | $ | 41 | 1.2 | % | 356 | $ | 44 | 1.3 | % | |||||||||||||
Loans Held-For-Sale | |||||||||||||||||||||||
Residential first mortgage | 24 | $ | 8 | 0.2 | % | 47 | $ | 13 | 0.3 | % |
Total Population | Loans in Forbearance | |||||||||||||||||||||||||
Unpaid Principal Balance (1) | Number of accounts | Unpaid Principal Balance (1) | Number of accounts | Percent of UPB | Percent of Accounts | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Loan servicing | ||||||||||||||||||||||||||
Subserviced for others (2) | $ | 253,970 | 1,044,616 | $ | 2,512 | 11,338 | 1.0 | % | 1.1 | % | ||||||||||||||||
Serviced for others (3) | 39,107 | 151,035 | 350 | 1,366 | 0.9 | % | 0.9 | % | ||||||||||||||||||
Serviced for own loan portfolio (4) | 7,217 | 60,171 | 157 | 901 | 2.2 | % | 1.5 | % | ||||||||||||||||||
Total loans serviced | $ | 300,294 | 1,255,822 | $ | 3,019 | 13,605 | 1.0 | % | 1.1 | % |
Total Population | Loans in Forbearance | |||||||||||||||||||||||||
Unpaid Principal Balance (1) | Number of accounts | Unpaid Principal Balance (1) | Number of accounts | Percent of UPB | Percent of Accounts | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Loan servicing | ||||||||||||||||||||||||||
Subserviced for others (2) | $ | 247,081 | 1,033,711 | $ | 3,946 | 18,313 | 1.6 | % | 1.8 | % | ||||||||||||||||
Serviced for others (3) | 35,097 | 137,315 | 514 | 2,158 | 1.5 | % | 1.6 | % | ||||||||||||||||||
Serviced for own loan portfolio (4) | 8,645 | 63,039 | 220 | 1,158 | 2.5 | % | 1.8 | % | ||||||||||||||||||
Total loans serviced | $ | 290,823 | 1,234,065 | $ | 4,680 | 21,629 | 1.6 | % | 1.8 | % |
Principal and Interest | Taxes and Insurance | ||||||||||
Fannie Mae and Freddie Mac | 4 months | No time limit | |||||||||
GNMA | No time limit | No time limit |
March 31, 2022 | December 31, 2021 | ||||||||||
(Dollars in millions) | |||||||||||
Performing TDRs | |||||||||||
Consumer Loans | |||||||||||
Residential first mortgage | $ | 16 | $ | 14 | |||||||
Home equity | 7 | 8 | |||||||||
Total consumer loans | 23 | 22 | |||||||||
Commercial Loans | |||||||||||
Commercial real estate | — | — | |||||||||
Commercial and industrial | — | 2 | |||||||||
Total commercial loans | — | 2 | |||||||||
Total performing TDRs | 23 | 24 | |||||||||
Nonperforming TDRs | |||||||||||
Nonperforming TDRs | 7 | 8 | |||||||||
Nonperforming TDRs, performing for less than six months | 5 | 5 | |||||||||
Total nonperforming TDRs | 12 | 13 | |||||||||
Total TDRs | $ | 35 | $ | 37 |
September 30, 2017 | December 31, 2016 | ||||||
(Dollars in millions) | |||||||
Performing TDRs | |||||||
Residential first mortgage | $ | 20 | $ | 22 | |||
Home equity | 26 | 45 | |||||
Total performing TDRs | 46 | 67 | |||||
Nonperforming TDRs | 4 | 8 | |||||
Nonperforming TDRs at inception but performing for less than six months | 11 | 10 | |||||
Total nonperforming TDRs | 15 | 18 | |||||
Total TDRs (1) | $ | 61 | $ | 85 |
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||
Residential First Mortgage (1) | Home Equity | Other Consumer | Commercial Real Estate | Commercial and Industrial | Warehouse Lending | Total LHFI Portfolio (2) | Unfunded Commitments | Total ACL | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Beginning allowance balance | $ | 40 | $ | 14 | $ | 36 | $ | 28 | $ | 32 | $ | 4 | $ | 154 | $ | 16 | $ | 170 | |||||||||||
Provision (benefit) for credit losses: | |||||||||||||||||||||||||||||
Loan volume | — | — | 1 | — | 3 | — | 4 | (2) | 2 | ||||||||||||||||||||
Economic forecast (3) | 1 | 2 | — | 1 | (2) | — | 2 | — | 2 | ||||||||||||||||||||
Credit (4) | 2 | — | (3) | (6) | 2 | (1) | (6) | — | (6) | ||||||||||||||||||||
Qualitative factor adjustments | — | — | — | (1) | (4) | — | (5) | — | (5) | ||||||||||||||||||||
Charge-offs | (1) | — | (2) | — | (20) | — | (23) | — | (23) | ||||||||||||||||||||
Recoveries | — | 1 | 1 | — | — | — | 2 | — | 2 | ||||||||||||||||||||
Provision for charge-offs | 1 | (1) | 1 | — | 2 | — | 3 | — | 3 | ||||||||||||||||||||
Ending allowance balance | $ | 43 | $ | 16 | $ | 34 | $ | 22 | $ | 13 | $ | 3 | $ | 131 | $ | 14 | $ | 145 |
September 30, 2017 | |||||||||||||
Loans Held-for-Investment | Percent of Portfolio | Allowance Amount | Allowance as a Percent of Loan Portfolio | ||||||||||
(Dollars in millions) | |||||||||||||
Consumer loans | |||||||||||||
Residential first mortgage | $ | 2,656 | 36.9 | % | $ | 52 | 2.0 | % | |||||
Home equity | 492 | 6.8 | % | 20 | 4.1 | % | |||||||
Other | 26 | 0.4 | % | 1 | 3.8 | % | |||||||
Total consumer loans | 3,174 | 44.1 | % | 73 | 2.3 | % | |||||||
Commercial loans | |||||||||||||
Commercial real estate | 1,760 | 24.5 | % | 42 | 2.4 | % | |||||||
Commercial and industrial | 1,097 | 15.3 | % | 19 | 1.7 | % | |||||||
Warehouse lending | 1,159 | 16.1 | % | 6 | 0.5 | % | |||||||
Total commercial loans | 4,016 | 55.9 | % | 67 | 1.7 | % | |||||||
Total consumer and commercial loans (1) | $ | 7,190 | 100.0 | % | $ | 140 | 1.9 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Beginning balance | $ | 140 | $ | 150 | $ | 142 | $ | 187 | |||||||
Provision (benefit) for loan losses (1) | 2 | — | 4 | (16 | ) | ||||||||||
Charge-offs | |||||||||||||||
Consumer loans | |||||||||||||||
Residential first mortgage | (1 | ) | (7 | ) | (6 | ) | (26 | ) | |||||||
Home equity | (2 | ) | (1 | ) | (3 | ) | (4 | ) | |||||||
Other consumer | — | (1 | ) | (1 | ) | (3 | ) | ||||||||
Total charge offs | (3 | ) | (9 | ) | (10 | ) | (33 | ) | |||||||
Recoveries | |||||||||||||||
Consumer loans | |||||||||||||||
Residential first mortgage | — | — | 1 | 1 | |||||||||||
Home equity | 1 | 1 | 2 | 2 | |||||||||||
Other consumer | — | 1 | 1 | 2 | |||||||||||
Total recoveries | 1 | 2 | 4 | 5 | |||||||||||
Charge-offs, net of recoveries | (2 | ) | (7 | ) | (6 | ) | (28 | ) | |||||||
Ending balance | $ | 140 | $ | 143 | $ | 140 | $ | 143 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Charge-offs, net of recoveries | $ | 2 | $ | 7 | $ | (5 | ) | $ | 6 | $ | 28 | $ | (22 | ) | |||||||||
Charge-offs associated with loans with government guarantees | 1 | 6 | (5 | ) | 3 | 13 | (10 | ) | |||||||||||||||
Charge-offs associated with the sale or transfer of nonperforming loans and TDRs | — | — | — | 1 | 8 | (7 | ) | ||||||||||||||||
Charge-offs, net of recoveries, adjusted (1) | $ | 1 | $ | 1 | $ | — | $ | 2 | $ | 7 | $ | (5 | ) | ||||||||||
Net charge-offs to LHFI ratio (annualized) (2) | 0.08 | % | 0.51 | % | (0.43 | )% | 0.12 | % | 0.66 | % | (0.54 | )% | |||||||||||
Net charge-off ratio, adjusted (annualized)(1)(2) | 0.06 | % | 0.15 | % | (0.09 | )% | 0.05 | % | 0.15 | % | (0.10 | )% |
March 31, 2022 | |||||||||||||||||
LHFI Portfolio (1) | Percent of Portfolio | Allowance Amount (2) | Allowance as a Percent of Loan Portfolio | Weighted Average Loan Life (in years) | |||||||||||||
(Dollars in millions) | |||||||||||||||||
Consumer loans | |||||||||||||||||
Residential first mortgage | $ | 1,479 | 11.2 | % | $ | 43 | 2.9 | % | 5 | ||||||||
Home equity | 595 | 4.5 | % | 16 | 2.7 | % | 3 | ||||||||||
Other consumer | 1,267 | 9.6 | % | 35 | 2.8 | % | 3 | ||||||||||
Total consumer loans | 3,341 | 25.3 | % | 94 | 2.8 | % | |||||||||||
Commercial loans | |||||||||||||||||
Commercial real estate | $ | 3,254 | 24.6 | % | $ | 28 | 0.9 | % | 2 | ||||||||
Commercial and industrial | 1,979 | 15.0 | % | 19 | 1.0 | % | 2 | ||||||||||
Warehouse lending | 4,641 | 35.1 | % | 4 | 0.1 | % | — | ||||||||||
Total commercial loans | 9,874 | 74.7 | % | 51 | 0.5 | % | |||||||||||
Total consumer and commercial loans | $ | 13,215 | 100.0 | % | $ | 145 | 1.1 | % | |||||||||
Total consumer and commercial loans excluding warehouse | $ | 8,574 | 64.9 | % | $ | 141 | 1.6 | % |
December 31, 2021 | |||||||||||||||||
LHFI Portfolio (1) | Percent of Portfolio | Allowance Amount (2) | Allowance as a Percent of Loan Portfolio | Weighted Average Loan Life (in years) | |||||||||||||
(Dollars in millions) | |||||||||||||||||
Consumer loans | |||||||||||||||||
Residential first mortgage | $ | 1,521 | 11.4 | % | $ | 40 | 2.6 | % | 5 | ||||||||
Home equity | 611 | 4.6 | % | 14 | 2.3 | % | 3 | ||||||||||
Other consumer | 1,236 | 9.2 | % | 37 | 3.0 | % | 3 | ||||||||||
Total consumer loans | 3,368 | 25.2 | % | 91 | 2.7 | % | |||||||||||
Commercial loans | |||||||||||||||||
Commercial real estate | $ | 3,223 | 24.1 | % | $ | 38 | 1.2 | % | 1 | ||||||||
Commercial and industrial | 1,826 | 13.6 | % | 36 | 2.0 | % | 2 | ||||||||||
Warehouse lending | 4,974 | 37.1 | % | 5 | 0.1 | % | — | ||||||||||
Total commercial loans | 10,023 | 74.8 | % | 79 | 0.8 | % | |||||||||||
Total consumer and commercial loans | $ | 13,391 | 100.0 | % | $ | 170 | 1.3 | % | |||||||||
Total consumer and commercial loans excluding warehouse | $ | 8,417 | 62.9 | % | $ | 165 | 2.0 | % |
March 31, 2022 | |||||||||||||||||||||||||||||||||||
Scenario | Net interest income | $ Change | % Change | ||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
100 | $846 | $40 | 5.1% | ||||||||||||||||||||||||||||||||
Constant | 806 | — | —% | ||||||||||||||||||||||||||||||||
(100) | 738 | (68) | (8.3)% | ||||||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Scenario | Net interest income | $ Change | % Change | ||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
100 | $882 | $122 | 16.1% | ||||||||||||||||||||||||||||||||
Constant | 760 | — | —% | ||||||||||||||||||||||||||||||||
(100) | 695 | (65) | (8.5)% |
September 30, 2017 | |||||||||||
Scenario | Net interest income | $ Change | % Change | ||||||||
(Dollars in millions) | |||||||||||
200 | $ | 458 | $ | 25 | 5.9 | % | |||||
Constant | 433 | — | — | % | |||||||
(200) | 373 | (60 | ) | (14.0 | )% | ||||||
December 31, 2016 | |||||||||||
Scenario | Net interest income | $ Change | % Change | ||||||||
(Dollars in millions) | |||||||||||
200 | $ | 321 | $ | 19 | 6.3 | % | |||||
Constant | 301 | — | — | % | |||||||
(200) | 245 | (57 | ) | (18.9 | )% |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
Scenario | EVE | EVE % | $ Change | % Change | Scenario | EVE | EVE % | $ Change | % Change | Policy Limits for % Change | ||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||||||||
300 | $ | 4,878 | 21.5 | % | $ | 803 | 19.7 | % | 300 | $ | 4,579 | 18.2 | % | $ | 1,042 | 29.5 | % | (22.5) | % | |||||||||||||||||||
200 | 4,678 | 20.6 | % | 603 | 14.8 | % | 200 | 4,232 | 16.8 | % | 695 | 19.6 | % | (15.0) | % | |||||||||||||||||||||||
100 | 4,400 | 19.4 | % | 325 | 8.0 | % | 100 | 3,939 | 15.6 | % | 402 | 11.4 | % | (7.5) | % | |||||||||||||||||||||||
Current | 4,075 | 18.0 | % | — | — | % | Current | 3,537 | 14.0 | % | — | — | % | — | % | |||||||||||||||||||||||
(100) | N/M | N/M | N/M | N/M | (100) | N/M | N/M | N/M | N/M | 7.5 | % |
September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||
Scenario | EVE | EVE% | $ Change | % Change | Scenario | EVE | EVE% | $ Change | % Change | |||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | |||||||||||||||||||||||||||||
300 | $ | 2,109 | 12.6 | % | $ | (155 | ) | (6.9 | )% | 300 | $ | 1,927 | 13.9 | % | $ | (173 | ) | (8.2 | )% | |||||||||||
200 | 2,185 | 13.0 | % | (79 | ) | (3.5 | )% | 200 | 2,005 | 14.4 | % | (95 | ) | (4.5 | )% | |||||||||||||||
100 | 2,250 | 13.4 | % | (14 | ) | (0.6 | )% | 100 | 2,073 | 14.9 | % | (28 | ) | (1.3 | )% | |||||||||||||||
Current | 2,264 | 13.5 | % | — | — | % | Current | 2,100 | 15.1 | % | — | — | % | |||||||||||||||||
(100) | 2,233 | 13.3 | % | (31 | ) | (1.4 | )% | (100) | 2,067 | 14.9 | % | (33 | ) | (1.6 | )% |
September 30, 2017 | December 31, 2016 | Change | |||||||||
(Dollars in millions) | |||||||||||
Demand deposit accounts | $ | 1,234 | $ | 1,134 | $ | 100 | |||||
Savings accounts | 3,718 | 3,887 | (169 | ) | |||||||
Money market demand accounts | 291 | 247 | 44 | ||||||||
Certificates of deposit/CDARS | 1,297 | 1,056 | 241 | ||||||||
Total retail deposits | 6,540 | 6,324 | 216 | ||||||||
Government deposits | 1,068 | 1,030 | 38 | ||||||||
Wholesale deposits | 43 | — | 43 | ||||||||
Company controlled deposits | 1,510 | 1,446 | 64 | ||||||||
Total deposits | $ | 9,161 | $ | 8,800 | $ | 361 | |||||
Federal Home Loan Bank advances | $ | 5,365 | $ | 2,980 | $ | 2,385 | |||||
Other long-term debt | 493 | 493 | — | ||||||||
Total borrowed funds | $ | 5,858 | $ | 3,473 | $ | 2,385 |
March 31, 2022 | December 31, 2021 | Change | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Retail deposits | $ | 10,175 | $ | 10,264 | $ | (89) | |||||||||||
Government deposits | 1,886 | 2,000 | (114) | ||||||||||||||
Wholesale deposits | 974 | 1,141 | (167) | ||||||||||||||
Custodial deposits | 4,313 | 4,604 | (291) | ||||||||||||||
Total deposits | 17,348 | 18,009 | (661) | ||||||||||||||
FHLB advances and other short-term debt | 1,400 | 3,280 | (1,880) | ||||||||||||||
Other long-term debt | 396 | 396 | — | ||||||||||||||
Total borrowed funds | 1,796 | 3,676 | (1,880) | ||||||||||||||
Total funding | $ | 19,144 | $ | 21,685 | $ | (2,541) |
March 31, 2022 | December 31, 2021 | Change | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
FLHB Borrowing capacity | |||||||||||||||||
Line of credit available | $ | 30 | $ | 30 | $ | — | |||||||||||
Collateralized borrowing capacity | 3,182 | 3,792 | (610) | ||||||||||||||
Total unused borrowing capacity | $ | 3,212 | $ | 3,822 | $ | (610) | |||||||||||
FRB discount window | |||||||||||||||||
Collateralized borrowing capacity | $ | 1,724 | $ | 1,666 | $ | 58 | |||||||||||
Unencumbered investment securities | |||||||||||||||||
Agency - Commercial (1) | $ | 995 | $ | 123 | $ | 872 | |||||||||||
Agency - Residential (1) | 543 | 55 | 488 | ||||||||||||||
Municipal obligations | 17 | 18 | (1) | ||||||||||||||
Corporate debt obligations | 53 | 54 | (1) | ||||||||||||||
Other | 1 | 1 | — | ||||||||||||||
Total unencumbered investment securities | 1,609 | 251 | 1,358 | ||||||||||||||
Total liquidity sources and borrowing capacity | $ | 6,545 | $ | 5,739 | $ | 806 |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
Balance | % of Deposits | Balance | % of Deposits | Change | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Retail deposits | |||||||||||||||||||||||
Branch retail deposits | |||||||||||||||||||||||
Savings accounts | $ | 3,814 | 22.0 | % | $ | 3,751 | 20.8 | % | $ | 63 | |||||||||||||
Certificates of deposit/CDARS (1) | 898 | 5.2 | % | 951 | 5.3 | % | (53) | ||||||||||||||||
Demand deposit accounts | 1,962 | 11.3 | % | 1,946 | 10.8 | % | 16 | ||||||||||||||||
Money market demand accounts | 497 | 2.9 | % | 494 | 2.7 | % | 3 | ||||||||||||||||
Total branch retail deposits | 7,171 | 41.3 | % | 7,142 | 39.7 | % | 29 | ||||||||||||||||
Commercial deposits (2) | |||||||||||||||||||||||
Demand deposit accounts | 2,106 | 12.1 | % | 2,194 | 12.2 | % | (88) | ||||||||||||||||
Savings accounts | 496 | 2.9 | % | 520 | 2.9 | % | (24) | ||||||||||||||||
Money market demand accounts | 402 | 2.3 | % | 408 | 2.3 | % | (6) | ||||||||||||||||
Total commercial retail deposits | 3,004 | 17.3 | % | 3,122 | 17.3 | % | (118) | ||||||||||||||||
Total retail deposits | $ | 10,175 | 58.7 | % | $ | 10,264 | 57.0 | % | $ | (89) | |||||||||||||
Government deposits | |||||||||||||||||||||||
Savings accounts | $ | 743 | 4.3 | % | $ | 721 | 4.0 | % | $ | 22 | |||||||||||||
Demand deposit accounts | 584 | 3.4 | % | 664 | 3.7 | % | (80) | ||||||||||||||||
Certificates of deposit/CDARS (1) | 554 | 3.2 | % | 609 | 3.4 | % | (55) | ||||||||||||||||
Money market demand accounts | 5 | — | % | 6 | — | % | (1) | ||||||||||||||||
Total government deposits | 1,886 | 10.9 | % | 2,000 | 11.1 | % | (114) | ||||||||||||||||
Custodial deposits (3) | 4,313 | 24.9 | % | 4,604 | 25.6 | % | (291) | ||||||||||||||||
Wholesale deposits | 974 | 5.6 | % | 1,141 | 6.3 | % | (167) | ||||||||||||||||
Total deposits (4) | $ | 17,348 | 100.0 | % | $ | 18,009 | 100.0 | % | $ | (661) |
September 30, 2017 | December 31, 2016 | ||||||||||||||||
Balance | % of Deposits | Balance | % of Deposits | Change | |||||||||||||
(Dollars in millions) | |||||||||||||||||
Retail deposits | |||||||||||||||||
Branch retail deposits | |||||||||||||||||
Demand deposit accounts | $ | 930 | 10.2 | % | $ | 852 | 9.7 | % | $ | 78 | |||||||
Savings accounts | 3,653 | 39.9 | % | 3,824 | 43.5 | % | (171 | ) | |||||||||
Money market demand accounts | 214 | 2.3 | % | 138 | 1.6 | % | 76 | ||||||||||
Certificates of deposit/CDARS (1) | 1,295 | 14.1 | % | 1,055 | 12.0 | % | 240 | ||||||||||
Total branch retail deposits | 6,092 | 66.5 | % | 5,869 | 66.7 | % | 223 | ||||||||||
Commercial retail deposits | |||||||||||||||||
Demand deposit accounts | 304 | 3.3 | % | 282 | 3.2 | % | 22 | ||||||||||
Savings accounts | 65 | 0.7 | % | 63 | 0.7 | % | 2 | ||||||||||
Money market demand accounts | 77 | 0.8 | % | 109 | 1.2 | % | (32 | ) | |||||||||
Certificates of deposit/CDARS (1) | 2 | — | % | 1 | — | % | 1 | ||||||||||
Total commercial retail deposits | 448 | 4.9 | % | 455 | 5.2 | % | (7 | ) | |||||||||
Total retail deposits | $ | 6,540 | 71.4 | % | $ | 6,324 | 71.9 | % | $ | 216 | |||||||
Government deposits | |||||||||||||||||
Demand deposit accounts | $ | 272 | 3.0 | % | $ | 250 | 2.8 | % | $ | 22 | |||||||
Savings accounts | 414 | 4.5 | % | 451 | 5.1 | % | (37 | ) | |||||||||
Certificates of deposit/CDARS (1) | 382 | 4.2 | % | 329 | 3.7 | % | 53 | ||||||||||
Total government deposits (2) | 1,068 | 11.7 | % | 1,030 | 11.7 | % | 38 | ||||||||||
Wholesale deposits | 43 | 0.5 | % | — | — | % | — | ||||||||||
Company controlled deposits (3) | 1,510 | 16.5 | % | 1,446 | 16.4 | % | 64 | ||||||||||
Total deposits (4) | $ | 9,161 | 100.0 | % | $ | 8,800 | 100.0 | % | $ | 361 |
September 30, 2017 | December 31, 2016 | ||||||||||||
Amount | Ratio | Amount | Ratio | ||||||||||
(Dollars in millions) | |||||||||||||
Bancorp | |||||||||||||
Tier 1 leverage (to adjusted avg. total assets) | $ | 1,423 | 8.80 | % | $ | 1,256 | 8.88 | % | |||||
Total adjusted avg. total asset base (1) | 16,165 | 14,149 | |||||||||||
Tier 1 capital (to RWA) | $ | 1,423 | 13.72 | % | $ | 1,256 | 15.12 | % | |||||
Common equity Tier 1 (to RWA) | 1,208 | 11.65 | % | 1,084 | 13.06 | % | |||||||
Total capital (to RWA) | 1,554 | 14.99 | % | 1,363 | 16.41 | % | |||||||
Risk-weighted asset base (1) | $ | 10,371 | $ | 8,305 |
September 30, 2017 | December 31, 2016 | ||||||||||||
Amount | Ratio | Amount | Ratio | ||||||||||
(Dollars in millions) | |||||||||||||
Bank | |||||||||||||
Tier 1 leverage (to adjusted avg. total assets) | $ | 1,519 | 9.38 | % | $ | 1,491 | 10.52 | % | |||||
Total adjusted avg. total asset base (1) | 16,191 | 14,177 | |||||||||||
Tier 1 capital (to RWA) | $ | 1,519 | 14.61 | % | $ | 1,491 | 17.90 | % | |||||
Common equity Tier 1 (to RWA) | 1,519 | 14.61 | % | 1,491 | 17.90 | % | |||||||
Total capital (to RWA) | 1,651 | 15.88 | % | 1,598 | 19.18 | % | |||||||
Risk-weighted asset base (1) | $ | 10,396 | $ | 8,332 |
Regulatory Minimums | Regulatory Minimums to be Well-Capitalized | Bank | Bancorp | ||||||||
September 30, 2017 | |||||||||||
Basel III Ratios (transitional) | |||||||||||
Common equity Tier I capital ratio | 4.50 | % | 6.50 | % | 14.61 | % | 11.65 | % | |||
Tier I leverage ratio | 4.00 | % | 5.00 | % | 9.38 | % | 8.80 | % | |||
Basel III Ratios (fully phased-in) (1) | |||||||||||
Common equity Tier I capital ratio | 4.50 | % | 6.50 | % | 13.80 | % | 10.58 | % | |||
Tier I leverage ratio | 4.00 | % | 5.00 | % | 9.13 | % | 8.43 | % |
Flagstar Bancorp | Actual | Well-Capitalized Under Prompt Corrective Action Provisions | Excess Capital Over Well-Capitalized Minimum | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Capital Simplification | |||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||
Tier 1 leverage capital (to adjusted avg. total assets) | 2,843 | 11.83 | % | 1,201 | 5.0 | % | $ | 1,642 | |||||||||||||||
Common equity Tier 1 capital (to RWA) | 2,603 | 13.89 | % | 1,218 | 6.5 | % | 1,385 | ||||||||||||||||
Tier 1 capital (to RWA) | 2,843 | 15.17 | % | 1,499 | 8.0 | % | 1,344 | ||||||||||||||||
Total capital (to RWA) | 3,110 | 16.59 | % | 1,874 | 10.0 | % | 1,236 |
September 30, 2017 | December 31, 2016 | ||||||
(Dollars in millions) | |||||||
Nonperforming assets | $ | 40 | $ | 54 | |||
Tier 1 capital (to adjusted total assets) | 1,423 | 1,256 | |||||
Allowance for loan losses | 140 | 142 | |||||
Tier 1 capital + ALLL | $ | 1,563 | $ | 1,398 | |||
Nonperforming assets / Tier 1 capital + ALLL | 2.6 | % | 3.9 | % |
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Total stockholders' equity | $ | 2,733 | $ | 2,718 | $ | 2,358 | |||||||||||
Less: Goodwill and intangible assets | 145 | 147 | 155 | ||||||||||||||
Tangible book value/Tangible common equity | $ | 2,588 | $ | 2,571 | $ | 2,203 | |||||||||||
Number of common shares outstanding | 53,236,067 | 53,197,650 | 52,752,600 | ||||||||||||||
Tangible book value per share | $ | 48.61 | $ | 48.33 | $ | 41.77 | |||||||||||
Three Months Ended, | |||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||
(Dollars in millions, except share data) | |||||||||||
Net income | $ | 53 | $ | 85 | $ | 149 | |||||
Plus: Intangible asset amortization, net of tax | 1 | 2 | 2 | ||||||||
Tangible net income | $ | 54 | $ | 87 | $ | 151 | |||||
Total average equity | $ | 2,687 | $ | 2,692 | $ | 2,319 | |||||
Less: Average goodwill and intangible assets | 146 | 148 | 156 | ||||||||
Total average tangible equity | $ | 2,541 | $ | 2,544 | $ | 2,163 | |||||
Return on average tangible common equity | 8.61 | % | 13.79 | % | 27.99 | % | |||||
Adjustment to remove DOJ settlement expense | — | % | — | % | 4.98 | % | |||||
Adjustment for merger costs | 0.49 | % | 1.11 | % | — | % | |||||
Adjusted return on average tangible common equity | 9.10 | % | 14.90 | % | 32.97 | % | |||||
Return on average assets | 0.89 | % | 1.28 | % | 1.98 | % | |||||
Adjustment to remove DOJ | — | % | — | % | 0.36 | % | |||||
Adjustment for merger costs | 0.03 | % | 0.07 | % | — | % | |||||
Adjusted return on average assets | 0.92 | % | 1.35 | % | 2.34 | % |
September 30, 2017 | December 31, 2016 | September 30, 2016 | |||||||||
(Dollars in millions, except share data) | |||||||||||
Total stock holders' equity | $ | 1,451 | $ | 1,336 | $ | 1,286 | |||||
Preferred stock | — | — | — | ||||||||
Goodwill and intangibles | 21 | — | — | ||||||||
Tangible book value | $ | 1,430 | $ | 1,336 | $ | 1,286 | |||||
Number of common shares outstanding | 57,181,536 | 56,824,802 | 56,597,271 | ||||||||
Tangible book value per share | $ | 25.01 | $ | 23.50 | $ | 22.72 |
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Average LHFI | $ | 12,384 | $ | 13,314 | $ | 14,915 | |||||||||||
Less: Average warehouse loans | 3,973 | 5,148 | 6,395 | ||||||||||||||
Adjusted average LHFI | $ | 8,411 | $ | 8,166 | $ | 8,520 | |||||||||||
Average deposits | $ | 18,089 | $ | 19,816 | $ | 20,043 | |||||||||||
Less: Average custodial deposits | 4,970 | 6,309 | 7,194 | ||||||||||||||
Adjusted average deposits | $ | 13,119 | $ | 13,507 | $ | 12,849 | |||||||||||
HFI loan-to-deposit ratio | 68.5 | % | 67.2 | % | 74.4 | % | |||||||||||
Adjusted HFI loan-to-deposit ratio | 64.1 | % | 60.5 | % | 66.3 | % |
Three Months Ended, | |||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||
(Dollars in millions) | |||||||||||
Noninterest expense | $ | 261 | $ | 291 | $ | 347 | |||||
Adjustment to remove DOJ settlement expense | — | — | 35 | ||||||||
Adjustment for merger costs | 3 | 6 | — | ||||||||
Adjusted noninterest expense | $ | 258 | $ | 285 | $ | 312 | |||||
Income before income taxes | $ | 68 | $ | 109 | $ | 194 | |||||
Adjustment to remove DOJ settlement expense | — | — | 35 | ||||||||
Adjustment for merger costs | 3 | 6 | — | ||||||||
Adjusted income before income taxes | $ | 71 | $ | 115 | $ | 229 | |||||
Provision for income taxes | $ | 15 | $ | 24 | $ | 45 | |||||
Adjustment to remove DOJ settlement expense | — | — | (8) | ||||||||
Adjustment for merger costs | (1) | (1) | — | ||||||||
Adjusted provision for income taxes | $ | 16 | $ | 25 | $ | 53 | |||||
Net income | $ | 53 | $ | 85 | $ | 149 | |||||
Adjusted net income | $ | 55 | $ | 90 | $ | 176 | |||||
Weighted average common shares outstanding | 53,219,866 | 52,867,138 | 52,675,562 | ||||||||
Weighted average diluted common shares | 53,578,001 | 53,577,832 | 53,297,803 | ||||||||
Adjusted basic earnings per share | $ | 1.03 | $ | 1.71 | $ | 3.34 | |||||
Adjusted diluted earnings per share | $ | 1.02 | $ | 1.69 | $ | 3.31 | |||||
Average interest earning assets | $ | 21,569 | $ | 24,291 | $ | 27,178 | |||||
Net interest margin | 3.11 | % | 2.96 | % | 2.82 | % | |||||
Adjustment for LGG loans available for repurchase | 0.01 | % | 0.02 | % | 0.20 | % | |||||
Adjusted net interest margin | 3.12 | % | 2.98 | % | 3.02 | % | |||||
Efficiency Ratio | 80.37 | % | 75.86 | % | 67.67 | % | |||||
Adjustment to remove DOJ settlement expense | — | % | — | % | (6.83) | % | |||||
Adjustment for merger costs | (0.79) | % | (1.51) | % | — | % | |||||
Adjusted efficiency ratio | 79.58 | % | 74.35 | % | 60.84 | % |
Common Equity Tier 1 (to RWA) | Tier 1 leverage (to adjusted avg. total assets) | Tier 1 Capital (to RWA) | Total Risk-Based Capital (to RWA) | ||||||||||||
(Dollars in millions) | |||||||||||||||
September 30, 2017 | |||||||||||||||
Flagstar Bancorp | |||||||||||||||
Regulatory capital – Basel III (transitional) to Basel III (fully phased-in) | |||||||||||||||
Basel III (transitional) | $ | 1,208 | $ | 1,423 | $ | 1,423 | $ | 1,554 | |||||||
Increased deductions related to deferred tax assets, MSRs, and other capital components | (90 | ) | (65 | ) | (65 | ) | (62 | ) | |||||||
Basel III (fully phased-in) capital | $ | 1,118 | $ | 1,358 | $ | 1,358 | $ | 1,492 | |||||||
Risk-weighted assets – Basel III (transitional) to Basel III (fully phased-in) | |||||||||||||||
Basel III assets (transitional) | $ | 10,371 | $ | 16,165 | $ | 10,371 | $ | 10,371 | |||||||
Net change in assets | 191 | (65 | ) | 191 | 191 | ||||||||||
Basel III (fully phased-in) assets | $ | 10,562 | $ | 16,100 | $ | 10,562 | $ | 10,562 | |||||||
Capital ratios | |||||||||||||||
Basel III (transitional) | 11.65 | % | 8.80 | % | 13.72 | % | 14.99 | % | |||||||
Basel III (fully phased-in) | 10.58 | % | 8.43 | % | 12.86 | % | 14.13 | % |
Common Equity Tier 1 (to RWA) | Tier 1 leverage (to adjusted avg. total assets) | Tier 1 Capital (to RWA) | Total Risk-Based Capital (to RWA) | ||||||||||||
(Dollars in millions) | |||||||||||||||
September 30, 2017 | |||||||||||||||
Flagstar Bank | |||||||||||||||
Regulatory capital – Basel III (transitional) to Basel III (fully phased-in) | |||||||||||||||
Basel III (transitional) | $ | 1,519 | $ | 1,519 | $ | 1,519 | $ | 1,651 | |||||||
Increased deductions related to deferred tax assets, MSRs, and other capital components | (44 | ) | (44 | ) | (44 | ) | (41 | ) | |||||||
Basel III (fully phased-in) capital | $ | 1,475 | $ | 1,475 | $ | 1,475 | $ | 1,610 | |||||||
Risk-weighted assets – Basel III (transitional) to Basel III (fully phased-in) | |||||||||||||||
Basel III assets (transitional) | $ | 10,396 | $ | 16,191 | $ | 10,396 | $ | 10,396 | |||||||
Net change in assets | 293 | (45 | ) | 293 | 293 | ||||||||||
Basel III (fully phased-in) assets | $ | 10,689 | $ | 16,146 | $ | 10,689 | $ | 10,689 | |||||||
Capital ratios | |||||||||||||||
Basel III (transitional) | 14.61 | % | 9.38 | % | 14.61 | % | 15.88 | % | |||||||
Basel III (fully phased-in) | 13.80 | % | 9.13 | % | 13.80 | % | 15.06 | % |
September 30, 2017 | December 31, 2016 | March 31, 2022 | December 31, 2021 | |||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
Assets | Assets | |||||||||||||||||
Cash | $ | 88 | $ | 84 | Cash | $ | 174 | $ | 277 | |||||||||
Interest-earning deposits | 145 | 74 | Interest-earning deposits | 231 | 774 | |||||||||||||
Total cash and cash equivalents | 233 | 158 | Total cash and cash equivalents | 405 | 1,051 | |||||||||||||
Investment securities available-for-sale | 1,637 | 1,480 | Investment securities available-for-sale | 2,010 | 1,804 | |||||||||||||
Investment securities held-to-maturity | 977 | 1,093 | Investment securities held-to-maturity | 190 | 205 | |||||||||||||
Loans held-for-sale ($4,907 and $3,145 measured at fair value, respectively) | 4,939 | 3,177 | ||||||||||||||||
Loans held-for-investment ($13 and $72 measured at fair value, respectively) | 7,203 | 6,065 | ||||||||||||||||
Loans held-for-sale ($3,154 and $4,920 measured at fair value, respectively) | Loans held-for-sale ($3,154 and $4,920 measured at fair value, respectively) | 3,475 | 5,054 | |||||||||||||||
Loans held-for-investment ($21 and $16 measured at fair value, respectively) | Loans held-for-investment ($21 and $16 measured at fair value, respectively) | 13,236 | 13,408 | |||||||||||||||
Loans with government guarantees | 253 | 365 | Loans with government guarantees | 1,256 | 1,650 | |||||||||||||
Less: allowance for loan losses | (140 | ) | (142 | ) | Less: allowance for loan losses | (131) | (154) | |||||||||||
Total loans held-for-investment and loans with government guarantees, net | 7,316 | 6,288 | Total loans held-for-investment and loans with government guarantees, net | 14,361 | 14,904 | |||||||||||||
Mortgage servicing rights | 246 | 335 | Mortgage servicing rights | 523 | 392 | |||||||||||||
Net deferred tax asset | 248 | 286 | ||||||||||||||||
Federal Home Loan Bank stock | 264 | 180 | Federal Home Loan Bank stock | 329 | 377 | |||||||||||||
Premises and equipment, net | 314 | 275 | Premises and equipment, net | 354 | 360 | |||||||||||||
Goodwill and intangible assets | Goodwill and intangible assets | 145 | 147 | |||||||||||||||
Bank-owned life insurance | Bank-owned life insurance | 367 | 365 | |||||||||||||||
Other assets | 706 | 781 | Other assets | 1,085 | 824 | |||||||||||||
Total assets | $ | 16,880 | $ | 14,053 | Total assets | $ | 23,244 | $ | 25,483 | |||||||||
Liabilities and Stockholders’ Equity | Liabilities and Stockholders’ Equity | |||||||||||||||||
Noninterest bearing deposits | $ | 2,272 | $ | 2,077 | Noninterest bearing deposits | $ | 6,827 | $ | 7,088 | |||||||||
Interest bearing deposits | 6,889 | 6,723 | Interest bearing deposits | 10,521 | 10,921 | |||||||||||||
Total deposits | 9,161 | 8,800 | Total deposits | 17,348 | 18,009 | |||||||||||||
Short-term Federal Home Loan Bank advances | 4,065 | 1,780 | ||||||||||||||||
Short-term Federal Home Loan Bank advances and other | Short-term Federal Home Loan Bank advances and other | 200 | 1,880 | |||||||||||||||
Long-term Federal Home Loan Bank advances | 1,300 | 1,200 | Long-term Federal Home Loan Bank advances | 1,200 | 1,400 | |||||||||||||
Other long-term debt | 493 | 493 | Other long-term debt | 396 | 396 | |||||||||||||
Representation and warranty reserve | 16 | 27 | ||||||||||||||||
Other liabilities ($60 and $60 measured at fair value, respectively) | 394 | 417 | ||||||||||||||||
Other liabilities | Other liabilities | 1,367 | 1,080 | |||||||||||||||
Total liabilities | 15,429 | 12,717 | Total liabilities | 20,511 | 22,765 | |||||||||||||
Stockholders’ Equity | Stockholders’ Equity | |||||||||||||||||
Common stock $0.01 par value, 80,000,000 and 70,000,000 shares authorized; 57,181,536 and 56,824,802 shares issued and outstanding, respectively | 1 | 1 | ||||||||||||||||
Common stock $0.01 par value, 80,000,000 shares authorized; 53,236,067 and 53,197,650 shares issued and outstanding, respectively | Common stock $0.01 par value, 80,000,000 shares authorized; 53,236,067 and 53,197,650 shares issued and outstanding, respectively | 1 | 1 | |||||||||||||||
Additional paid in capital | 1,511 | 1,503 | Additional paid in capital | 1,357 | 1,355 | |||||||||||||
Accumulated other comprehensive loss | (8 | ) | (7 | ) | ||||||||||||||
Accumulated deficit | (53 | ) | (161 | ) | ||||||||||||||
Accumulated other comprehensive income | Accumulated other comprehensive income | (2) | 35 | |||||||||||||||
Retained earnings | Retained earnings | 1,377 | 1,327 | |||||||||||||||
Total stockholders’ equity | 1,451 | 1,336 | Total stockholders’ equity | 2,733 | 2,718 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 16,880 | $ | 14,053 | Total liabilities and stockholders’ equity | $ | 23,244 | $ | 25,483 |
Flagstar Bancorp, Inc. Consolidated Statements of Operations (In millions, except per share data) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Unaudited) | |||||||||||||||
Interest Income | |||||||||||||||
Loans | $ | 120 | $ | 90 | $ | 319 | $ | 256 | |||||||
Investment securities | 20 | 16 | 59 | 50 | |||||||||||
Interest-earning deposits and other | — | — | 1 | — | |||||||||||
Total interest income | 140 | 106 | 379 | 306 | |||||||||||
Interest Expense | |||||||||||||||
Deposits | 13 | 12 | 37 | 34 | |||||||||||
Short-term Federal Home Loan Bank advances and other | 11 | 1 | 23 | 4 | |||||||||||
Long-term Federal Home Loan Bank advances | 6 | 7 | 17 | 22 | |||||||||||
Other long-term debt | 7 | 6 | 19 | 10 | |||||||||||
Total interest expense | 37 | 26 | 96 | 70 | |||||||||||
Net interest income | 103 | 80 | 283 | 236 | |||||||||||
Provision (benefit) for loan losses | 2 | 7 | 4 | (9 | ) | ||||||||||
Net interest income after provision (benefit) for loan losses | 101 | 73 | 279 | 245 | |||||||||||
Noninterest Income | |||||||||||||||
Net gain on loan sales | 75 | 94 | 189 | 259 | |||||||||||
Loan fees and charges | 23 | 22 | 58 | 56 | |||||||||||
Deposit fees and charges | 5 | 5 | 14 | 17 | |||||||||||
Loan administration income | 5 | 4 | 16 | 14 | |||||||||||
Net return (loss) on mortgage servicing rights | 6 | (11 | ) | 26 | (21 | ) | |||||||||
Representation and warranty benefit | 4 | 6 | 11 | 12 | |||||||||||
Other noninterest income | 12 | 36 | 32 | 52 | |||||||||||
Total noninterest income | 130 | 156 | 346 | 389 | |||||||||||
Noninterest Expense | |||||||||||||||
Compensation and benefits | 76 | 69 | 219 | 203 | |||||||||||
Commissions | 23 | 16 | 49 | 40 | |||||||||||
Occupancy and equipment | 28 | 21 | 75 | 64 | |||||||||||
Loan processing expense | 15 | 13 | 41 | 40 | |||||||||||
Legal and professional expense | 7 | 5 | 22 | 20 | |||||||||||
Other noninterest expense | 22 | 18 | 59 | 51 | |||||||||||
Total noninterest expense | 171 | 142 | 465 | 418 | |||||||||||
Income before income taxes | 60 | 87 | 160 | 216 | |||||||||||
Provision for income taxes | 20 | 30 | 52 | 73 | |||||||||||
Net income | $ | 40 | $ | 57 | $ | 108 | $ | 143 | |||||||
Net income per share | |||||||||||||||
Basic | $ | 0.71 | $ | 0.98 | $ | 1.90 | $ | 2.21 | |||||||
Diluted | $ | 0.70 | $ | 0.96 | $ | 1.86 | $ | 2.16 | |||||||
Weighted average shares outstanding | |||||||||||||||
Basic | 57,162,025 | 56,580,238 | 57,062,696 | 56,556,188 | |||||||||||
Diluted | 58,186,593 | 57,933,806 | 58,133,296 | 57,727,262 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(Unaudited) | |||||||||||
Interest Income | |||||||||||
Loans | $ | 166 | $ | 196 | |||||||
Investment securities | 11 | 12 | |||||||||
Total interest income | 177 | 208 | |||||||||
Interest Expense | |||||||||||
Deposits | 6 | 10 | |||||||||
Short-term Federal Home Loan Bank advances and other | — | 1 | |||||||||
Long-term Federal Home Loan Bank advances | 3 | 3 | |||||||||
Other long-term debt | 3 | 5 | |||||||||
Total interest expense | 12 | 19 | |||||||||
Net interest income | 165 | 189 | |||||||||
Benefit for credit losses | (4) | (28) | |||||||||
Net interest income after provision for credit losses | 169 | 217 | |||||||||
Noninterest Income | |||||||||||
Net gain on loan sales | 45 | 227 | |||||||||
Loan fees and charges | 27 | 42 | |||||||||
Net return on mortgage servicing rights | 29 | — | |||||||||
Loan administration income | 33 | 27 | |||||||||
Deposit fees and charges | 9 | 8 | |||||||||
Other noninterest income | 17 | 20 | |||||||||
Total noninterest income | 160 | 324 | |||||||||
Noninterest Expense | |||||||||||
Compensation and benefits | 127 | 144 | |||||||||
Occupancy and equipment | 45 | 46 | |||||||||
Commissions | 26 | 62 | |||||||||
Loan processing expense | 21 | 21 | |||||||||
Legal and professional expense | 11 | 8 | |||||||||
Federal insurance premiums | 4 | 6 | |||||||||
Intangible asset amortization | 2 | 3 | |||||||||
General, administrative and other | 25 | 57 | |||||||||
Total noninterest expense | 261 | 347 | |||||||||
Income before income taxes | 68 | 194 | |||||||||
Provision for income taxes | 15 | 45 | |||||||||
Net income | $ | 53 | $ | 149 | |||||||
Net income per share | |||||||||||
Basic | $ | 0.99 | $ | 2.83 | |||||||
Diluted | $ | 0.99 | $ | 2.80 | |||||||
Cash dividends declared | $ | 0.06 | $ | 0.06 | |||||||
Weighted average shares outstanding | |||||||||||
Basic | 53,219,866 | 52,675,562 | |||||||||
Diluted | 53,578,001 | 53,297,803 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(Unaudited) | |||||||||||
Net income | $ | 53 | $ | 149 | |||||||
Other comprehensive income, net of tax | |||||||||||
Investment securities | (58) | (15) | |||||||||
Derivatives and hedging activities | 21 | 22 | |||||||||
Other comprehensive income, net of tax | (37) | 7 | |||||||||
Comprehensive income | $ | 16 | $ | 156 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Unaudited) | |||||||||||||||
Net income | $ | 40 | $ | 57 | $ | 108 | $ | 143 | |||||||
Other comprehensive income (loss), net of tax | |||||||||||||||
Investment securities | 1 | (4 | ) | 3 | 12 | ||||||||||
Derivatives and hedging activities | — | 3 | (4 | ) | (34 | ) | |||||||||
Other comprehensive income (loss), net of tax | 1 | (1 | ) | (1 | ) | (22 | ) | ||||||||
Comprehensive income | $ | 41 | $ | 56 | $ | 107 | $ | 121 |
Common Stock | Accumulated Other Comprehensive Income | Total Stockholders’ Equity | ||||||||||||||||||
Number of Shares | Amount | Additional Paid in Capital | Retained Earnings | |||||||||||||||||
Balance at December 31, 2021 | 53,197,650 | $ | 1 | $ | 1,355 | $ | 35 | $ | 1,327 | $ | 2,718 | |||||||||
(Unaudited) | ||||||||||||||||||||
Net income | — | — | — | — | 53 | 53 | ||||||||||||||
Total other comprehensive income | — | — | — | (37) | — | (37) | ||||||||||||||
Stock-based compensation | 38,245 | — | 2 | — | — | 2 | ||||||||||||||
Dividends declared and paid | 172 | — | — | — | (3) | (3) | ||||||||||||||
Balance at March 31, 2022 | 53,236,067 | $ | 1 | $ | 1,357 | $ | (2) | $ | 1,377 | $ | 2,733 | |||||||||
Balance at December 31, 2020 | 52,656,067 | $ | 1 | $ | 1,346 | $ | 47 | $ | 807 | $ | 2,201 | |||||||||
(Unaudited) | ||||||||||||||||||||
Net income | — | — | — | — | 149 | 149 | ||||||||||||||
Total other comprehensive income | — | — | — | 7 | — | 7 | ||||||||||||||
Shares issued from the Employee Stock Purchase Plan | 62,462 | — | — | — | — | — | ||||||||||||||
Stock-based compensation | 33,957 | — | 4 | — | — | 4 | ||||||||||||||
Dividends declared and paid | 114 | — | — | — | (3) | (3) | ||||||||||||||
Balance at March 31, 2021 | 52,752,600 | $ | 1 | $ | 1,350 | $ | 54 | $ | 953 | $ | 2,358 |
Preferred Stock | Common Stock | |||||||||||||||||||||
Number of Shares Outstanding | Amount of Preferred Stock | Number of Shares Outstanding | Amount of Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Total Stockholders’ Equity | |||||||||||||||
Balance at December 31, 2015 | 266,657 | $ | 267 | 56,483,258 | $ | 1 | $ | 1,486 | $ | 2 | $ | (227 | ) | $ | 1,529 | |||||||
(Unaudited) | ||||||||||||||||||||||
Net income | — | — | — | — | — | — | 143 | 143 | ||||||||||||||
Total other comprehensive income (loss) | — | — | — | — | — | (22 | ) | — | (22 | ) | ||||||||||||
Preferred stock redemption | (266,657 | ) | (267 | ) | — | — | — | — | — | (267 | ) | |||||||||||
Dividends on preferred stock | — | — | — | — | — | — | (105 | ) | (105 | ) | ||||||||||||
Stock-based compensation | — | — | 114,013 | — | 8 | — | — | 8 | ||||||||||||||
Balance at September 30, 2016 | — | $ | — | 56,597,271 | $ | 1 | $ | 1,494 | $ | (20 | ) | $ | (189 | ) | $ | 1,286 | ||||||
Balance at December 31, 2016 | — | $ | — | 56,824,802 | $ | 1 | $ | 1,503 | $ | (7 | ) | $ | (161 | ) | $ | 1,336 | ||||||
(Unaudited) | ||||||||||||||||||||||
Net income | — | — | — | — | — | — | 108 | 108 | ||||||||||||||
Total other comprehensive income (loss) | — | — | — | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Shares issued from Employee Stock Purchase Plan | — | — | 19,897 | — | — | — | — | — | ||||||||||||||
Warrant exercise | — | — | 154,313 | — | 4 | — | — | 4 | ||||||||||||||
Stock-based compensation | — | — | 182,524 | — | 4 | — | — | 4 | ||||||||||||||
Balance at September 30, 2017 | — | $ | — | 57,181,536 | $ | 1 | $ | 1,511 | $ | (8 | ) | $ | (53 | ) | $ | 1,451 |
Flagstar Bancorp, Inc. Condensed Consolidated Statements of Cash Flows (In millions) | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(Unaudited) | |||||||
Operating Activities | |||||||
Net cash used in operating activities | $ | (19,239 | ) | $ | (10,128 | ) | |
Investing Activities | |||||||
Proceeds from sale of AFS securities including loans that have been securitized | $ | 17,949 | $ | 10,876 | |||
Collection of principal on investment securities AFS | 158 | 116 | |||||
Purchase of investment securities AFS and other | (593 | ) | (203 | ) | |||
Collection of principal on investment securities HTM | 116 | 126 | |||||
Purchase of investment securities HTM and other | — | (15 | ) | ||||
Proceeds received from the sale of LHFI | 78 | 228 | |||||
Net Origination, purchase, and principal repayments of LHFI | (1,231 | ) | (1,297 | ) | |||
Purchase of bank owned life insurance | (50 | ) | (85 | ) | |||
Net purchase of FHLB stock | (84 | ) | (2 | ) | |||
Acquisition of premises and equipment, net of proceeds | (74 | ) | (44 | ) | |||
Proceeds from the sale of MSRs | 252 | 35 | |||||
Other, net | 4 | 14 | |||||
Net cash provided by investing activities | $ | 16,525 | $ | 9,749 | |||
Financing Activities | |||||||
Net change in deposit accounts | $ | 361 | $ | 1,436 | |||
Net change in short term FHLB borrowings and other short term debt | 2,285 | (1,211 | ) | ||||
Proceeds from long term FHLB advances | 150 | 395 | |||||
Repayment of long term FHLB advances | (50 | ) | — | ||||
Net receipt of payments of loans serviced for others | 24 | 91 | |||||
Preferred stock dividends | — | (105 | ) | ||||
Redemption of preferred stock | — | (267 | ) | ||||
Net receipt of escrow payments | 19 | 6 | |||||
Net cash provided by financing activities | $ | 2,789 | $ | 345 | |||
Net increase (decrease) in cash and cash equivalents | 75 | (34 | ) | ||||
Beginning cash and cash equivalents | 158 | 208 | |||||
Ending cash and cash equivalents | $ | 233 | $ | 174 | |||
Supplemental disclosure of cash flow information | |||||||
Non-cash reclassification of loans originated LHFI to LHFS | $ | 106 | $ | 1,331 | |||
Non-cash reclassification of LHFS to AFS securities | $ | 17,657 | $ | 10,588 | |||
MSRs resulting from sale or securitization of loans | $ | 178 | $ | 173 | |||
Operating section supplemental disclosures | |||||||
Cash proceeds from sales of LHFS | $ | 5,547 | $ | 14,097 | |||
Origination, premium paid and purchase of LHFS, net of principal repayments | $ | (24,518 | ) | $ | (23,826 | ) |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(Unaudited) | |||||||||||
Operating Activities | |||||||||||
Net cash provided by (used in) operating activities | $ | 1,231 | $ | (320) | |||||||
Investing Activities | |||||||||||
Proceeds from sale of AFS securities including loans that have been securitized | 642 | 417 | |||||||||
Collection of principal on investment securities AFS | 97 | 239 | |||||||||
Purchase of investment securities AFS and other | (233) | (86) | |||||||||
Collection of principal on investment securities HTM | 15 | 58 | |||||||||
Proceeds received from the sale of LHFI | — | 35 | |||||||||
Net closings, purchases, and principal repayments of LHFI | 143 | 1,337 | |||||||||
Acquisition of premises and equipment, net of proceeds | (12) | (11) | |||||||||
Net sale of FHLB stock | 48 | — | |||||||||
Net proceeds from the sale of MSRs | — | (2) | |||||||||
Purchase of MSRs | (13) | — | |||||||||
Other, net | (8) | (3) | |||||||||
Net cash provided by investing activities | 679 | 1,984 | |||||||||
Financing Activities | |||||||||||
Net change in deposit accounts | (661) | (553) | |||||||||
Net change in short-term FHLB borrowings and other short-term debt | (1,680) | (1,155) | |||||||||
Repayment of long-term FHLB advances | (200) | — | |||||||||
Repayment of long-term debt | — | (246) | |||||||||
Net receipt of payments of loans serviced for others | 18 | 113 | |||||||||
Dividends declared and paid | (3) | (3) | |||||||||
Other | 1 | 6 | |||||||||
Net cash used in financing activities | (2,525) | (1,838) | |||||||||
Net change in cash, cash equivalents and restricted cash (1) | (615) | (174) | |||||||||
Beginning cash, cash equivalents and restricted cash (1) | 1,092 | 654 | |||||||||
Ending cash, cash equivalents and restricted cash (1) | $ | 477 | $ | 480 | |||||||
Supplemental disclosure of cash flow information | |||||||||||
Non-cash reclassification of LHFI to LHFS | $ | 2 | $ | 14 | |||||||
Non-cash reclassification of LHFS to securitized LHFS | $ | 642 | $ | 417 | |||||||
MSRs resulting from sale or securitization of loans | $ | 79 | $ | 65 | |||||||
Operating section supplemental disclosures | |||||||||||
Proceeds from sales of LHFS | $ | 9,232 | $ | 13,721 | |||||||
Closings, premium paid and purchase of LHFS, net of principal repayments | $ | (8,344) | $ | (14,109) |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
(Dollars in millions) | ||||||||||||||
March 31, 2022 | ||||||||||||||
Available-for-sale securities | ||||||||||||||
Agency - Commercial | $ | 1,086 | $ | — | $ | (28) | $ | 1,058 | ||||||
Agency - Residential | 649 | — | (34) | 615 | ||||||||||
Corporate debt obligations | 71 | 1 | — | 72 | ||||||||||
Municipal obligations | 19 | — | — | 19 | ||||||||||
Other MBS | 258 | — | (13) | 245 | ||||||||||
Certificate of deposits | 1 | — | — | 1 | ||||||||||
Total available-for-sale securities (1) | $ | 2,084 | $ | 1 | $ | (75) | $ | 2,010 | ||||||
Held-to-maturity securities | ||||||||||||||
Agency - Commercial | $ | 93 | $ | — | $ | (2) | $ | 91 | ||||||
Agency - Residential | 97 | — | (2) | 95 | ||||||||||
Total held-to-maturity securities (1) | $ | 190 | $ | — | $ | (4) | $ | 186 | ||||||
December 31, 2021 | ||||||||||||||
Available-for-sale securities | ||||||||||||||
Agency - Commercial | $ | 739 | $ | 8 | $ | — | $ | 747 | ||||||
Agency - Residential | 690 | 9 | (3) | 696 | ||||||||||
Corporate debt obligations | 70 | 3 | — | 73 | ||||||||||
Municipal obligations | 20 | — | — | 20 | ||||||||||
Other MBS | 268 | — | (1) | 267 | ||||||||||
Certificate of deposits | 1 | — | — | 1 | ||||||||||
Total available-for-sale securities (1) | $ | 1,788 | $ | 20 | $ | (4) | $ | 1,804 | ||||||
Held-to-maturity securities | ||||||||||||||
Agency - Commercial | $ | 99 | $ | 1 | $ | — | $ | 100 | ||||||
Agency - Residential | 106 | 3 | — | 109 | ||||||||||
Total held-to-maturity securities (1) | $ | 205 | $ | 4 | $ | — | $ | 209 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(Dollars in millions) | |||||||||||||||
September 30, 2017 | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Agency - Commercial | $ | 755 | $ | 1 | $ | (6 | ) | $ | 750 | ||||||
Agency - Residential | 818 | 2 | (11 | ) | 809 | ||||||||||
Municipal obligations | 44 | — | — | 44 | |||||||||||
Corporate debt obligations | 33 | 1 | — | 34 | |||||||||||
Total available-for-sale securities (1) | $ | 1,650 | $ | 4 | $ | (17 | ) | $ | 1,637 | ||||||
Held-to-maturity securities | |||||||||||||||
Agency - Commercial | $ | 542 | $ | 1 | $ | (5 | ) | $ | 538 | ||||||
Agency - Residential | 435 | — | (2 | ) | 433 | ||||||||||
Total held-to-maturity securities (1) | $ | 977 | $ | 1 | $ | (7 | ) | $ | 971 | ||||||
December 31, 2016 | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Agency - Commercial | $ | 551 | $ | 2 | $ | (5 | ) | $ | 548 | ||||||
Agency - Residential | 913 | 1 | (16 | ) | 898 | ||||||||||
Municipal obligations | 34 | — | — | 34 | |||||||||||
Total available-for-sale securities (1) | $ | 1,498 | $ | 3 | $ | (21 | ) | $ | 1,480 | ||||||
Held-to-maturity securities | |||||||||||||||
Agency - Commercial | $ | 595 | $ | — | $ | (6 | ) | $ | 589 | ||||||
Agency - Residential | 498 | 1 | (4 | ) | 495 | ||||||||||
Total held-to-maturity securities (1) | $ | 1,093 | $ | 1 | $ | (10 | ) | $ | 1,084 |
Unrealized Loss Position with Duration 12 Months and Over | Unrealized Loss Position with Duration Under 12 Months | ||||||||||||||||||||||
Fair Value | Number of Securities | Unrealized Loss | Fair Value | Number of Securities | Unrealized Loss | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
Agency - Commercial | $ | 2 | 1 | $ | — | $ | 895 | 91 | $ | (28) | |||||||||||||
Agency - Residential | — | — | — | 609 | 87 | (34) | |||||||||||||||||
Municipal obligations | — | — | — | 12 | 5 | — | |||||||||||||||||
Corporate debt obligations | — | — | — | 11 | 4 | — | |||||||||||||||||
Other mortgage-backed securities | — | 1 | — | 157 | 7 | (13) | |||||||||||||||||
Held-to-maturity securities | |||||||||||||||||||||||
Agency - Commercial | $ | — | — | $ | — | $ | 86 | 24 | $ | (2) | |||||||||||||
Agency - Residential | — | — | — | 90 | 43 | (2) | |||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
Agency - Commercial | $ | 4 | 2 | $ | — | $ | 143 | 9 | $ | — | |||||||||||||
Agency - Residential | — | — | — | 291 | 19 | (3) | |||||||||||||||||
Municipal obligations | — | — | — | 3 | 1 | — | |||||||||||||||||
Corporate debt obligations | — | — | — | — | — | — | |||||||||||||||||
Other mortgage-backed securities | — | 1 | — | 147 | 5 | (1) | |||||||||||||||||
Held-to-maturity securities | |||||||||||||||||||||||
Agency - Commercial | $ | — | — | $ | — | $ | — | 1 | $ | — | |||||||||||||
Agency - Residential | — | — | — | — | — | — |
Unrealized Loss Position with Duration 12 Months and Over | Unrealized Loss Position with Duration Under 12 Months | ||||||||||||||||||||
Fair Value | Number of Securities | Unrealized Loss | Fair Value | Number of Securities | Unrealized Loss | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
Agency - Commercial | $ | 34 | 3 | $ | (1 | ) | $ | 582 | 40 | $ | (5 | ) | |||||||||
Agency - Residential | 98 | 10 | (3 | ) | 501 | 40 | (8 | ) | |||||||||||||
Municipal obligations | 1 | 1 | — | 21 | 8 | — | |||||||||||||||
Corporate debt obligations | — | — | — | 3 | 1 | — | |||||||||||||||
Held-to-maturity securities | |||||||||||||||||||||
Agency - Commercial | $ | 16 | 2 | $ | — | $ | 395 | 26 | $ | (5 | ) | ||||||||||
Agency - Residential | 16 | 2 | — | 319 | 40 | (2 | ) | ||||||||||||||
December 31, 2016 | |||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
Agency - Commercial | $ | 6 | 1 | $ | — | $ | 345 | 29 | $ | (5 | ) | ||||||||||
Agency - Residential | — | — | — | 748 | 55 | (16 | ) | ||||||||||||||
Municipal obligations | — | — | — | 17 | 8 | — | |||||||||||||||
Held-to-maturity securities | |||||||||||||||||||||
Agency - Commercial | $ | — | — | $ | — | $ | 528 | 34 | $ | (6 | ) | ||||||||||
Agency - Residential | — | — | — | 385 | 43 | (4 | ) |
Investment Securities Available-for-Sale | Investment Securities Held-to-Maturity | ||||||||||||||||||||||
Amortized Cost | Fair Value | Weighted Average Yield (1) | Amortized Cost | Fair Value | Weighted Average Yield (1) | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||
Due in one year or less | $ | 6 | $ | 6 | 2.16 | % | $ | 5 | $ | 5 | 2.21 | % | |||||||||||
Due after one year through five years | 9 | 9 | 4.65 | % | 3 | 3 | 2.86 | % | |||||||||||||||
Due after five years through 10 years | 211 | 208 | 2.86 | % | 3 | 3 | 2.01 | % | |||||||||||||||
Due after 10 years | 1,858 | 1,787 | 2.27 | % | 179 | 175 | 2.49 | % | |||||||||||||||
Total | $ | 2,084 | $ | 2,010 | $ | 190 | $ | 186 |
Investment Securities Available-for-Sale | Investment Securities Held-to-maturity | ||||||||||||||||||||
Amortized Cost | Fair Value | Weighted Average Yield | Amortized Cost | Fair Value | Weighted Average Yield | ||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||
Due after one year through five years | $ | 17 | $ | 17 | 3.37 | % | $ | — | $ | — | — | % | |||||||||
Due after five years through 10 years | 44 | 45 | 4.83 | % | 61 | 61 | 2.50 | % | |||||||||||||
Due after 10 years | 1,589 | 1,575 | 2.34 | % | 916 | 910 | 2.43 | % | |||||||||||||
Total | $ | 1,650 | $ | 1,637 | $ | 977 | $ | 971 |
March 31, 2022 | December 31, 2021 | ||||||||||
(Dollars in millions) | |||||||||||
Consumer loans | |||||||||||
Residential first mortgage | $ | 1,499 | $ | 1,536 | |||||||
Home equity | 596 | 613 | |||||||||
Other | 1,267 | 1,236 | |||||||||
Total consumer loans | 3,362 | 3,385 | |||||||||
Commercial loans | |||||||||||
Commercial real estate | 3,254 | 3,223 | |||||||||
Commercial and industrial | 1,979 | 1,826 | |||||||||
Warehouse lending | 4,641 | 4,974 | |||||||||
Total commercial loans | 9,874 | 10,023 | |||||||||
Total loans held-for-investment | $ | 13,236 | $ | 13,408 |
September 30, 2017 | December 31, 2016 | ||||||
(Dollars in millions) | |||||||
Consumer loans | |||||||
Residential first mortgage | $ | 2,665 | $ | 2,327 | |||
Home equity | 496 | 443 | |||||
Other | 26 | 28 | |||||
Total consumer loans | 3,187 | 2,798 | |||||
Commercial loans | |||||||
Commercial real estate (1) | 1,760 | 1,261 | |||||
Commercial and industrial | 1,097 | 769 | |||||
Warehouse lending | 1,159 | 1,237 | |||||
Total commercial loans | 4,016 | 3,267 | |||||
Total loans held-for-investment | $ | 7,203 | $ | 6,065 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(Dollars in millions) | |||||||||||
Loans Sold (1) | |||||||||||
Performing loans | $ | — | $ | 36 | |||||||
Total loans sold | $ | — | $ | 36 | |||||||
Residential First Mortgage (1) | Home Equity | Other Consumer | Commercial Real Estate | Commercial and Industrial | Warehouse Lending | Total | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Three Months Ended March 31, 2022 | |||||||||||||||||||||||
Beginning balance | $ | 40 | $ | 14 | $ | 36 | $ | 28 | $ | 32 | $ | 4 | $ | 154 | |||||||||
(Benefit) provision | 4 | 1 | (1) | (6) | 1 | (1) | (2) | ||||||||||||||||
Charge-offs | (1) | — | (2) | — | (20) | — | (23) | ||||||||||||||||
Recoveries | — | 1 | 1 | — | — | — | 2 | ||||||||||||||||
Ending allowance balance | $ | 43 | $ | 16 | $ | 34 | $ | 22 | $ | 13 | $ | 3 | $ | 131 | |||||||||
Three Months Ended March 31, 2021 | |||||||||||||||||||||||
Beginning balance | $ | 49 | $ | 25 | $ | 39 | $ | 84 | $ | 51 | $ | 4 | $ | 252 | |||||||||
Benefit | (2) | (5) | (6) | — | (11) | — | (24) | ||||||||||||||||
Charge-offs | (2) | — | (1) | — | (1) | — | (4) | ||||||||||||||||
Recoveries | — | — | 1 | — | 16 | — | 17 | ||||||||||||||||
Ending allowance balance | $ | 45 | $ | 20 | $ | 33 | $ | 84 | $ | 55 | $ | 4 | $ | 241 |
Residential First Mortgage (1) | Home Equity | Other Consumer | Commercial Real Estate | Commercial and Industrial | Warehouse Lending | Total | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Three Months Ended September 30, 2017 | |||||||||||||||||||||||||||
Beginning balance ALLL | $ | 56 | $ | 19 | $ | 1 | $ | 37 | $ | 21 | $ | 6 | $ | 140 | |||||||||||||
Charge-offs (2) | (1 | ) | (2 | ) | — | — | — | — | (3 | ) | |||||||||||||||||
Recoveries | — | 1 | — | — | — | — | 1 | ||||||||||||||||||||
Provision (benefit) | (3 | ) | 2 | — | 5 | (2 | ) | — | 2 | ||||||||||||||||||
Ending balance ALLL | $ | 52 | $ | 20 | $ | 1 | $ | 42 | $ | 19 | $ | 6 | $ | 140 | |||||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||||||||||
Beginning balance ALLL | $ | 81 | $ | 30 | $ | 1 | $ | 19 | $ | 11 | $ | 8 | $ | 150 | |||||||||||||
Charge-offs (2) | (7 | ) | (1 | ) | (1 | ) | — | — | — | (9 | ) | ||||||||||||||||
Recoveries | — | 1 | 1 | — | — | — | 2 | ||||||||||||||||||||
Provision (benefit)(3) | (4 | ) | (5 | ) | — | 6 | 3 | — | — | ||||||||||||||||||
Ending balance ALLL | $ | 70 | $ | 25 | $ | 1 | $ | 25 | $ | 14 | $ | 8 | $ | 143 | |||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||
Beginning balance ALLL | $ | 65 | $ | 24 | $ | 1 | $ | 28 | $ | 17 | $ | 7 | $ | 142 | |||||||||||||
Charge-offs (2) | (6 | ) | (3 | ) | (1 | ) | — | — | — | (10 | ) | ||||||||||||||||
Recoveries | 1 | 2 | 1 | — | — | — | 4 | ||||||||||||||||||||
Provision (benefit) | (8 | ) | (3 | ) | — | 14 | 2 | (1 | ) | 4 | |||||||||||||||||
Ending balance ALLL | $ | 52 | $ | 20 | $ | 1 | $ | 42 | $ | 19 | $ | 6 | $ | 140 | |||||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||||||
Beginning balance ALLL | $ | 116 | $ | 32 | $ | 2 | $ | 18 | $ | 13 | $ | 6 | $ | 187 | |||||||||||||
Charge-offs (2) | (26 | ) | (4 | ) | (3 | ) | — | — | — | (33 | ) | ||||||||||||||||
Recoveries | 1 | 2 | 2 | — | — | — | 5 | ||||||||||||||||||||
Provision (benefit)(3) | (21 | ) | (5 | ) | — | 7 | 1 | 2 | (16 | ) | |||||||||||||||||
Ending balance ALLL | $ | 70 | $ | 25 | $ | 1 | $ | 25 | $ | 14 | $ | 8 | $ | 143 |
Residential First Mortgage (1) | Home Equity | Other Consumer | Commercial Real Estate | Commercial and Industrial | Warehouse Lending | Total | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||||||
Loans held-for-investment (2) | |||||||||||||||||||||||||||
Individually evaluated | $ | 35 | $ | 29 | $ | — | $ | 1 | $ | — | $ | — | $ | 65 | |||||||||||||
Collectively evaluated | 2,621 | 463 | 26 | 1,759 | 1,097 | 1,159 | 7,125 | ||||||||||||||||||||
Total loans | $ | 2,656 | $ | 492 | $ | 26 | $ | 1,760 | $ | 1,097 | $ | 1,159 | $ | 7,190 | |||||||||||||
Allowance for loan losses (2) | |||||||||||||||||||||||||||
Individually evaluated | $ | 6 | $ | 9 | $ | — | $ | — | $ | — | $ | — | $ | 15 | |||||||||||||
Collectively evaluated | 46 | 11 | 1 | 42 | 19 | 6 | 125 | ||||||||||||||||||||
Total allowance for loan losses | $ | 52 | $ | 20 | $ | 1 | $ | 42 | $ | 19 | $ | 6 | $ | 140 | |||||||||||||
December 31, 2016 | |||||||||||||||||||||||||||
Loans held-for-investment (2) | |||||||||||||||||||||||||||
Individually evaluated | $ | 46 | $ | 29 | $ | — | $ | — | $ | — | $ | — | $ | 75 | |||||||||||||
Collectively evaluated | 2,274 | 349 | 28 | 1,261 | 769 | 1,237 | 5,918 | ||||||||||||||||||||
Total loans | $ | 2,320 | $ | 378 | $ | 28 | $ | 1,261 | $ | 769 | $ | 1,237 | $ | 5,993 | |||||||||||||
Allowance for loan losses (2) | |||||||||||||||||||||||||||
Individually evaluated | $ | 5 | $ | 8 | $ | — | $ | — | $ | — | $ | — | $ | 13 | |||||||||||||
Collectively evaluated | 60 | 16 | 1 | 28 | 17 | 7 | 129 | ||||||||||||||||||||
Total allowance for loan losses | $ | 65 | $ | 24 | $ | 1 | $ | 28 | $ | 17 | $ | 7 | $ | 142 |
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due (1) | Total Past Due | Current | Total LHFI (3) (4) (5) | |||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||
Consumer loans | ||||||||||||||||||||
Residential first mortgage | $ | 7 | $ | 8 | $ | 86 | $ | 101 | $ | 1,398 | $ | 1,499 | ||||||||
Home equity | 2 | 1 | 9 | 12 | 584 | 596 | ||||||||||||||
Other | 3 | 1 | 3 | 7 | 1,260 | 1,267 | ||||||||||||||
Total consumer loans | 12 | 10 | 98 | 120 | 3,242 | 3,362 | ||||||||||||||
Commercial loans | ||||||||||||||||||||
Commercial real estate | — | — | — | — | 3,254 | 3,254 | ||||||||||||||
Commercial and industrial | — | — | — | — | 1,979 | 1,979 | ||||||||||||||
Warehouse lending | — | — | — | — | 4,641 | 4,641 | ||||||||||||||
Total commercial loans | — | — | — | — | 9,874 | 9,874 | ||||||||||||||
Total loans (2) | $ | 12 | $ | 10 | $ | 98 | $ | 120 | $ | 13,116 | $ | 13,236 | ||||||||
December 31, 2021 | ||||||||||||||||||||
Consumer loans | ||||||||||||||||||||
Residential first mortgage | $ | 14 | $ | 34 | $ | 49 | $ | 97 | $ | 1,439 | $ | 1,536 | ||||||||
Home equity | 8 | 1 | 9 | 18 | 595 | 613 | ||||||||||||||
Other | 4 | 1 | 4 | 9 | 1,227 | 1,236 | ||||||||||||||
Total consumer loans | 26 | 36 | 62 | 124 | 3,261 | 3,385 | ||||||||||||||
Commercial loans | ||||||||||||||||||||
Commercial real estate | — | — | — | — | 3,223 | 3,223 | ||||||||||||||
Commercial and industrial | — | — | 32 | 32 | 1,794 | 1,826 | ||||||||||||||
Warehouse lending | — | — | — | — | 4,974 | 4,974 | ||||||||||||||
Total commercial loans | — | — | 32 | 32 | 9,991 | 10,023 | ||||||||||||||
Total loans (2) | $ | 26 | $ | 36 | $ | 94 | $ | 156 | $ | 13,252 | $ | 13,408 |
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due (1) | Total Past Due | Current | Total LHFI | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Residential first mortgage | $ | 3 | $ | 1 | $ | 24 | $ | 28 | $ | 2,637 | $ | 2,665 | |||||||||||
Home equity | 1 | — | 6 | 7 | 489 | 496 | |||||||||||||||||
Other | — | — | — | — | 26 | 26 | |||||||||||||||||
Total consumer loans | 4 | 1 | 30 | 35 | 3,152 | 3,187 | |||||||||||||||||
Commercial loans | |||||||||||||||||||||||
Commercial real estate | — | — | 1 | 1 | 1,759 | 1,760 | |||||||||||||||||
Commercial and industrial | — | — | — | — | 1,097 | 1,097 | |||||||||||||||||
Warehouse lending | — | — | — | — | 1,159 | 1,159 | |||||||||||||||||
Total commercial loans | — | — | 1 | 1 | 4,015 | 4,016 | |||||||||||||||||
Total loans (2) | $ | 4 | $ | 1 | $ | 31 | $ | 36 | $ | 7,167 | $ | 7,203 | |||||||||||
December 31, 2016 | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Residential first mortgage | $ | 6 | $ | — | $ | 29 | $ | 35 | $ | 2,292 | $ | 2,327 | |||||||||||
Home equity | 1 | 2 | 11 | 14 | 429 | 443 | |||||||||||||||||
Other | 1 | — | — | 1 | 27 | 28 | |||||||||||||||||
Total consumer loans | 8 | 2 | 40 | 50 | 2,748 | 2,798 | |||||||||||||||||
Commercial loans | |||||||||||||||||||||||
Commercial real estate | — | — | — | — | 1,261 | 1,261 | |||||||||||||||||
Commercial and industrial | — | — | — | — | 769 | 769 | |||||||||||||||||
Warehouse lending | — | — | — | — | 1,237 | 1,237 | |||||||||||||||||
Total commercial loans | — | — | — | — | 3,267 | 3,267 | |||||||||||||||||
Total loans (2) | $ | 8 | $ | 2 | $ | 40 | $ | 50 | $ | 6,015 | $ | 6,065 |
TDRs | |||||||||||
Performing | Nonperforming | Total | |||||||||
(Dollars in millions) | |||||||||||
March 31, 2022 | |||||||||||
Consumer loans | |||||||||||
Residential first mortgage | $ | 16 | $ | 10 | $ | 26 | |||||
Home equity | 7 | 2 | 9 | ||||||||
Total TDRs (1)(2) | $ | 23 | $ | 12 | $ | 35 | |||||
December 31, 2021 | |||||||||||
Consumer loans | |||||||||||
Residential first mortgage | $ | 14 | $ | 11 | $ | 25 | |||||
Home equity | 8 | 2 | 10 | ||||||||
Total consumer TDR loans (1)(2) | 22 | 13 | 35 | ||||||||
Commercial loans | |||||||||||
Commercial and industrial | 2 | — | 2 | ||||||||
Total commercial TDR loans | 2 | — | 2 | ||||||||
Total TDRs (1)(2) | $ | 24 | $ | 13 | $ | 37 |
TDRs | |||||||||||
Performing | Nonperforming | Total | |||||||||
(Dollars in millions) | |||||||||||
September 30, 2017 | |||||||||||
Consumer loans (1) | |||||||||||
Residential first mortgage | $ | 20 | $ | 11 | $ | 31 | |||||
Home equity | 26 | 4 | 30 | ||||||||
Total TDRs (2) | $ | 46 | $ | 15 | $ | 61 | |||||
December 31, 2016 | |||||||||||
Consumer loans (1) | |||||||||||
Residential first mortgage | $ | 22 | $ | 11 | $ | 33 | |||||
Home equity | 45 | 7 | 52 | ||||||||
Total TDRs (2) | $ | 67 | $ | 18 | $ | 85 |
New TDRs | |||||||||||||||||||||||||
New TDRs | Number of Accounts | Pre-Modification Unpaid Principal Balance | Post-Modification Unpaid Principal Balance (1) | ||||||||||||||||||||||
Number of Accounts | Pre-Modification Unpaid Principal Balance | Post-Modification Unpaid Principal Balance (1) | Increase in Allowance at Modification | (Dollars in millions) | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||
Three Months Ended September 30, 2017 | |||||||||||||||||||||||||
Residential first mortgages | 9 | $ | 3 | $ | 3 | $ | — | ||||||||||||||||||
Home equity (2) | 37 | 2 | 2 | 1 | |||||||||||||||||||||
Other consumer | — | — | — | — | |||||||||||||||||||||
Total TDR loans | 46 | $ | 5 | $ | 5 | $ | 1 | ||||||||||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||||||||
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2022 | ||||||||||||||||||||||||
Residential first mortgages | 1 | $ | — | $ | — | $ | — | Residential first mortgages | 9 | $ | 2 | $ | 2 | ||||||||||||
Home equity (2)(3) | 17 | 1 | 1 | — | Home equity (2)(3) | 1 | — | — | |||||||||||||||||
Commercial Real Estate | Commercial Real Estate | — | — | — | |||||||||||||||||||||
Total TDR loans | 18 | $ | 1 | $ | 1 | $ | — | Total TDR loans | 10 | $ | 2 | $ | 2 | ||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||
Three Months Ended March 31, 2021 | Three Months Ended March 31, 2021 | ||||||||||||||||||||||||
Residential first mortgages | 17 | $ | 4 | $ | 4 | $ | — | Residential first mortgages | 6 | $ | 3 | $ | 3 | ||||||||||||
Home equity (2) | 71 | 5 | 5 | 2 | |||||||||||||||||||||
Other consumer | 1 | — | — | — | |||||||||||||||||||||
Total TDR loans | 89 | $ | 9 | $ | 9 | $ | 2 | Total TDR loans | 6 | $ | 3 | $ | 3 | ||||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||||
Residential first mortgages | 17 | $ | 3 | $ | 4 | $ | — | ||||||||||||||||||
Home equity (2)(3) | 128 | 8 | 7 | — | |||||||||||||||||||||
Commercial and industrial | 1 | 2 | 1 | — | |||||||||||||||||||||
Total TDR loans | 146 | $ | 13 | $ | 12 | $ | — |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Recorded Investment | Net Unpaid Principal Balance | Related Allowance | Recorded Investment | Net Unpaid Principal Balance | Related Allowance | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Residential first mortgage | $ | 15 | $ | 15 | $ | — | $ | 6 | $ | 6 | $ | — | |||||||||||
Total consumer loans with no related allowance recorded | $ | 15 | $ | 15 | $ | — | $ | 6 | $ | 6 | $ | — | |||||||||||
With an allowance recorded | |||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||
Residential first mortgage | $ | 20 | $ | 20 | $ | 6 | $ | 40 | $ | 40 | $ | 5 | |||||||||||
Home equity | 28 | 29 | 9 | 29 | 29 | 8 | |||||||||||||||||
Commercial loans | |||||||||||||||||||||||
Commercial real estate | 1 | 1 | — | — | — | — | |||||||||||||||||
Total consumer loans with an allowance recorded | $ | 49 | $ | 50 | $ | 15 | $ | 69 | $ | 69 | $ | 13 | |||||||||||
Total Impaired loans | |||||||||||||||||||||||
Residential first mortgage | $ | 35 | $ | 35 | $ | 6 | $ | 46 | $ | 46 | $ | 5 | |||||||||||
Home equity | 28 | 29 | 9 | 29 | 29 | 8 | |||||||||||||||||
Commercial real estate | 1 | 1 | — | — | — | — | |||||||||||||||||
Total impaired loans | $ | 64 | $ | 65 | $ | 15 | $ | 75 | $ | 75 | $ | 13 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||
Residential first mortgage | $ | 37 | $ | 1 | $ | 43 | $ | — | $ | 39 | $ | 1 | $ | 55 | $ | 1 | |||||||||||||||
Home equity | 28 | — | 30 | — | 28 | 1 | 31 | 1 | |||||||||||||||||||||||
Commercial loans | |||||||||||||||||||||||||||||||
Commercial real estate | 1 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Commercial and industrial | — | — | 1 | — | — | — | 2 | — | |||||||||||||||||||||||
Total impaired loans | $ | 66 | $ | 1 | $ | 74 | $ | — | $ | 67 | $ | 2 | $ | 88 | $ | 2 |
Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | December 31, 2021 | |||||||||||||||||||||||||||||
Term Loans | ||||||||||||||||||||||||||||||||
Amortized Cost Basis by Closing Year | ||||||||||||||||||||||||||||||||
As of March 31, 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | ||||||||||||||||||||||||||
Consumer Loans | (Dollars in millions) | |||||||||||||||||||||||||||||||
Residential First Mortgage | ||||||||||||||||||||||||||||||||
Pass | $ | 107 | $ | 340 | $ | 169 | $ | 204 | $ | 74 | $ | 408 | $ | 77 | $ | 10 | $ | 1,389 | $ | 1,444 | ||||||||||||
Watch | — | — | 1 | 1 | 3 | 4 | — | — | 9 | 34 | ||||||||||||||||||||||
Substandard | — | 1 | 3 | 24 | 12 | 38 | — | 3 | 81 | 43 | ||||||||||||||||||||||
Home Equity | ||||||||||||||||||||||||||||||||
Pass | 1 | 4 | 3 | 12 | 5 | 15 | 490 | 57 | 587 | 604 | ||||||||||||||||||||||
Watch | — | — | — | — | — | — | — | 1 | 1 | 1 | ||||||||||||||||||||||
Substandard | — | — | — | — | — | 1 | 2 | 4 | 7 | 6 | ||||||||||||||||||||||
Other Consumer | ||||||||||||||||||||||||||||||||
Pass | 68 | 362 | 211 | 209 | 95 | 4 | 306 | 8 | 1,263 | 1,229 | ||||||||||||||||||||||
Watch | — | — | — | 1 | — | — | — | — | 1 | 2 | ||||||||||||||||||||||
Substandard | — | — | 1 | 1 | 1 | — | — | — | 3 | 5 | ||||||||||||||||||||||
Total Consumer Loans (1)(2) | $ | 176 | $ | 707 | $ | 388 | $ | 452 | $ | 190 | $ | 470 | $ | 875 | $ | 83 | $ | 3,341 | $ | 3,368 |
Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | December 31, 2020 | |||||||||||||||||||||||||||||
Term Loans | ||||||||||||||||||||||||||||||||
Amortized Cost Basis by Closing Year | ||||||||||||||||||||||||||||||||
As of December 31, 2021 | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | ||||||||||||||||||||||||||
Consumer Loans | (Dollars in millions) | |||||||||||||||||||||||||||||||
Residential First Mortgage | ||||||||||||||||||||||||||||||||
Pass | $ | 318 | $ | 197 | $ | 233 | $ | 89 | $ | 108 | $ | 407 | $ | 82 | $ | 10 | $ | 1,444 | $ | 2,205 | ||||||||||||
Watch | — | 1 | 12 | 3 | 4 | 11 | — | 3 | 34 | 21 | ||||||||||||||||||||||
Substandard | 1 | 3 | 7 | 8 | 2 | 21 | — | 1 | 43 | 25 | ||||||||||||||||||||||
Home Equity | ||||||||||||||||||||||||||||||||
Pass | 4 | 4 | 15 | 6 | 3 | 15 | 508 | 49 | 604 | 838 | ||||||||||||||||||||||
Watch | — | — | — | — | — | — | — | 1 | 1 | 13 | ||||||||||||||||||||||
Substandard | — | — | — | — | — | 1 | 2 | 3 | 6 | 3 | ||||||||||||||||||||||
Other Consumer | ||||||||||||||||||||||||||||||||
Pass | 380 | 227 | 226 | 101 | 1 | 5 | 284 | 5 | 1,229 | 1,000 | ||||||||||||||||||||||
Watch | — | — | 1 | 1 | — | — | — | — | 2 | 1 | ||||||||||||||||||||||
Substandard | 1 | 1 | 2 | 1 | — | — | — | — | 5 | 3 | ||||||||||||||||||||||
Total Consumer Loans (1)(2) | $ | 704 | $ | 433 | $ | 496 | $ | 209 | $ | 118 | $ | 460 | $ | 876 | $ | 72 | $ | 3,368 | $ | 4,109 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | |||||||||||||||||||||||||||||
FICO Band | Revolving Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||
Amortized Cost Basis by Closing Year | |||||||||||||||||||||||||||||
As of March 31, 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | |||||||||||||||||||||||
Consumer Loans | (Dollars in millions) | ||||||||||||||||||||||||||||
Residential First Mortgage | |||||||||||||||||||||||||||||
>750 | $ | 18 | $ | 155 | $ | 78 | $ | 95 | $ | 37 | $ | 246 | $ | 46 | $ | 4 | $ | 679 | |||||||||||
700-750 | 86 | 121 | 50 | 62 | 29 | 132 | 21 | 6 | 507 | ||||||||||||||||||||
<700 | 3 | 65 | 45 | 72 | 23 | 72 | 10 | 3 | 293 | ||||||||||||||||||||
Home Equity | |||||||||||||||||||||||||||||
>750 | — | 2 | 1 | 3 | 2 | 4 | 234 | 16 | 262 | ||||||||||||||||||||
700-750 | 1 | 2 | 1 | 5 | 2 | 6 | 205 | 26 | 248 | ||||||||||||||||||||
<700 | — | — | 1 | 4 | 1 | 6 | 53 | 20 | 85 | ||||||||||||||||||||
Other Consumer | |||||||||||||||||||||||||||||
>750 | 68 | 362 | 212 | 211 | 96 | 4 | 203 | 5 | 1,161 | ||||||||||||||||||||
700-750 | — | — | — | — | — | — | 84 | 2 | 86 | ||||||||||||||||||||
<700 | — | — | — | — | — | — | 19 | 1 | 20 | ||||||||||||||||||||
Total Consumer Loans (1) | $ | 176 | $ | 707 | $ | 388 | $ | 452 | $ | 190 | $ | 470 | $ | 875 | $ | 83 | $ | 3,341 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | |||||||||||||||||||||||||||||
FICO Band | Revolving Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||
Amortized Cost Basis by Closing Year | |||||||||||||||||||||||||||||
As of December 31, 2021 | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | |||||||||||||||||||||||
Consumer Loans | (Dollars in millions) | ||||||||||||||||||||||||||||
Residential First Mortgage | |||||||||||||||||||||||||||||
>750 | $ | 139 | $ | 94 | $ | 107 | $ | 40 | $ | 70 | $ | 212 | $ | 49 | $ | 5 | $ | 716 | |||||||||||
700-750 | 117 | 58 | 69 | 36 | 36 | 161 | 22 | 6 | 505 | ||||||||||||||||||||
<700 | 63 | 49 | 76 | 24 | 8 | 66 | 11 | 3 | 300 | ||||||||||||||||||||
Home Equity | |||||||||||||||||||||||||||||
>750 | 2 | 2 | 4 | 2 | 1 | 4 | 238 | 13 | 266 | ||||||||||||||||||||
700-750 | 2 | 1 | 6 | 2 | 1 | 6 | 210 | 22 | 250 | ||||||||||||||||||||
<700 | — | 1 | 5 | 2 | 1 | 6 | 62 | 18 | 95 | ||||||||||||||||||||
Other Consumer | |||||||||||||||||||||||||||||
>750 | 251 | 162 | 142 | 56 | 1 | 4 | 273 | 3 | 892 | ||||||||||||||||||||
700-750 | 128 | 62 | 79 | 39 | — | 1 | 7 | — | 316 | ||||||||||||||||||||
<700 | 2 | 4 | 8 | 8 | — | — | 4 | 2 | 28 | ||||||||||||||||||||
Total Consumer Loans (1) | $ | 704 | $ | 433 | $ | 496 | $ | 209 | $ | 118 | $ | 460 | $ | 876 | $ | 72 | $ | 3,368 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | |||||||||||||||||||||||||||||
LTV Band | Revolving Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||
Amortized Cost Basis by Closing Year | |||||||||||||||||||||||||||||
As of March 31, 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | |||||||||||||||||||||||
Consumer Loans | (Dollars in millions) | ||||||||||||||||||||||||||||
Residential First Mortgage | |||||||||||||||||||||||||||||
>90 | $ | 3 | $ | 88 | $ | 67 | $ | 129 | $ | 51 | $ | 28 | $ | — | $ | — | $ | 366 | |||||||||||
71-90 | 21 | 107 | 64 | 51 | 21 | 199 | — | — | 463 | ||||||||||||||||||||
55-70 | 69 | 79 | 23 | 26 | 8 | 131 | 2 | — | 338 | ||||||||||||||||||||
<55 | 14 | 67 | 19 | 23 | 9 | 92 | 75 | 13 | 312 | ||||||||||||||||||||
Home Equity | |||||||||||||||||||||||||||||
>90 | — | 1 | — | — | — | 6 | — | 1 | 8 | ||||||||||||||||||||
71-90 | 1 | 2 | 2 | 9 | 4 | 7 | 355 | 41 | 421 | ||||||||||||||||||||
<=70 | — | 1 | 1 | 3 | 1 | 3 | 137 | 20 | 166 | ||||||||||||||||||||
Total (1) | $ | 108 | $ | 345 | $ | 176 | $ | 241 | $ | 94 | $ | 466 | $ | 569 | $ | 75 | $ | 2,074 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | |||||||||||||||||||||||||||||
LTV Band | Revolving Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||
Amortized Cost Basis by Closing Year | |||||||||||||||||||||||||||||
As of December 31, 2021 | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | |||||||||||||||||||||||
Consumer Loans | (Dollars in millions) | ||||||||||||||||||||||||||||
Residential first mortgage | |||||||||||||||||||||||||||||
>90 | $ | 88 | $ | 74 | $ | 142 | $ | 53 | $ | 16 | $ | 16 | $ | — | $ | — | $ | 389 | |||||||||||
71-90 | 109 | 78 | 58 | 29 | 31 | 185 | — | — | 490 | ||||||||||||||||||||
55-70 | 69 | 26 | 27 | 9 | 36 | 163 | 2 | — | 332 | ||||||||||||||||||||
<55 | 53 | 23 | 25 | 9 | 31 | 75 | 80 | 14 | 310 | ||||||||||||||||||||
Home Equity | |||||||||||||||||||||||||||||
>90 | — | — | — | — | 1 | 7 | — | — | 8 | ||||||||||||||||||||
71-90 | 3 | 3 | 11 | 4 | 1 | 6 | 369 | 35 | 432 | ||||||||||||||||||||
<=70 | 1 | 1 | 4 | 2 | 1 | 3 | 141 | 18 | 171 | ||||||||||||||||||||
Total (1) | $ | 323 | $ | 205 | $ | 267 | $ | 106 | $ | 117 | $ | 455 | $ | 592 | $ | 67 | $ | 2,132 |
September 30, 2017 | |||||||||||||||||||
Pass | Watch | Special Mention | Substandard | Total Loans | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Consumer Loans | |||||||||||||||||||
Residential First Mortgage | $ | 2,614 | $ | 24 | $ | — | $ | 27 | $ | 2,665 | |||||||||
Home equity | 465 | 26 | — | 5 | 496 | ||||||||||||||
Other Consumer | 26 | — | — | — | 26 | ||||||||||||||
Total Consumer Loans | $ | 3,105 | $ | 50 | $ | — | $ | 32 | $ | 3,187 | |||||||||
Commercial Loans | |||||||||||||||||||
Commercial Real Estate | $ | 1,727 | $ | 30 | $ | — | $ | 3 | $ | 1,760 | |||||||||
Commercial and Industrial | 1,003 | 82 | — | 12 | 1,097 | ||||||||||||||
Warehouse | 1,119 | 40 | — | — | 1,159 | ||||||||||||||
Total Commercial Loans | $ | 3,849 | $ | 152 | $ | — | $ | 15 | $ | 4,016 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | December 31, 2021 | |||||||||||||||||||||||||||||||
Term Loans | Revolving Loans Amortized Cost Basis | Total | ||||||||||||||||||||||||||||||
Amortized Cost Basis by Closing Year | ||||||||||||||||||||||||||||||||
As of March 31, 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | ||||||||||||||||||||||||||
Commercial Loans | (Dollars in million) | |||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||
Pass | $ | 63 | $ | 546 | $ | 256 | $ | 437 | $ | 290 | $ | 633 | $ | 869 | $ | — | $ | 3,094 | $ | 3,071 | ||||||||||||
Watch | — | — | 7 | 1 | 13 | 83 | 32 | — | 136 | 128 | ||||||||||||||||||||||
Special mention | — | — | — | 2 | — | 22 | — | — | 24 | 2 | ||||||||||||||||||||||
Substandard | — | — | — | — | — | — | — | — | — | 22 | ||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||
Pass | 7 | 265 | 75 | 163 | 26 | 93 | 1,254 | — | 1,883 | 1,685 | ||||||||||||||||||||||
Watch | — | 4 | 12 | — | 9 | — | 14 | — | 39 | 71 | ||||||||||||||||||||||
Special mention | — | 9 | — | — | — | — | — | — | 9 | — | ||||||||||||||||||||||
Substandard | — | — | — | — | 18 | 2 | 28 | — | 48 | 70 | ||||||||||||||||||||||
Warehouse | ||||||||||||||||||||||||||||||||
Pass | 4,496 | — | — | — | — | — | — | — | 4,496 | 4,834 | ||||||||||||||||||||||
Watch | 145 | — | — | — | — | — | — | — | 145 | 140 | ||||||||||||||||||||||
Special mention | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Substandard | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total commercial loans | $ | 4,711 | $ | 824 | $ | 350 | $ | 603 | $ | 356 | $ | 833 | $ | 2,197 | $ | — | $ | 9,874 | $ | 10,023 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | December 31, 2020 | |||||||||||||||||||||||||||||||
Term Loans | Revolving Loans Amortized Cost Basis | Total | ||||||||||||||||||||||||||||||
Amortized Cost Basis by Closing Year | ||||||||||||||||||||||||||||||||
As of December 31, 2021 | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | ||||||||||||||||||||||||||
Commercial Loans | (Dollars in million) | |||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||
Pass | $ | 518 | $ | 257 | $ | 558 | $ | 313 | $ | 238 | $ | 402 | $ | 785 | $ | — | $ | 3,071 | $ | 2,805 | ||||||||||||
Watch | 2 | 5 | 1 | 13 | 64 | 35 | 8 | — | 128 | 166 | ||||||||||||||||||||||
Special mention | — | — | 2 | — | — | — | — | — | 2 | 53 | ||||||||||||||||||||||
Substandard | — | — | — | — | 22 | — | — | — | 22 | 37 | ||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||
Pass | 257 | 81 | 156 | 30 | 95 | 7 | 1,059 | — | 1,685 | 1,200 | ||||||||||||||||||||||
Watch | 4 | 4 | 10 | 9 | — | — | 44 | — | 71 | 106 | ||||||||||||||||||||||
Special mention | — | — | — | — | — | — | — | — | — | 24 | ||||||||||||||||||||||
Substandard | — | — | 17 | 18 | 2 | — | 33 | — | 70 | 52 | ||||||||||||||||||||||
Warehouse | ||||||||||||||||||||||||||||||||
Pass | 4,834 | — | — | — | — | — | — | — | 4,834 | 7,398 | ||||||||||||||||||||||
Watch | 140 | — | — | — | — | — | — | — | 140 | 260 | ||||||||||||||||||||||
Special mention | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Substandard | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total commercial loans | $ | 5,755 | $ | 347 | $ | 744 | $ | 383 | $ | 421 | $ | 444 | $ | 1,929 | $ | — | $ | 10,023 | $ | 12,101 |
December 31, 2016 | |||||||||||||||||||
Pass | Watch | Special Mention | Substandard | Total Loans | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Consumer Loans | |||||||||||||||||||
Residential First Mortgage | $ | 2,273 | $ | 23 | $ | — | $ | 31 | $ | 2,327 | |||||||||
Home equity | 386 | 46 | — | 11 | 443 | ||||||||||||||
Other Consumer | 28 | — | — | — | 28 | ||||||||||||||
Total Consumer Loans | $ | 2,687 | $ | 69 | $ | — | $ | 42 | $ | 2,798 | |||||||||
Commercial Loans | |||||||||||||||||||
Commercial Real Estate | $ | 1,225 | $ | 27 | $ | 3 | $ | 6 | $ | 1,261 | |||||||||
Commercial and Industrial | 678 | 59 | 21 | 11 | 769 | ||||||||||||||
Warehouse | 1,168 | 16 | 53 | — | 1,237 | ||||||||||||||
Total Commercial Loans | $ | 3,071 | $ | 102 | $ | 77 | $ | 17 | $ | 3,267 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(Dollars in millions) | |||||||||||
Balance at beginning of period | $ | 392 | $ | 329 | |||||||
Additions from loans sold with servicing retained | 79 | 65 | |||||||||
Purchases | 13 | — | |||||||||
Reductions from sales | — | — | |||||||||
Decrease in MSR fair value due to pay-offs, pay-downs, run-off, model changes, and other (1) | (8) | (39) | |||||||||
Changes in estimates of fair value due to interest rate risk (1) (2) | 47 | 73 | |||||||||
Fair value of MSRs at end of period | $ | 523 | $ | 428 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Balance at beginning of period | $ | 184 | $ | 301 | $ | 335 | $ | 296 | |||||||
Additions from loans sold with servicing retained | 75 | 51 | 178 | 173 | |||||||||||
Reductions from sales | (4 | ) | (17 | ) | (260 | ) | (41 | ) | |||||||
Changes in fair value due to (1) | |||||||||||||||
Decrease in MSR due to payoffs, pay-downs and run-off | (5 | ) | (19 | ) | (15 | ) | (45 | ) | |||||||
Changes in estimates of fair value (2) | (4 | ) | (14 | ) | 8 | (81 | ) | ||||||||
Balance at end of period | $ | 246 | $ | 302 | $ | 246 | $ | 302 |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
Fair value | Fair value | ||||||||||||||||||||||
Actual | 10% adverse change | 20% adverse change | Actual | 10% adverse change | 20% adverse change | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Option adjusted spread | 6.59 | % | $ | 513 | $ | 503 | 7.12 | % | $ | 383 | $ | 374 | |||||||||||
Constant prepayment rate | 8.69 | % | 506 | 490 | 9.24 | % | 373 | 355 | |||||||||||||||
Weighted average cost to service per loan | $ | 79.25 | 518 | 512 | $ | 79.38 | 387 | 383 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Fair value after | Fair value after | ||||||||||||||||||||||
Actual | 10% adverse change | 20% adverse change | Actual | 10% adverse change | 20% adverse change | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Option adjusted spread | 5.81 | % | $ | 242 | $ | 238 | 7.78 | % | $ | 326 | $ | 318 | |||||||||||
Constant prepayment rate | 9.64 | % | 238 | 231 | 16.68 | % | 322 | 311 | |||||||||||||||
Weighted average annual cost to service per loan | $ | 71.00 | 244 | 241 | $ | 68.18 | 330 | 326 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(Dollars in millions) | |||||||||||
Net return (loss) on mortgage servicing rights | |||||||||||
Servicing fees, ancillary income and late fees (1) | $ | 30 | $ | 31 | |||||||
Decreases in MSR fair value due to pay-offs, pay-downs, run-off, model changes, and other | (8) | (39) | |||||||||
Changes in fair value due to interest rate risk | 47 | 73 | |||||||||
Loss on MSR derivatives (2) | (41) | (65) | |||||||||
Net transaction costs | 1 | — | |||||||||
Total return included in net return on mortgage servicing rights | $ | 29 | $ | — |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Net return (loss) on mortgage servicing rights | |||||||||||||||
Servicing fees, ancillary income and late fees (1) | $ | 14 | $ | 22 | $ | 43 | $ | 60 | |||||||
Changes in fair value | (9 | ) | (33 | ) | (7 | ) | (126 | ) | |||||||
Net return (loss) on MSR derivatives (2) | — | (1 | ) | (3 | ) | 44 | |||||||||
Net transaction costs | 1 | 1 | (7 | ) | 1 | ||||||||||
Total net return (loss) on mortgage servicing rights | $ | 6 | $ | (11 | ) | $ | 26 | $ | (21 | ) |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(Dollars in millions) | |||||||||||
Loan administration income on mortgage loans subserviced | |||||||||||
Servicing fees, ancillary income and late fees (1) | $ | 37 | $ | 32 | |||||||
Charges on subserviced custodial balances (2) | (2) | (3) | |||||||||
Other servicing charges | (2) | (3) | |||||||||
Total income on mortgage loans subserviced, included in loan administration | $ | 33 | $ | 26 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Loan administration income on mortgage loans subserviced | |||||||||||||||
Servicing fees, ancillary income and late fees (1) | $ | 9 | $ | 7 | $ | 26 | $ | 21 | |||||||
Other servicing charges | (4 | ) | (3 | ) | (10 | ) | (7 | ) | |||||||
Total income on mortgage loans subserviced, included in loan administration | $ | 5 | $ | 4 | $ | 16 | $ | 14 |
March 31, 2022 (1) | |||||||||||
Notional Amount | Fair Value (2) | Expiration Dates | |||||||||
(Dollars in millions) | |||||||||||
Derivatives in cash flow hedge relationships: | |||||||||||
Assets | |||||||||||
Interest rate swaps on commercial loans | $ | 2,000 | $ | 2 | 2025 | ||||||
Derivatives in fair value hedge relationships: | |||||||||||
Assets | |||||||||||
Interest rate swaps on AFS securities | $ | 100 | $ | — | 2022 | ||||||
Interest rate swaps on subordinated debt | 150 | — | 2025 | ||||||||
Total | $ | 250 | $ | — | |||||||
Derivatives not designated as hedging instruments: | |||||||||||
Assets | |||||||||||
Futures | $ | 1,053 | $ | 2 | 2022-2023 | ||||||
Mortgage-backed securities forwards | 11,684 | 200 | 2022 | ||||||||
Rate lock commitments | 3,259 | 23 | 2022 | ||||||||
Interest rate swaps and swaptions | 5,064 | 105 | 2022-2052 | ||||||||
Total | $ | 21,060 | $ | 330 | |||||||
Liabilities | |||||||||||
Mortgage-backed securities forwards | $ | 4,629 | $ | 45 | 2022 | ||||||
Rate lock commitments | 2,112 | 27 | 2022 | ||||||||
Interest rate swaps | 1,771 | 22 | 2022-2032 | ||||||||
Total | $ | 8,512 | $ | 94 |
December 31, 2021 (1) | ||||||||||||||||||||
September 30, 2017 (1) | Notional Amount | Fair Value (2) | Expiration Dates | |||||||||||||||||
Notional Amount | Fair Value (2) | Expiration Dates | (Dollars in millions) | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Derivatives in cash flow hedge relationships: | Derivatives in cash flow hedge relationships: | |||||||||||||||||||
Liabilities | Liabilities | |||||||||||||||||||
Interest rate swaps on custodial deposits | Interest rate swaps on custodial deposits | $ | 800 | — | 2026-2027 | |||||||||||||||
Derivatives in fair value hedge relationships: | Derivatives in fair value hedge relationships: | |||||||||||||||||||
Assets | Assets | |||||||||||||||||||
Interest rate swaps on FHLB advances | $ | 830 | $ | 1 | 2023-2026 | |||||||||||||||
Interest rate swaps on AFS securities | Interest rate swaps on AFS securities | $ | 85 | $ | — | 2022 | ||||||||||||||
Total derivative assets | Total derivative assets | $ | 85 | $ | — | |||||||||||||||
Liabilities | Liabilities | |||||||||||||||||||
Interest rate swaps on HFI residential first mortgages | Interest rate swaps on HFI residential first mortgages | $ | 100 | $ | — | 2024 | ||||||||||||||
Interest rate swaps on AFS securities | Interest rate swaps on AFS securities | 350 | — | 2024-2025 | ||||||||||||||||
Total derivative liabilities | Total derivative liabilities | $ | 450 | $ | — | |||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | |||||||||||||||||||
Assets | Assets | |||||||||||||||||||
Futures | $ | 1,091 | $ | — | 2017-2022 | Futures | $ | 1,117 | $ | — | 2022-2023 | |||||||||
Mortgage backed securities forwards | 4,740 | 12 | 2017 | |||||||||||||||||
Mortgage-backed securities forwards | Mortgage-backed securities forwards | 4,008 | 11 | 2022 | ||||||||||||||||
Rate lock commitments | 4,478 | 33 | 2017 | Rate lock commitments | 5,169 | 54 | 2022 | |||||||||||||
Interest rate swaps and swaptions | 1,331 | 14 | 2017-2047 | Interest rate swaps and swaptions | 4,070 | 76 | 2022-2031 | |||||||||||||
Total derivative assets | $ | 11,640 | $ | 59 | ||||||||||||||||
Total | Total | $ | 14,364 | $ | 141 | |||||||||||||||
Liabilities | Liabilities | |||||||||||||||||||
Futures | $ | 671 | $ | 3 | 2017-2022 | |||||||||||||||
Mortgage backed securities forwards | 2,089 | 4 | 2017 | |||||||||||||||||
Mortgage-backed securities forwards | Mortgage-backed securities forwards | $ | 4,023 | $ | 14 | 2022 | ||||||||||||||
Rate lock commitments | 326 | 1 | 2017 | Rate lock commitments | 370 | 1 | 2022 | |||||||||||||
Interest rate swaps | 920 | 2 | 2017-2032 | |||||||||||||||||
Total derivative liabilities | $ | 4,006 | $ | 10 | ||||||||||||||||
Interest rate swaps and swaptions | Interest rate swaps and swaptions | 1,493 | 5 | 2022-2031 | ||||||||||||||||
Total | Total | $ | 5,886 | $ | 20 |
December 31, 2016 | |||||||||
Notional Amount | Fair Value (2) | Expiration Dates | |||||||
(Dollars in millions) | |||||||||
Derivatives designated as hedging instruments: | |||||||||
Assets | |||||||||
Interest rate swaps on FHLB advances | $ | 600 | $ | 20 | 2023-2026 | ||||
Liabilities | |||||||||
Interest rate swaps on FHLB advances | $ | 230 | $ | 1 | 2025-2026 | ||||
Derivatives not designated as hedging instruments: | |||||||||
Assets | |||||||||
Futures | $ | 4,621 | $ | 2 | 2017-2020 | ||||
Mortgage backed securities forwards | 3,776 | 43 | 2017 | ||||||
Rate lock commitments | 3,517 | 24 | 2017 | ||||||
Interest rate swaps and swaptions | 2,231 | 35 | 2017-2033 | ||||||
Total derivative assets | $ | 14,145 | $ | 104 | |||||
Liabilities | |||||||||
Futures | $ | 134 | $ | — | 2017 | ||||
Mortgage backed securities forwards | 1,893 | 11 | 2017 | ||||||
Rate lock commitments | 598 | 6 | 2017 | ||||||
Interest rate swaps | 1,129 | 37 | 2017-2047 | ||||||
Total derivative liabilities | $ | 3,754 | $ | 54 |
Gross Amounts Netted in the Statements of Financial Condition | Net Amount Presented in the Statements of Financial Condition | Gross Amounts Not Offset in the Statements of Financial Condition | |||||||||||||||
Gross Amount | Financial Instruments | Cash Collateral | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
March 31, 2022 | |||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||
Assets | |||||||||||||||||
Interest rate swaps on AFS securities | $ | — | $ | — | $ | — | $ | — | $ | 2 | |||||||
Interest rate swaps on subordinated debt | — | — | — | — | 3 | ||||||||||||
Interest rate swaps on commercial loans | 2 | — | 2 | — | 31 | ||||||||||||
Total derivative assets | $ | 2 | $ | — | $ | 2 | $ | — | $ | 36 | |||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Assets | |||||||||||||||||
Mortgage-backed securities forwards | $ | 200 | $ | — | $ | 200 | $ | — | $ | 142 | |||||||
Interest rate swaps and swaptions (1) | 105 | — | 105 | — | 52 | ||||||||||||
Total derivative assets | $ | 305 | $ | — | $ | 305 | $ | — | $ | 194 | |||||||
Liabilities | |||||||||||||||||
Mortgage-backed securities forwards | $ | 45 | $ | — | $ | 45 | $ | — | $ | 11 | |||||||
Interest rate swaps | 22 | — | 22 | — | 30 | ||||||||||||
Total derivative liabilities | $ | 67 | $ | — | $ | 67 | $ | — | $ | 41 | |||||||
December 31, 2021 | |||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||
Assets | |||||||||||||||||
Interest rate swaps on AFS securities | $ | — | $ | — | $ | — | $ | — | $ | 1 | |||||||
Total derivative assets | $ | — | $ | — | $ | — | $ | — | $ | 1 | |||||||
Liabilities | |||||||||||||||||
Interest rate swaps on AFS securities | $ | — | $ | — | $ | — | $ | — | $ | 4 | |||||||
Interest rate swaps on HFI residential first mortgages | — | — | — | — | 1 | ||||||||||||
Interest rate swaps on custodial deposits | — | — | — | — | 9 | ||||||||||||
Total derivative liabilities | $ | — | $ | — | $ | — | $ | — | $ | 14 | |||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Assets | |||||||||||||||||
Mortgage-backed securities forwards | $ | 10 | $ | — | $ | 10 | $ | — | $ | 12 | |||||||
Interest rate swaptions (1) | 77 | — | 77 | — | 17 | ||||||||||||
Total derivative assets | $ | 87 | $ | — | $ | 87 | $ | — | $ | 29 | |||||||
Liabilities | |||||||||||||||||
Mortgage-backed securities forwards | $ | 14 | $ | — | $ | 14 | $ | — | $ | 9 | |||||||
Interest rate swaps | 6 | — | 6 | — | 24 | ||||||||||||
Total derivative liabilities | $ | 20 | $ | — | $ | 20 | $ | — | $ | 33 |
Gross Amounts Netted in the Statement of Financial Position | Net Amount Presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||
Gross Amount | Financial Instruments | Cash Collateral | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||||
September 30, 2017 | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Assets | |||||||||||||||||||
Interest rate swaps on FHLB advances (1) | $ | 1 | $ | — | $ | 1 | $ | — | $ | 23 | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Assets | |||||||||||||||||||
Mortgage backed securities forwards | $ | 12 | $ | — | $ | 12 | $ | — | $ | 2 | |||||||||
Interest rate swaps and swaptions (1) | 14 | — | 14 | — | 11 | ||||||||||||||
Total derivative assets | $ | 26 | $ | — | $ | 26 | $ | — | $ | 13 | |||||||||
Liabilities | |||||||||||||||||||
Futures | $ | 3 | $ | — | $ | 3 | $ | — | $ | 4 | |||||||||
Mortgage backed securities forwards | 4 | — | 4 | — | 10 | ||||||||||||||
Interest rate swaps (1) | 2 | — | 2 | — | 9 | ||||||||||||||
Total derivative liabilities | $ | 9 | $ | — | $ | 9 | $ | — | $ | 23 | |||||||||
December 31, 2016 | |||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Assets | |||||||||||||||||||
Interest rate swaps on FHLB advances (1) | $ | 20 | $ | 1 | $ | 19 | $ | — | $ | — | |||||||||
Liabilities | |||||||||||||||||||
Interest rate swaps on FHLB advances (1) | $ | 1 | $ | 1 | $ | — | $ | — | $ | 33 | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Assets | |||||||||||||||||||
Futures | $ | 2 | $ | — | $ | 2 | $ | — | $ | — | |||||||||
Mortgage-backed securities forwards | 43 | — | 43 | — | 44 | ||||||||||||||
Interest rate swaps and swaptions (1) | 35 | — | 35 | — | 30 | ||||||||||||||
Total derivative assets | $ | 80 | $ | — | $ | 80 | $ | — | $ | 74 | |||||||||
Liabilities | |||||||||||||||||||
Futures | $ | — | $ | — | $ | — | $ | — | $ | 1 | |||||||||
Mortgage-backed securities forwards | 11 | — | 11 | — | — | ||||||||||||||
Interest rate swaps (1) | 37 | — | 37 | — | 20 | ||||||||||||||
Total derivative liabilities | $ | 48 | $ | — | $ | 48 | $ | — | $ | 21 |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | Location of gain (loss) | |||||||||||||||||||||||||
Futures | Net return on mortgage servicing rights | $ | 3 | $ | — | |||||||||||||||||||||
Interest rate swaps and swaptions | Net return on mortgage servicing rights | (13) | (47) | |||||||||||||||||||||||
Mortgage-backed securities forwards | Net return on mortgage servicing rights | (31) | (18) | |||||||||||||||||||||||
Rate lock commitments and MSR forwards | Net gain on loan sales | 104 | 162 | |||||||||||||||||||||||
Interest rate swaps (1) | Other noninterest income | 2 | 1 | |||||||||||||||||||||||
Total derivative gain (loss) | $ | 65 | $ | 98 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(Dollars in millions) | ||||||||||||||||
Derivatives not designated as hedging instruments: | Location of Gain/(Loss) | |||||||||||||||
Futures | Net return (loss) on mortgage servicing rights | $ | (1 | ) | $ | 4 | $ | (1 | ) | $ | 8 | |||||
Interest rate swaps and swaptions | Net return (loss) on mortgage servicing rights | (2 | ) | (7 | ) | (7 | ) | 21 | ||||||||
Mortgage-backed securities forwards | Net return (loss) on mortgage servicing rights | 2 | 2 | 5 | 15 | |||||||||||
Rate lock commitments and forward agency and loan sales | Net gain (loss) on loan sales | (8 | ) | 15 | (16 | ) | 14 | |||||||||
Rate lock commitments | Other noninterest income | — | — | — | 1 | |||||||||||
Interest rate swaps (1) | Other noninterest income | — | 2 | 1 | 3 | |||||||||||
Total derivative gain (loss) | $ | (9 | ) | $ | 16 | $ | (18 | ) | $ | 62 |
September 30, 2017 | December 31, 2016 | ||||||||||||
Amount | Rate | Amount | Rate | ||||||||||
(Dollars in millions) | |||||||||||||
Short-term fixed rate term advances | $ | 4,065 | 1.14 | % | $ | 1,780 | 0.62 | % | |||||
Total Short-term Federal Home Loan Bank advances | 4,065 | 1,780 | |||||||||||
Long-term LIBOR adjustable advances | 1,025 | 1.49 | % | 1,025 | 1.12 | % | |||||||
Long-term fixed rate advances (1) | 275 | 1.41 | % | 175 | 1.12 | % | |||||||
Total Long-term Federal Home Loan Bank advances | 1,300 | 1,200 | |||||||||||
Total Federal Home Loan Bank advances | $ | 5,365 | $ | 2,980 |
March 31, 2022 | December 31, 2021 | ||||||||||||||||
Amount | Rate | Amount | Rate | ||||||||||||||
(Dollars in millions) | |||||||||||||||||
Short-term fixed rate term advances | $ | — | — | % | $ | 1,600 | 0.19 | % | |||||||||
Other short-term borrowings | 200 | 0.42 | % | 280 | 0.11 | % | |||||||||||
Total short-term Federal Home Loan Bank advances and other borrowings | 200 | 1,880 | |||||||||||||||
Long-term fixed rate advances | 1,200 | 1.03 | % | 1,400 | 0.90 | % | |||||||||||
Total Federal Home Loan Bank advances and other borrowings | $ | 1,400 | $ | 3,280 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | ||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2022 | 2021 | |||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | |||||||||||||||||||||||||
Maximum outstanding at any month end | $ | 5,365 | $ | 3,182 | $ | 5,365 | $ | 3,557 | Maximum outstanding at any month end | $ | 2,200 | $ | 4,737 | |||||||||||||
Average outstanding balance | 5,043 | 2,649 | 4,239 | 2,777 | Average outstanding balance | 1,918 | 3,979 | |||||||||||||||||||
Average remaining borrowing capacity | 1,182 | 1,626 | 1,297 | 1,106 | Average remaining borrowing capacity | 4,451 | 5,484 | |||||||||||||||||||
Weighted average interest rate | 1.36 | % | 1.26 | % | 1.26 | % | 1.25 | % | Weighted average interest rate | 0.72 | % | 0.43 | % |
March 31, 2022 | |||||
(Dollars in millions) | |||||
2022 | $ | 400 | |||
2023 | 500 | ||||
2024 | 100 | ||||
2025 | — | ||||
Thereafter | 400 | ||||
Total | $ | 1,400 |
September 30, 2017 | |||
(Dollars in millions) | |||
2017 | $ | 4,065 | |
2018 | 125 | ||
2019 | 50 | ||
2020 | — | ||
Thereafter | 1,125 | ||
Total | $ | 5,365 |
March 31, 2022 | December 31, 2021 | ||||||||||||||||
Amount | Interest Rate | Amount | Interest Rate | ||||||||||||||
(Dollars in millions) | |||||||||||||||||
Senior Notes | |||||||||||||||||
Senior notes, settled 2021 | $ | — | — | % | $ | — | — | % | |||||||||
Subordinated Notes | |||||||||||||||||
Notes, matures 2030 | 149 | 4.125 | % | 149 | 4.125 | % | |||||||||||
Trust Preferred Securities | |||||||||||||||||
Floating Three Month LIBOR Plus: | |||||||||||||||||
3.25%, matures 2032 | 26 | 4.22 | % | 26 | 3.47 | % | |||||||||||
3.25%, matures 2033 | 26 | 3.49 | % | 26 | 3.37 | % | |||||||||||
3.25%, matures 2033 | 26 | 4.25 | % | 26 | 3.47 | % | |||||||||||
2.00%, matures 2035 | 26 | 2.24 | % | 26 | 2.12 | % | |||||||||||
2.00%, matures 2035 | 26 | 2.24 | % | 26 | 2.12 | % | |||||||||||
1.75%, matures 2035 | 51 | 2.58 | % | 51 | 1.95 | % | |||||||||||
1.50%, matures 2035 | 25 | 1.74 | % | 25 | 1.62 | % | |||||||||||
1.45%, matures 2037 | 25 | 2.28 | % | 25 | 1.65 | % | |||||||||||
2.50%, matures 2037 | 16 | 3.33 | % | 16 | 2.70 | % | |||||||||||
Total Trust Preferred Securities | 247 | 247 | |||||||||||||||
Total other long-term debt | $ | 396 | $ | 396 |
September 30, 2017 | December 31, 2016 | ||||||||||||
Amount | Interest Rate | Amount | Interest Rate | ||||||||||
(Dollars in millions) | |||||||||||||
Senior Notes | |||||||||||||
Senior notes, matures 2021 | $ | 246 | 6.125 | % | $ | 246 | 6.125 | % | |||||
Trust Preferred Securities | |||||||||||||
Floating Three Month LIBOR | |||||||||||||
Plus 3.25%, matures 2032 | $ | 26 | 4.58 | % | $ | 26 | 4.25 | % | |||||
Plus 3.25%, matures 2033 | 26 | 4.55 | % | 26 | 4.13 | % | |||||||
Plus 3.25%, matures 2033 | 26 | 4.55 | % | 26 | 4.25 | % | |||||||
Plus 2.00%, matures 2035 | 26 | 3.30 | % | 26 | 2.88 | % | |||||||
Plus 2.00%, matures 2035 | 26 | 3.30 | % | 26 | 2.88 | % | |||||||
Plus 1.75%, matures 2035 | 51 | 3.07 | % | 51 | 2.71 | % | |||||||
Plus 1.50%, matures 2035 | 25 | 2.80 | % | 25 | 2.38 | % | |||||||
Plus 1.45%, matures 2037 | 25 | 2.77 | % | 25 | 2.41 | % | |||||||
Plus 2.50%, matures 2037 | 16 | 3.82 | % | 16 | 3.46 | % | |||||||
Total Trust Preferred Securities | 247 | 247 | |||||||||||
Total other long-term debt | $ | 493 | $ | 493 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Balance at beginning of period | $ | 20 | $ | 36 | $ | 27 | $ | 40 | |||||||
Provision (benefit) | |||||||||||||||
Gain on sale reduction for representation and warranty liability | 1 | 1 | 3 | 4 | |||||||||||
Representation and warranty provision (benefit) | (4 | ) | (6 | ) | (11 | ) | (12 | ) | |||||||
Total | (3 | ) | (5 | ) | (8 | ) | (8 | ) | |||||||
(Charge-offs) recoveries, net | (1 | ) | 1 | (3 | ) | — | |||||||||
Balance at end of period | $ | 16 | $ | 32 | $ | 16 | $ | 32 |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Investment Securities | |||||||||||||||||||||||
Beginning balance | $ | 15 | $ | 52 | |||||||||||||||||||
Unrealized loss | (77) | (20) | |||||||||||||||||||||
Less: Tax benefit | (19) | (5) | |||||||||||||||||||||
Net unrealized loss | (58) | (15) | |||||||||||||||||||||
Other comprehensive loss, net of tax | (58) | (15) | |||||||||||||||||||||
Ending balance | $ | (43) | $ | 37 | |||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||
Beginning balance | $ | 20 | $ | (5) | |||||||||||||||||||
Unrealized gain | 29 | 26 | |||||||||||||||||||||
Less: Tax provision | 8 | 5 | |||||||||||||||||||||
Net unrealized gain | 21 | 21 | |||||||||||||||||||||
Reclassifications out of AOCI (1) | — | 1 | |||||||||||||||||||||
Other comprehensive income, net of tax | 21 | 22 | |||||||||||||||||||||
Ending balance | $ | 41 | $ | 17 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Investment securities | |||||||||||||||
Beginning balance | $ | (6 | ) | $ | 21 | $ | (8 | ) | $ | 5 | |||||
Unrealized gain | — | 1 | 2 | 27 | |||||||||||
Less: Tax provision | — | — | 1 | 10 | |||||||||||
Net unrealized gain | — | 1 | 1 | 17 | |||||||||||
Reclassifications out of AOCI (1) | 1 | (8 | ) | 3 | (8 | ) | |||||||||
Less: Tax (benefit) provision | — | (3 | ) | 1 | (3 | ) | |||||||||
Net unrealized gain (loss) reclassified out of AOCI | 1 | (5 | ) | 2 | (5 | ) | |||||||||
Other comprehensive income/(loss), net of tax | 1 | (4 | ) | 3 | 12 | ||||||||||
Ending balance | $ | (5 | ) | $ | 17 | $ | (5 | ) | $ | 17 | |||||
Cash Flow Hedges | |||||||||||||||
Beginning balance | $ | (3 | ) | $ | (40 | ) | $ | 1 | $ | (3 | ) | ||||
Unrealized gain (loss) | — | 2 | (2 | ) | (61 | ) | |||||||||
Less: Tax (benefit) provision | — | 2 | (1 | ) | (17 | ) | |||||||||
Net unrealized (loss) | — | — | (1 | ) | (44 | ) | |||||||||
Reclassifications out of AOCI (1) | — | 3 | (5 | ) | 10 | ||||||||||
Less: Tax (benefit) | — | — | (2 | ) | — | ||||||||||
Net unrealized gain (loss) reclassified out of AOCI | — | 3 | (3 | ) | 10 | ||||||||||
Other comprehensive income/(loss), net of tax | — | 3 | (4 | ) | (34 | ) | |||||||||
Ending balance | $ | (3 | ) | $ | (37 | ) | $ | (3 | ) | $ | (37 | ) |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(Dollars in millions, except share data) | |||||||||||||||||||||||
Net income applicable to common shareholders | $ | 53 | $ | 149 | |||||||||||||||||||
Weighted Average Shares | |||||||||||||||||||||||
Weighted average common shares outstanding | 53,219,866 | 52,675,562 | |||||||||||||||||||||
Effect of dilutive securities | |||||||||||||||||||||||
Stock-based awards | 358,135 | 622,241 | |||||||||||||||||||||
Weighted average diluted common shares | $ | 53,578,001 | $ | 53,297,803 | |||||||||||||||||||
Earnings per common share | |||||||||||||||||||||||
Basic earnings per common share | $ | 0.99 | $ | 2.83 | |||||||||||||||||||
Effect of dilutive securities | |||||||||||||||||||||||
Stock-based awards | — | (0.03) | |||||||||||||||||||||
Diluted earnings per common share | $ | 0.99 | $ | 2.80 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in millions, except share data) | |||||||||||||||
Net income | $ | 40 | $ | 57 | $ | 108 | $ | 143 | |||||||
Deferred cumulative preferred stock dividends | — | (2 | ) | — | (18 | ) | |||||||||
Net income applicable to common stockholders | $ | 40 | $ | 55 | $ | 108 | $ | 125 | |||||||
Weighted average shares | |||||||||||||||
Weighted average common shares outstanding | 57,162,025 | 56,580,238 | 57,062,696 | 56,556,188 | |||||||||||
Effect of dilutive securities | |||||||||||||||
May Investor Warrants | — | 364,791 | 16,383 | 339,893 | |||||||||||
Stock-based awards | 1,024,568 | 988,777 | 1,054,217 | 831,181 | |||||||||||
Weighted average diluted common shares | 58,186,593 | 57,933,806 | 58,133,296 | 57,727,262 | |||||||||||
Earnings per common share | |||||||||||||||
Basic earnings per common share | $ | 0.71 | $ | 0.98 | $ | 1.90 | $ | 2.21 | |||||||
Effect of dilutive securities | |||||||||||||||
May Investor Warrants | — | — | — | (0.02 | ) | ||||||||||
Stock-based awards | (0.01 | ) | (0.02 | ) | (0.04 | ) | (0.03 | ) | |||||||
Diluted earnings per common share | $ | 0.70 | $ | 0.96 | $ | 1.86 | $ | 2.16 |
Three Months Ended March 31, 2022 | |||||||||||||||||
Shares | Weighted — Average Grant-Date Fair Value per Share | ||||||||||||||||
Restricted Stock and Restricted Stock Units | |||||||||||||||||
Non-vested balance at beginning of period | 600,573 | $ | 36.61 | ||||||||||||||
Granted | 134,066 | 36.62 | |||||||||||||||
Vested | (43,756) | 40.46 | |||||||||||||||
Canceled and forfeited | (19,493) | 33.16 | |||||||||||||||
Non-vested balance at end of period | 671,390 | $ | 36.47 |
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | ||||||||||||
Shares | Weighted — Average Grant-Date Fair Value per Share | Shares | Weighted — Average Grant-Date Fair Value per Share | ||||||||||
Restricted Stock | |||||||||||||
Non-vested balance at beginning of period | 1,455,327 | $ | 19.88 | 1,461,910 | $ | 17.68 | |||||||
Granted | 28,750 | 23.57 | 355,088 | 28.02 | |||||||||
Vested | (298 | ) | 16.77 | (214,239 | ) | 18.95 | |||||||
Canceled and forfeited | (15,952 | ) | 23.31 | (134,932 | ) | 18.57 | |||||||
Non-vested balance at end of period | 1,467,827 | $ | 19.92 | 1,467,827 | $ | 19.92 |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Income before income taxes | $ | 68 | $ | 194 | |||||||||||||||||||
Provision for income taxes | 15 | 45 | |||||||||||||||||||||
Effective tax provision rate | 22.0 | % | 23.0 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Provision for income taxes | $ | 20 | $ | 30 | $ | 52 | $ | 73 | |||||||
Effective tax provision rate | 32.4 | % | 34.3 | % | 32.3 | % | 33.8 | % |
Flagstar Bancorp | Actual | For Capital Adequacy Purposes | Well-Capitalized Under Prompt Corrective Action Provisions | |||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||
Tier 1 capital (to adjusted avg. total assets) | $ | 2,843 | 11.83 | % | $ | 961 | 4.0 | % | $ | 1,201 | 5.0 | % | ||||||||||||||
Common equity Tier 1 capital (to RWA) | 2,603 | 13.89 | % | 843 | 4.5 | % | 1,218 | 6.5 | % | |||||||||||||||||
Tier 1 capital (to RWA) | 2,843 | 15.17 | % | 1,124 | 6.0 | % | 1,499 | 8.0 | % | |||||||||||||||||
Total capital (to RWA) | 3,110 | 16.59 | % | 1,499 | 8.0 | % | 1,874 | 10.0 | % | |||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Tier 1 capital (to adjusted avg. total assets) | $ | 2,798 | 10.54 | % | $ | 1,062 | 4.0 | % | $ | 1,327 | 5.0 | % | ||||||||||||||
Common equity Tier 1 capital (to RWA) | 2,558 | 13.19 | % | 873 | 4.5 | % | 1,261 | 6.5 | % | |||||||||||||||||
Tier 1 capital (to RWA) | 2,798 | 14.43 | % | 1,164 | 6.0 | % | 1,552 | 8.0 | % | |||||||||||||||||
Total capital (to RWA) | 3,080 | 15.88 | % | 1,552 | 8.0 | % | 1,940 | 10.0 | % |
Flagstar Bank | Actual | For Capital Adequacy Purposes | Well-Capitalized Under Prompt Corrective Action Provisions | |||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||
Tier 1 capital (to adjusted avg. total assets) | $ | 2,758 | 11.50 | % | $ | 959 | 4.0 | % | $ | 1,199 | 5.0 | % | ||||||||||||||
Common equity Tier 1 capital (to RWA) | 2,758 | 14.73 | % | 843 | 4.5 | % | 1,217 | 6.5 | % | |||||||||||||||||
Tier 1 capital (to RWA) | 2,758 | 14.73 | % | 1,124 | 6.0 | % | 1,498 | 8.0 | % | |||||||||||||||||
Total capital (to RWA) | 2,875 | 15.35 | % | 1,498 | 8.0 | % | 1,873 | 10.0 | % | |||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Tier 1 capital (to adjusted avg. total assets) | $ | 2,706 | 10.21 | % | $ | 1,060 | 4.0 | % | $ | 1,325 | 5.0 | % | ||||||||||||||
Common equity Tier 1 capital (to RWA) | 2,706 | 13.96 | % | 872 | 4.5 | % | 1,260 | 6.5 | % | |||||||||||||||||
Tier 1 capital (to RWA) | 2,706 | 13.96 | % | 1,163 | 6.0 | % | 1,551 | 8.0 | % | |||||||||||||||||
Total capital (to RWA) | 2,839 | 14.65 | % | 1,551 | 8.0 | % | 1,938 | 10.0 | % |
Bancorp | Actual | For Capital Adequacy Purposes | Well Capitalized Under Prompt��Corrective Action Provisions | ||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
(Dollars in millions) | |||||||||||||||||
September 30, 2017 | |||||||||||||||||
Tangible capital (to adjusted avg. total assets) | $ | 1,423 | 8.80 | % | N/A | N/A | N/A | N/A | |||||||||
Tier 1 leverage (to adjusted avg. total assets) | 1,423 | 8.80 | % | $ | 647 | 4.00 | % | $ | 808 | 5.00 | % | ||||||
Common equity Tier 1 capital (to RWA) | 1,208 | 11.65 | % | 467 | 4.50 | % | 674 | 6.50 | % | ||||||||
Tier 1 capital (to RWA) | 1,423 | 13.72 | % | 622 | 6.00 | % | 830 | 8.00 | % | ||||||||
Total capital (to RWA) | 1,554 | 14.99 | % | 830 | 8.00 | % | 1,037 | 10.00 | % | ||||||||
December 31, 2016 | |||||||||||||||||
Tangible capital (to adjusted avg. total assets) | $ | 1,256 | 8.88 | % | N/A | N/A | N/A | N/A | |||||||||
Tier 1 leverage (to adjusted avg. total assets) | 1,256 | 8.88 | % | $ | 566 | 4.0 | % | $ | 707 | 5.0 | % | ||||||
Common equity Tier 1 capital (to RWA) | 1,084 | 13.06 | % | 374 | 4.5 | % | 540 | 6.5 | % | ||||||||
Tier 1 capital (to RWA) | 1,256 | 15.12 | % | 498 | 6.0 | % | 664 | 8.0 | % | ||||||||
Total capital (to RWA) | 1,363 | 16.41 | % | 664 | 8.0 | % | 830 | 10.0 | % |
Bank | Actual | For Capital Adequacy Purposes | Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
(Dollars in millions) | |||||||||||||||||
September 30, 2017 | |||||||||||||||||
Tangible capital (to adjusted avg. total assets) | $ | 1,519 | 9.38 | % | N/A | N/A | N/A | N/A | |||||||||
Tier 1 leverage (to adjusted avg. total assets) | 1,519 | 9.38 | % | $ | 648 | 4.00 | % | $ | 810 | 5.00 | % | ||||||
Common equity tier 1 capital (to RWA) | 1,519 | 14.61 | % | 468 | 4.50 | % | 676 | 6.50 | % | ||||||||
Tier 1 capital (to RWA) | 1,519 | 14.61 | % | 624 | 6.00 | % | 832 | 8.00 | % | ||||||||
Total capital (to RWA) | 1,651 | 15.88 | % | 832 | 8.00 | % | 1,040 | 10.00 | % | ||||||||
December 31, 2016 | |||||||||||||||||
Tangible capital (to adjusted avg. total assets) | $ | 1,491 | 10.52 | % | N/A | N/A | N/A | N/A | |||||||||
Tier 1 leverage (to adjusted avg. total assets) | 1,491 | 10.52 | % | $ | 567 | 4.0 | % | $ | 709 | 5.0 | % | ||||||
Common equity tier 1 capital (to RWA) | 1,491 | 17.90 | % | 375 | 4.5 | % | 542 | 6.5 | % | ||||||||
Tier 1 capital (to RWA) | 1,491 | 17.90 | % | 500 | 6.0 | % | 667 | 8.0 | % | ||||||||
Total capital (to RWA) | 1,598 | 19.18 | % | 667 | 8.0 | % | 833 | 10.0 | % |
March 31, 2022 | December 31, 2021 | ||||||||||
(Dollars in millions) | |||||||||||
Commitments to extend credit | |||||||||||
Mortgage loan commitments including interest rate locks | $ | 5,371 | $ | 5,539 | |||||||
Warehouse loan commitments | 7,675 | 6,840 | |||||||||
Commercial and industrial commitments | 1,764 | 1,582 | |||||||||
Other construction commitments | 2,877 | 2,719 | |||||||||
HELOC commitments | 727 | 631 | |||||||||
Other consumer commitments | 349 | 273 | |||||||||
Standby and commercial letters of credit | 102 | 107 |
September 30, 2017 | December 31, 2016 | ||||||
(Dollars in millions) | |||||||
Commitments to extend credit | |||||||
Mortgage loans interest-rate lock commitments | $ | 4,804 | $ | 4,115 | |||
Warehouse loan commitments | 1,560 | 1,670 | |||||
Commercial and industrial commitments | 692 | 424 | |||||
Other commercial commitments | 955 | 651 | |||||
HELOC commitments | 241 | 179 | |||||
Other consumer commitments | 51 | 57 | |||||
Standby and commercial letters of credit | 46 | 30 |
March 31, 2022 | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||
(Dollars in millions) | ||||||||||||||
Investment securities available-for-sale | ||||||||||||||
Agency - Commercial | $ | — | $ | 1,058 | $ | — | $ | 1,058 | ||||||
Agency - Residential | — | 615 | — | 615 | ||||||||||
Municipal obligations | — | 19 | — | 19 | ||||||||||
Corporate debt obligations | — | 72 | — | 72 | ||||||||||
Other MBS | — | 245 | — | 245 | ||||||||||
Certificate of deposit | — | 1 | — | 1 | ||||||||||
Loans held-for-sale | ||||||||||||||
Residential first mortgage loans | — | 3,154 | — | 3,154 | ||||||||||
Loans held-for-investment | ||||||||||||||
Residential first mortgage loans | — | 21 | — | 21 | ||||||||||
Mortgage servicing rights | — | — | 523 | 523 | ||||||||||
Derivative assets | ||||||||||||||
Rate lock commitments (fallout-adjusted) | — | — | 23 | 23 | ||||||||||
Futures | — | 2 | — | 2 | ||||||||||
Mortgage-backed securities forwards | — | 200 | — | 200 | ||||||||||
Interest rate swaps and swaptions | — | 105 | — | 105 | ||||||||||
Total assets at fair value | $ | — | $ | 5,492 | $ | 546 | $ | 6,038 | ||||||
Derivative liabilities | ||||||||||||||
Rate lock commitments (fallout-adjusted) | $ | — | $ | — | $ | (27) | $ | (27) | ||||||
Mortgage backed securities forwards | — | (45) | — | (45) | ||||||||||
Interest rate swaps | — | (22) | — | (22) | ||||||||||
Total liabilities at fair value | $ | — | $ | (67) | $ | (27) | $ | (94) |
December 31, 2021 | |||||||||||||||||||||||||||||
September 30, 2017 | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | (Dollars in millions) | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Loans held-for-sale | Loans held-for-sale | ||||||||||||||||||||||||||||
Residential first mortgage loans | Residential first mortgage loans | $ | — | $ | 4,920 | $ | — | $ | 4,920 | ||||||||||||||||||||
Investment securities available-for-sale | Investment securities available-for-sale | ||||||||||||||||||||||||||||
Agency - Commercial | $ | — | $ | 750 | $ | — | $ | 750 | Agency - Commercial | — | 747 | — | 747 | ||||||||||||||||
Agency - Residential | — | 809 | — | 809 | Agency - Residential | — | 696 | — | 696 | ||||||||||||||||||||
Other MBS | Other MBS | — | 267 | — | 267 | ||||||||||||||||||||||||
Corporate debt obligations | Corporate debt obligations | — | 73 | — | 73 | ||||||||||||||||||||||||
Municipal obligations | — | 44 | — | 44 | Municipal obligations | — | 20 | — | 20 | ||||||||||||||||||||
Corporate debt obligations | — | 34 | — | 34 | |||||||||||||||||||||||||
Loans held-for-sale | |||||||||||||||||||||||||||||
Residential first mortgage loans | — | 4,907 | — | 4,907 | |||||||||||||||||||||||||
Certificate of deposit | Certificate of deposit | — | 1 | — | 1 | ||||||||||||||||||||||||
Derivative assets | Derivative assets | ||||||||||||||||||||||||||||
Interest rate swaps and swaptions | Interest rate swaps and swaptions | — | 77 | — | 77 | ||||||||||||||||||||||||
Rate lock commitments (fallout-adjusted) | Rate lock commitments (fallout-adjusted) | — | — | 54 | 54 | ||||||||||||||||||||||||
Mortgage-backed securities forwards | Mortgage-backed securities forwards | — | 10 | — | 10 | ||||||||||||||||||||||||
Loans held-for-investment | Loans held-for-investment | ||||||||||||||||||||||||||||
Residential first mortgage loans | — | 9 | — | 9 | Residential first mortgage loans | — | 15 | — | 15 | ||||||||||||||||||||
Home equity | — | — | 4 | 4 | Home equity | — | — | 1 | 1 | ||||||||||||||||||||
Mortgage servicing rights | — | — | 246 | 246 | Mortgage servicing rights | — | — | 392 | 392 | ||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||||||
Rate lock commitments (fallout-adjusted) | — | — | 33 | 33 | |||||||||||||||||||||||||
Total assets at fair value | Total assets at fair value | $ | — | $ | 6,826 | $ | 447 | $ | 7,273 | ||||||||||||||||||||
Derivative liabilities | Derivative liabilities | ||||||||||||||||||||||||||||
Mortgage-backed securities forwards | — | 12 | — | 12 | Mortgage-backed securities forwards | $ | — | $ | (14) | $ | — | $ | (14) | ||||||||||||||||
Interest rate swaps and swaptions | — | 14 | — | 14 | Interest rate swaps and swaptions | — | (5) | — | (5) | ||||||||||||||||||||
Interest rate swap on FHLB advances (net) | — | 1 | — | 1 | |||||||||||||||||||||||||
Total assets at fair value | $ | — | $ | 6,580 | $ | 283 | $ | 6,863 | |||||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||||||||
Rate lock commitments (fallout-adjusted) | $ | — | $ | — | $ | (1 | ) | $ | (1 | ) | Rate lock commitments (fallout-adjusted) | — | — | (1) | (1) | ||||||||||||||
Futures | (3 | ) | — | — | (3 | ) | |||||||||||||||||||||||
Mortgage backed securities forwards | — | (4 | ) | — | (4 | ) | |||||||||||||||||||||||
Interest rate swaps | — | (2 | ) | — | (2 | ) | |||||||||||||||||||||||
DOJ litigation settlement | — | — | (60 | ) | (60 | ) | |||||||||||||||||||||||
Contingent consideration | — | — | (26 | ) | (26 | ) | |||||||||||||||||||||||
DOJ Liability | DOJ Liability | — | — | — | — | ||||||||||||||||||||||||
Total liabilities at fair value | $ | (3 | ) | $ | (6 | ) | $ | (87 | ) | $ | (96 | ) | Total liabilities at fair value | $ | — | $ | (19) | $ | (1) | $ | (20) |
December 31, 2016 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||
(Dollars in millions) | |||||||||||||||
Investment securities available-for-sale | |||||||||||||||
Agency - Commercial | $ | — | $ | 548 | $ | — | $ | 548 | |||||||
Agency - Residential | — | 898 | — | 898 | |||||||||||
Municipal obligations | — | 34 | — | 34 | |||||||||||
Loans held-for-sale | |||||||||||||||
Residential first mortgage loans | — | 3,145 | — | 3,145 | |||||||||||
Loans held-for-investment | |||||||||||||||
Residential first mortgage loans | — | 7 | — | 7 | |||||||||||
Home equity | — | — | 65 | 65 | |||||||||||
Mortgage servicing rights | — | — | 335 | 335 | |||||||||||
Derivative assets | |||||||||||||||
Rate lock commitments (fallout-adjusted) | — | — | 24 | 24 | |||||||||||
Futures | 2 | — | — | 2 | |||||||||||
Mortgage backed securities forwards | — | 43 | — | 43 | |||||||||||
Interest rate swaps and swaptions | — | 35 | — | 35 | |||||||||||
Interest rate swaps on FHLB advances (net) | — | 19 | — | 19 | |||||||||||
Total assets at fair value | $ | 2 | $ | 4,729 | $ | 424 | $ | 5,155 | |||||||
Derivative liabilities | |||||||||||||||
Rate lock commitments (fallout-adjusted) | $ | — | $ | — | $ | (6 | ) | $ | (6 | ) | |||||
Mortgage backed securities forwards | — | (11 | ) | — | (11 | ) | |||||||||
Interest rate swaps | — | (37 | ) | — | (37 | ) | |||||||||
Warrant liabilities | — | (4 | ) | — | (4 | ) | |||||||||
DOJ litigation settlement | — | — | (60 | ) | (60 | ) | |||||||||
Total liabilities at fair value | $ | — | $ | (52 | ) | $ | (66 | ) | $ | (118 | ) |
Balance at Beginning of Period | Total Gains (Losses) Recorded in Earnings | Purchases / Closings | Sales | Settlement | Transfers Out | Balance at End of Period | |||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Three Months Ended March 31, 2022 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Mortgage servicing rights (1) | $ | 392 | $ | 39 | $ | 92 | $ | — | $ | — | $ | — | $ | 523 | |||||||||
Rate lock commitments (net) (1)(2) | 53 | (174) | 101 | — | — | 16 | (4) | ||||||||||||||||
Totals | $ | 445 | $ | (135) | $ | 193 | $ | — | $ | — | $ | 16 | $ | 519 | |||||||||
Three Months Ended March 31, 2021 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Loans held-for-investment | |||||||||||||||||||||||
Home equity | $ | 2 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 2 | |||||||||
Mortgage servicing rights (1) | 329 | 34 | 65 | — | — | — | 428 | ||||||||||||||||
Rate lock commitments (net) (1)(2) | 208 | (169) | 205 | — | — | (170) | 74 | ||||||||||||||||
Totals | $ | 539 | $ | (135) | $ | 270 | $ | — | $ | — | $ | (170) | $ | 504 | |||||||||
Liabilities | |||||||||||||||||||||||
DOJ Liability | $ | (35) | $ | (35) | $ | — | $ | — | $ | — | $ | — | $ | (70) | |||||||||
Totals | $ | (35) | $ | (35) | $ | — | $ | — | $ | — | $ | — | $ | (70) |
Recorded in Earnings | Recorded in OCI | |||||||||||||||||||||||||||
Balance at Beginning of Period | Total Unrealized Gains / (Losses) | Total Realized Gains / (Losses) | Total Unrealized Gains / (Losses) | Purchases / Originations | Sales | Settlements | Transfers In (Out) | Balance at End of Period | ||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2017 | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Loans held-for-investment | ||||||||||||||||||||||||||||
Home equity | $ | 5 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (1 | ) | $ | — | $ | 4 | |||||||||
Mortgage servicing rights | 184 | (9 | ) | — | — | 75 | (4 | ) | — | — | 246 | |||||||||||||||||
Rate lock commitments (net) (1) | 26 | 21 | — | — | 82 | — | — | (97 | ) | 32 | ||||||||||||||||||
Totals | $ | 215 | $ | 12 | $ | — | $ | — | $ | 157 | $ | (4 | ) | $ | (1 | ) | $ | (97 | ) | $ | 282 | |||||||
Liabilities | ||||||||||||||||||||||||||||
DOJ litigation settlement | $ | (60 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (60 | ) | ||||||||
Contingent consideration | (23 | ) | (1 | ) | — | — | (2 | ) | — | — | — | (26 | ) | |||||||||||||||
Totals | $ | (83 | ) | $ | (1 | ) | $ | — | $ | — | $ | (2 | ) | $ | — | $ | — | $ | — | $ | (86 | ) | ||||||
Three Months Ended September 30, 2016 | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Loans held-for-investment | ||||||||||||||||||||||||||||
Home equity | $ | 82 | $ | 4 | $ | — | $ | — | $ | — | $ | — | $ | (14 | ) | $ | — | $ | 72 | |||||||||
Mortgage servicing rights | 301 | (33 | ) | — | — | 51 | (17 | ) | — | — | 302 | |||||||||||||||||
Rate lock commitments (net) (1) | 82 | 33 | — | — | 116 | (150 | ) | (18 | ) | — | 63 | |||||||||||||||||
Totals | $ | 465 | $ | 4 | $ | — | $ | — | $ | 167 | $ | (167 | ) | $ | (32 | ) | $ | — | $ | 437 | ||||||||
Liabilities | ||||||||||||||||||||||||||||
DOJ litigation settlement | $ | (84 | ) | $ | 24 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (60 | ) |
Recorded in Earnings | Recorded in OCI | ||||||||||||||||||||||||||||
Balance at Beginning of Period | Total Unrealized Gains / (Losses) | Total Realized Gains / (Losses) | Total Unrealized Gains / (Losses) | Purchases / Originations | Sales | Settlements | Transfers In (Out) | Balance at End of Period | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Loans held-for-sale | |||||||||||||||||||||||||||||
Home equity | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | (52 | ) | $ | (1 | ) | $ | 52 | $ | — | |||||||||
Loans held-for-investment | |||||||||||||||||||||||||||||
Home equity | 65 | 1 | — | — | — | — | — | (7 | ) | (55 | ) | 4 | |||||||||||||||||
Mortgage servicing rights | 335 | (7 | ) | — | — | 178 | (260 | ) | — | — | 246 | ||||||||||||||||||
Rate lock commitments (net) (1) | 18 | 55 | — | — | 199 | — | — | (240 | ) | 32 | |||||||||||||||||||
Totals | $ | 418 | $ | 50 | $ | — | $ | — | $ | 377 | $ | (312 | ) | $ | (8 | ) | $ | (243 | ) | $ | 282 | ||||||||
Liabilities | |||||||||||||||||||||||||||||
DOJ litigation settlement | $ | (60 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (60 | ) | |||||||||
Contingent consideration | — | (1 | ) | — | — | (25 | ) | — | — | — | (26 | ) | |||||||||||||||||
Totals | $ | (60 | ) | $ | (1 | ) | $ | — | $ | — | $ | (25 | ) | $ | — | $ | — | $ | — | $ | (86 | ) | |||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Loans held-for-investment | |||||||||||||||||||||||||||||
Home equity | $ | 106 | $ | 2 | $ | — | $ | — | $ | — | $ | — | $ | (36 | ) | $ | — | $ | 72 | ||||||||||
Mortgage servicing rights | 296 | (126 | ) | — | — | 173 | (41 | ) | — | — | 302 | ||||||||||||||||||
Rate lock commitments (net) (1) | 26 | 153 | — | — | 303 | (371 | ) | (48 | ) | — | 63 | ||||||||||||||||||
Totals | $ | 428 | $ | 29 | $ | — | $ | — | $ | 476 | $ | (412 | ) | $ | (84 | ) | $ | — | $ | 437 | |||||||||
Liabilities | |||||||||||||||||||||||||||||
DOJ litigation settlement | $ | (84 | ) | $ | 24 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (60 | ) |
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||||||||||
(Dollars in millions) | |||||||||||||||||
March 31, 2022 | |||||||||||||||||
Assets | |||||||||||||||||
Loans held-for-investment | |||||||||||||||||
Mortgage servicing rights | $ | 523 | Discounted cash flows | Option adjusted spread Constant prepayment rate Weighted average cost to service per loan | 3.8% - 21.6% (6.6%) 0% - 10.3% (8.7%) $67 - $90 ($80) | (1) | |||||||||||
Rate lock commitments (net) | $ | (4) | Consensus pricing | Origination pull-through rate | 77.2% | (1) |
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||
(Dollars in millions) | |||||||||
September 30, 2017 | |||||||||
Assets | |||||||||
Loans held-for-investment | |||||||||
Home equity | $ | 4 | Discounted cash flows | Discount rate Constant prepayment rate Constant default rate | 7.2% - 10.8% (9.0%) 5.2% - 7.7% (6.5%) 3.0% - 4.5% (3.4%) | ||||
Mortgage servicing rights | $ | 246 | Discounted cash flows | Option adjusted spread Constant prepayment rate Weighted average cost to service per loan | 4.7% - 7.0% (5.8%) 7.8% - 11.4% (9.6%) $57 - $85 ($71) | ||||
Rate lock commitments (net) | $ | 32 | Consensus pricing | Origination pull-through rate | 63.9% - 95.9% (79.9%) | ||||
Liabilities | |||||||||
DOJ litigation settlement | $ | 60 | Discounted cash flows | Discount rate Asset growth rate | 7.5% - 11.3% (9.4%) 5.6% - 16.8% (6.5%) | ||||
Contingent consideration | $ | 26 | Discounted cash flows | Beta Equity volatility | 0.6 - 1.6 (1.1) 26.6% - 58.9% (40.5%) |
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | |||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | (Dollars in millions) | ||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||
December 31, 2016 | ||||||||||||||||||||||||||
December 31, 2021 | December 31, 2021 | |||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||
Loans held-for-investment | Loans held-for-investment | |||||||||||||||||||||||||
Home equity | $ | 65 | Discounted cash flows | Discount rate Constant prepayment rate Constant default rate | 6.0% - 12.2% (9.3%) 16.3% - 24.4% (20.3%) 2.7% - 4.1% (3.7%) | |||||||||||||||||||||
Mortgage servicing rights | $ | 335 | Discounted cash flows | Option adjusted spread Constant prepayment rate Weighted average cost to service per loan | 6.2% - 9.3% (7.8%) 13.9% - 19.2% (16.7%) $55 - $82 ($68) | Mortgage servicing rights | $ | 392 | Discounted cash flows | Option adjusted spread Constant prepayment rate Weighted average cost to service per loan | 3.9% - 21.6% (7.1%) 0% - 11.1% (9.2%) $67 - $90 ($80) | (1) | ||||||||||||||
Rate lock commitments (net) | $ | 18 | Consensus pricing | Origination pull-through rate | 66.9% - 100.0% (83.6%) | Rate lock commitments (net) | $ | 53 | Consensus pricing | Origination pull-through rate | 72.8% | (1) | ||||||||||||||
Liabilities | ||||||||||||||||||||||||||
DOJ litigation settlement | $ | 60 | Discounted cash flows | Discount rate Asset growth rate | 6.6% - 9.8% (8.2%) 4.2% - 11.6% (7.9%) |
Total (1) | Level 2 | Level 3 | Losses | ||||||||||||||||||||||||||
Total (1) | Level 2 | Level 3 | Gains/(Losses) | (Dollars in millions) | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||||||||
March 31, 2022 | March 31, 2022 | ||||||||||||||||||||||||||||
Loans held-for-sale (2) | $ | 6 | $ | 6 | $ | — | $ | (1 | ) | Loans held-for-sale (2) | $ | 293 | $ | 293 | $ | — | $ | (1) | |||||||||||
Impaired loans held-for-investment (2) | |||||||||||||||||||||||||||||
Loans held-for-investment | 23 | — | 23 | (8 | ) | ||||||||||||||||||||||||
Repossessed assets (3) | 9 | — | 9 | — | |||||||||||||||||||||||||
Totals | $ | 38 | $ | 6 | $ | 32 | $ | (9 | ) | ||||||||||||||||||||
December 31, 2016 | |||||||||||||||||||||||||||||
Loans held-for-sale (2) | $ | 9 | $ | 9 | $ | — | $ | (2 | ) | ||||||||||||||||||||
Commercial loans | Commercial loans | 18 | — | 18 | — | ||||||||||||||||||||||||
Impaired loans held-for-investment (2) | Impaired loans held-for-investment (2) | ||||||||||||||||||||||||||||
Residential first mortgage loans | 25 | — | 25 | (28 | ) | Residential first mortgage loans | 72 | — | 72 | (8) | |||||||||||||||||||
Repossessed assets (3) | 14 | — | 14 | (2 | ) | Repossessed assets (3) | 4 | — | 4 | (1) | |||||||||||||||||||
Totals | $ | 48 | $ | 9 | $ | 39 | $ | (32 | ) | Totals | $ | 387 | $ | 293 | $ | 94 | $ | (10) | |||||||||||
December 31, 2021 | December 31, 2021 | ||||||||||||||||||||||||||||
Loans held-for-sale (2) | Loans held-for-sale (2) | $ | 116 | $ | 116 | $ | — | $ | (1) | ||||||||||||||||||||
Commercial loans | Commercial loans | 18 | — | 18 | — | ||||||||||||||||||||||||
Impaired loans held-for-investment (2) | Impaired loans held-for-investment (2) | ||||||||||||||||||||||||||||
Residential first mortgage loans | Residential first mortgage loans | 36 | — | 36 | (5) | ||||||||||||||||||||||||
Repossessed assets (3) | Repossessed assets (3) | 6 | — | 6 | (1) | ||||||||||||||||||||||||
Totals | Totals | $ | 176 | $ | 116 | $ | 60 | $ | (7) |
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | |||||||||||
(Dollars in millions) | ||||||||||||||
March 31, 2022 | ||||||||||||||
Commercial loans | $ | 18 | Fair value of collateral | Market price | N/A | |||||||||
Impaired loans held-for-investment | ||||||||||||||
Residential first mortgage loans (1) | $ | 72 | Fair value of collateral | Loss severity discount | 0% - 100% (9.8%) | |||||||||
Repossessed assets (1) | $ | 4 | Fair value of collateral | Loss severity discount | 0% - 98.0% (25.4%) | |||||||||
December 31, 2021 | ||||||||||||||
Impaired loans-held-for sale | ||||||||||||||
Commercial loans HFS | $ | 18 | Fair value of collateral | Market price | N/A | |||||||||
Impaired loans held-for-investment | ||||||||||||||
Residential first mortgage loans (1) | $ | 36 | Fair value of collateral | Loss severity discount | 0% - 100% (12.7%) | |||||||||
Repossessed assets (1) | $ | 6 | Fair value of collateral | Loss severity discount | 0% - 96.3% (19.8%) |
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||
(Dollars in millions) | |||||||||
September 30, 2017 | |||||||||
Impaired loans held-for-investment | |||||||||
Loans held-for-investment | $ | 23 | Fair value of collateral | Loss severity discount | 28% - 31% (29.6%) | ||||
Repossessed assets | $ | 9 | Fair value of collateral | Loss severity discount | 29% - 100% (75.3%) | ||||
December 31, 2016 | |||||||||
Impaired loans held-for-investment | |||||||||
Residential first mortgage loans | $ | 25 | Fair value of collateral | Loss severity discount | 22% - 40% (29.5%) | ||||
Repossessed assets | $ | 14 | Fair value of collateral | Loss severity discount | 22% - 100% (69.5%) |
March 31, 2022 | |||||||||||||||||
Estimated Fair Value | |||||||||||||||||
Carrying Value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(Dollars in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 405 | $ | 405 | $ | 405 | $ | — | $ | — | |||||||
Investment securities available-for-sale | 2,010 | 2,010 | — | 2,010 | — | ||||||||||||
Investment securities held-to-maturity | 190 | 186 | — | 186 | — | ||||||||||||
Loans held-for-sale | 3,475 | 3,475 | — | 3,475 | — | ||||||||||||
Loans held-for-investment | 13,236 | 13,197 | — | 21 | 13,176 | ||||||||||||
Loans with government guarantees | 1,256 | 1,256 | — | 1,256 | — | ||||||||||||
Mortgage servicing rights | 523 | 523 | — | — | 523 | ||||||||||||
Federal Home Loan Bank stock | 329 | 329 | — | 329 | — | ||||||||||||
Bank owned life insurance | 367 | 367 | — | 367 | — | ||||||||||||
Repossessed assets | 4 | 4 | — | — | 4 | ||||||||||||
Other assets, foreclosure claims | 11 | 11 | — | 11 | — | ||||||||||||
Derivative financial instruments, assets | 330 | 330 | — | 307 | 23 | ||||||||||||
Liabilities | |||||||||||||||||
Retail deposits | |||||||||||||||||
Demand deposits and savings accounts | $ | (9,277) | $ | (7,972) | $ | — | $ | (7,972) | $ | — | |||||||
Certificates of deposit | (898) | (901) | — | (901) | — | ||||||||||||
Wholesale deposits | (974) | (952) | — | (952) | — | ||||||||||||
Government deposits | (1,886) | (1,748) | — | (1,748) | — | ||||||||||||
Company controlled deposits | (4,313) | (4,264) | — | (4,264) | — | ||||||||||||
Federal Home Loan Bank advances | (1,400) | (1,395) | — | (1,395) | — | ||||||||||||
Long-term debt | (396) | (346) | — | (346) | — | ||||||||||||
Derivative financial instruments, liabilities | (94) | (94) | — | (67) | (27) |
September 30, 2017 | December 31, 2021 | |||||||||||||||||||||||||||||||||||
Estimated Fair Value | Estimated Fair Value | |||||||||||||||||||||||||||||||||||
Carrying Value | Total | Level 1 | Level 2 | Level 3 | Carrying Value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | |||||||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 233 | $ | 233 | $ | 233 | $ | — | $ | — | Cash and cash equivalents | $ | 1,051 | $ | 1,051 | $ | 1,051 | $ | — | $ | — | |||||||||||||||
Investment securities available-for-sale | 1,637 | 1,637 | — | 1,637 | — | Investment securities available-for-sale | 1,804 | 1,804 | — | 1,804 | — | |||||||||||||||||||||||||
Investment securities held-to-maturity | 977 | 971 | — | 971 | — | Investment securities held-to-maturity | 205 | 209 | — | 209 | — | |||||||||||||||||||||||||
Loans held-for-sale | 4,939 | 4,940 | — | 4,940 | — | Loans held-for-sale | 5,054 | 5,054 | — | 5,054 | — | |||||||||||||||||||||||||
Loans held-for-investment | 7,203 | 7,181 | — | 9 | 7,172 | Loans held-for-investment | 13,408 | 13,453 | — | 14 | 13,439 | |||||||||||||||||||||||||
Loans with government guarantees | 253 | 245 | — | 245 | — | Loans with government guarantees | 1,650 | 1,650 | — | 1,650 | — | |||||||||||||||||||||||||
Mortgage servicing rights | 246 | 246 | — | — | 246 | Mortgage servicing rights | 392 | 392 | — | — | 392 | |||||||||||||||||||||||||
Federal Home Loan Bank stock | 264 | 264 | — | 264 | — | Federal Home Loan Bank stock | 377 | 377 | — | 377 | — | |||||||||||||||||||||||||
Bank owned life insurance | 328 | 328 | — | 328 | — | Bank owned life insurance | 365 | 365 | — | 365 | — | |||||||||||||||||||||||||
Repossessed assets | 9 | 9 | — | — | 9 | Repossessed assets | 6 | 6 | — | — | 6 | |||||||||||||||||||||||||
Other assets, foreclosure claims | 92 | 92 | — | 92 | — | Other assets, foreclosure claims | 7 | 7 | — | 7 | — | |||||||||||||||||||||||||
Derivative financial instruments, assets | 60 | 60 | — | 27 | 33 | Derivative financial instruments, assets | 141 | 141 | — | 87 | 54 | |||||||||||||||||||||||||
Liabilities | Liabilities | |||||||||||||||||||||||||||||||||||
Retail deposits | Retail deposits | |||||||||||||||||||||||||||||||||||
Demand deposits and savings accounts | $ | (5,243 | ) | $ | (4,845 | ) | $ | — | $ | (4,845 | ) | $ | — | Demand deposits and savings accounts | $ | (9,313) | $ | (8,469) | $ | — | $ | (8,469) | $ | — | ||||||||||||
Certificates of deposit | (1,297 | ) | (1,304 | ) | — | (1,304 | ) | — | Certificates of deposit | (951) | (952) | — | (952) | — | ||||||||||||||||||||||
Wholesale deposits | (43 | ) | (43 | ) | — | (43 | ) | — | Wholesale deposits | (1,141) | (1,137) | — | (1,137) | — | ||||||||||||||||||||||
Government deposits | (1,068 | ) | (1,045 | ) | — | (1,045 | ) | — | Government deposits | (2,000) | (1,904) | — | (1,904) | — | ||||||||||||||||||||||
Company controlled deposits | (1,510 | ) | (1,473 | ) | — | (1,473 | ) | — | Company controlled deposits | (4,604) | (4,580) | — | (4,580) | — | ||||||||||||||||||||||
Federal Home Loan Bank advances | (5,365 | ) | (5,252 | ) | — | (5,252 | ) | — | ||||||||||||||||||||||||||||
Federal Home Loan Bank advances and other | Federal Home Loan Bank advances and other | (3,280) | (3,288) | — | (3,288) | — | ||||||||||||||||||||||||||||||
Long-term debt | (493 | ) | (382 | ) | — | (382 | ) | — | Long-term debt | (396) | (340) | — | (340) | — | ||||||||||||||||||||||
DOJ litigation settlement | (60 | ) | (60 | ) | — | — | (60 | ) | ||||||||||||||||||||||||||||
Contingent consideration | (26 | ) | (26 | ) | — | — | (26 | ) | ||||||||||||||||||||||||||||
Derivative financial instruments, liabilities | (10 | ) | (10 | ) | (3 | ) | (6 | ) | (1 | ) | Derivative financial instruments, liabilities | (20) | (20) | — | (19) | (1) |
December 31, 2016 | |||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||
Carrying Value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 158 | $ | 158 | $ | 158 | $ | — | $ | — | |||||||||
Investment securities available-for-sale | 1,480 | 1,480 | — | 1,480 | — | ||||||||||||||
Investment securities held-to-maturity | 1,093 | 1,084 | — | 1,084 | — | ||||||||||||||
Loans held-for-sale | 3,177 | 3,178 | — | 3,178 | — | ||||||||||||||
Loans held-for-investment | 6,065 | 5,998 | — | 7 | 5,991 | ||||||||||||||
Loans with government guarantees | 365 | 354 | — | 354 | — | ||||||||||||||
Mortgage servicing rights | 335 | 335 | — | — | 335 | ||||||||||||||
Federal Home Loan Bank stock | 180 | 180 | — | 180 | — | ||||||||||||||
Bank owned life insurance | 271 | 271 | — | 271 | — | ||||||||||||||
Repossessed assets | 14 | 14 | — | — | 14 | ||||||||||||||
Other assets, foreclosure claims | 135 | 135 | — | 135 | — | ||||||||||||||
Derivative financial instruments, assets | 123 | 123 | 45 | 54 | 24 | ||||||||||||||
Liabilities | |||||||||||||||||||
Retail deposits | |||||||||||||||||||
Demand deposits and savings accounts | $ | (5,268 | ) | $ | (4,956 | ) | $ | — | $ | (4,956 | ) | $ | — | ||||||
Certificates of deposit | (1,056 | ) | (1,062 | ) | — | (1,062 | ) | — | |||||||||||
Government deposits | (1,030 | ) | (1,011 | ) | — | (1,011 | ) | — | |||||||||||
Company controlled deposits | (1,446 | ) | (1,371 | ) | — | (1,371 | ) | — | |||||||||||
Federal Home Loan Bank advances | (2,980 | ) | (2,964 | ) | — | (2,964 | ) | — | |||||||||||
Long-term debt | (493 | ) | (277 | ) | — | (277 | ) | — | |||||||||||
Warrant liabilities | (4 | ) | (4 | ) | — | (4 | ) | — | |||||||||||
DOJ litigation settlement | (60 | ) | (60 | ) | — | — | (60 | ) | |||||||||||
Derivative financial instruments, liabilities | (54 | ) | (54 | ) | (11 | ) | (37 | ) | (6 | ) |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Loans held-for-sale | |||||||||||||||||||||||
Net gain on loan sales | $ | (294) | $ | 87 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
DOJ Liability | |||||||||||||||||||||||
Other noninterest expense | $ | — | $ | 35 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in millions) | |||||||||||||||
Assets | |||||||||||||||
Loans held-for-sale | |||||||||||||||
Net gain on loan sales | $ | 92 | $ | 151 | $ | 260 | $ | 440 | |||||||
Loans held-for-investment | |||||||||||||||
Other noninterest income | $ | — | $ | — | $ | 1 | $ | (2 | ) | ||||||
Liabilities | |||||||||||||||
Other noninterest income | $ | — | $ | 24 | $ | — | $ | 24 |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
UPB | Fair Value | Fair Value Over / (Under) UPB | UPB | Fair Value | Fair Value Over / (Under) UPB | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Nonaccrual loans | |||||||||||||||||||||||
Loans held-for-sale | $ | 25 | $ | 23 | $ | (2) | $ | 18 | $ | 16 | $ | (2) | |||||||||||
Loans held-for-investment | 14 | 11 | (3) | 15 | 13 | (2) | |||||||||||||||||
Total nonaccrual loans | $ | 39 | $ | 34 | $ | (5) | $ | 33 | $ | 29 | $ | (4) | |||||||||||
Other performing loans | |||||||||||||||||||||||
Loans held-for-sale | $ | 3,188 | $ | 3,131 | $ | (57) | $ | 4,790 | $ | 4,904 | $ | 114 | |||||||||||
Loans held-for-investment | 12 | 10 | (2) | 5 | 3 | (2) | |||||||||||||||||
Total other performing loans | $ | 3,200 | $ | 3,141 | $ | (59) | $ | 4,795 | $ | 4,907 | $ | 112 | |||||||||||
Total loans | |||||||||||||||||||||||
Loans held-for-sale | $ | 3,213 | $ | 3,154 | $ | (59) | $ | 4,808 | $ | 4,920 | $ | 112 | |||||||||||
Loans held-for-investment | 26 | 21 | (5) | 20 | 16 | (4) | |||||||||||||||||
Total loans | $ | 3,239 | $ | 3,175 | $ | (64) | $ | 4,828 | $ | 4,936 | $ | 108 | |||||||||||
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Unpaid Principal Balance | Fair Value | Fair Value Over / (Under) Unpaid Principal Balance | Unpaid Principal Balance | Fair Value | Fair Value Over / (Under) Unpaid Principal Balance | ||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Nonaccrual loans | |||||||||||||||||||||||
Loans held-for-sale | $ | 4 | $ | 4 | $ | — | $ | 2 | $ | 2 | $ | — | |||||||||||
Loans held-for-investment | 6 | 4 | (2 | ) | 19 | 13 | (6 | ) | |||||||||||||||
Total nonaccrual loans | $ | 10 | $ | 8 | $ | (2 | ) | $ | 21 | $ | 15 | $ | (6 | ) | |||||||||
Other performing loans | |||||||||||||||||||||||
Loans held-for-sale | $ | 4,742 | $ | 4,903 | $ | 161 | $ | 3,103 | $ | 3,143 | $ | 40 | |||||||||||
Loans held-for-investment | 11 | 9 | (2 | ) | 72 | 59 | (13 | ) | |||||||||||||||
Total other performing loans | $ | 4,753 | $ | 4,912 | $ | 159 | $ | 3,175 | $ | 3,202 | $ | 27 | |||||||||||
Total loans | |||||||||||||||||||||||
Loans held-for-sale | $ | 4,746 | $ | 4,907 | $ | 161 | $ | 3,105 | $ | 3,145 | $ | 40 | |||||||||||
Loans held-for-investment | 17 | 13 | (4 | ) | 91 | 72 | (19 | ) | |||||||||||||||
Total loans | $ | 4,763 | $ | 4,920 | $ | 157 | $ | 3,196 | $ | 3,217 | $ | 21 | |||||||||||
Liabilities | |||||||||||||||||||||||
Litigation settlement (1) | $ | (118 | ) | $ | (60 | ) | $ | 58 | $ | (118 | ) | $ | (60 | ) | $ | 58 |
Three Months Ended March 31, 2022 | |||||||||||||||||
Community Banking | Mortgage Originations | Mortgage Servicing | Other (1) | Total | |||||||||||||
(Dollars in millions) | |||||||||||||||||
Summary of Operations | |||||||||||||||||
Net interest income | $ | 122 | $ | 56 | $ | 3 | $ | (16) | $ | 165 | |||||||
Provision (benefit) for credit losses | 22 | 3 | — | (29) | (4) | ||||||||||||
Net interest income after benefit for credit losses | 100 | 53 | 3 | 13 | 169 | ||||||||||||
Net gain on loan sales | — | 45 | — | — | 45 | ||||||||||||
Loan fees and charges | — | 6 | 21 | — | 27 | ||||||||||||
Net return on mortgage servicing rights | — | 29 | — | — | 29 | ||||||||||||
Loan administrative (expense) income | — | (7) | 43 | (3) | 33 | ||||||||||||
Other noninterest income | 18 | 1 | — | 7 | 26 | ||||||||||||
Total noninterest income | 18 | 74 | 64 | 4 | 160 | ||||||||||||
Compensation and benefits | 28 | 45 | 16 | 38 | 127 | ||||||||||||
Commissions | 1 | 25 | — | — | 26 | ||||||||||||
Loan processing expense | 2 | 9 | 9 | 1 | 21 | ||||||||||||
General, administrative and other | 18 | 11 | 21 | 37 | 87 | ||||||||||||
Total noninterest expense | 49 | 90 | 46 | 76 | 261 | ||||||||||||
Income (loss) before indirect overhead allocations and income taxes | 69 | 37 | 21 | (59) | 68 | ||||||||||||
Indirect overhead allocation (expense) income | (10) | (15) | (6) | 31 | — | ||||||||||||
Provision (benefit) for income taxes | 12 | 4 | 3 | (4) | 15 | ||||||||||||
Net income (loss) | $ | 47 | $ | 18 | $ | 12 | $ | (24) | $ | 53 | |||||||
Intersegment revenue (expense) | $ | 22 | $ | 9 | $ | 9 | $ | (40) | $ | — | |||||||
Average balances | |||||||||||||||||
Loans held-for-sale | $ | 18 | $ | 4,815 | $ | — | $ | — | $ | 4,833 | |||||||
Loans with government guarantees | — | 1,404 | (2) | — | 1,402 | ||||||||||||
Loans held-for-investment (2) | 10,942 | 1,442 | — | — | 12,384 | ||||||||||||
Total assets | 11,326 | 8,695 | 167 | 3,973 | 24,161 | ||||||||||||
Deposits | 12,006 | 42 | 5,016 | 1,025 | 18,089 |
Three Months Ended September 30, 2017 | Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||
Community Banking | Mortgage Originations | Mortgage Servicing | Other | Total | Community Banking | Mortgage Originations | Mortgage Servicing | Other (1) | Total | |||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | |||||||||||||||||||||||||||||||||||
Summary of Operations | Summary of Operations | |||||||||||||||||||||||||||||||||||
Net interest income | $ | 63 | $ | 34 | $ | 7 | $ | (1 | ) | $ | 103 | Net interest income | $ | 156 | $ | 56 | $ | 4 | $ | (27) | $ | 189 | ||||||||||||||
Net gain (loss) on loan sales | (4 | ) | 79 | — | — | 75 | ||||||||||||||||||||||||||||||
Representation and warranty benefit | — | 4 | — | — | 4 | |||||||||||||||||||||||||||||||
Benefit for credit losses | Benefit for credit losses | (14) | (2) | — | (12) | (28) | ||||||||||||||||||||||||||||||
Net interest income after benefit for credit losses | Net interest income after benefit for credit losses | 170 | 58 | 4 | (15) | 217 | ||||||||||||||||||||||||||||||
Net gain on loan sales | Net gain on loan sales | — | 227 | — | — | 227 | ||||||||||||||||||||||||||||||
Loan fees and charges | Loan fees and charges | — | 24 | 18 | — | 42 | ||||||||||||||||||||||||||||||
Net return on mortgage servicing rights | Net return on mortgage servicing rights | — | — | — | — | — | ||||||||||||||||||||||||||||||
Loan administrative (expense) income | Loan administrative (expense) income | — | (10) | 40 | (3) | 27 | ||||||||||||||||||||||||||||||
Other noninterest income | 9 | 23 | 11 | 8 | 51 | Other noninterest income | 18 | 3 | — | 7 | 28 | |||||||||||||||||||||||||
Total net interest income and noninterest income | 68 | 140 | 18 | 7 | 233 | |||||||||||||||||||||||||||||||
(Provision) benefit for loan losses | (1 | ) | (1 | ) | — | — | (2 | ) | ||||||||||||||||||||||||||||
Depreciation and amortization expense | (2 | ) | (2 | ) | (1 | ) | (5 | ) | (10 | ) | ||||||||||||||||||||||||||
Other noninterest expense | (49 | ) | (90 | ) | (22 | ) | — | (161 | ) | |||||||||||||||||||||||||||
Total noninterest income | Total noninterest income | 18 | 244 | 58 | 4 | 324 | ||||||||||||||||||||||||||||||
Compensation and benefits | Compensation and benefits | 31 | 54 | 16 | 43 | 144 | ||||||||||||||||||||||||||||||
Commissions | Commissions | 1 | 61 | — | — | 62 | ||||||||||||||||||||||||||||||
Loan processing expense | Loan processing expense | 1 | 11 | 8 | 1 | 21 | ||||||||||||||||||||||||||||||
General, administrative and other | General, administrative and other | 25 | 22 | 22 | 51 | 120 | ||||||||||||||||||||||||||||||
Total noninterest expense | (51 | ) | (92 | ) | (23 | ) | (5 | ) | (171 | ) | Total noninterest expense | 58�� | 148 | 46 | 95 | 347 | ||||||||||||||||||||
Income (loss) before income taxes | 16 | 47 | (5 | ) | 2 | 60 | ||||||||||||||||||||||||||||||
Income (loss) before indirect overhead allocations and income taxes | Income (loss) before indirect overhead allocations and income taxes | 130 | 154 | 16 | (106) | 194 | ||||||||||||||||||||||||||||||
Indirect overhead allocation (expense) income | Indirect overhead allocation (expense) income | (10) | (19) | (6) | 35 | — | ||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 6 | 16 | (1 | ) | (1 | ) | 20 | Provision (benefit) for income taxes | 25 | 28 | 2 | (10) | 45 | |||||||||||||||||||||||
Net income (loss) | $ | 10 | $ | 31 | $ | (4 | ) | $ | 3 | $ | 40 | Net income (loss) | $ | 95 | $ | 107 | $ | 8 | $ | (61) | $ | 149 | ||||||||||||||
Intersegment revenue | $ | (4 | ) | $ | 2 | $ | 5 | $ | (3 | ) | $ | — | ||||||||||||||||||||||||
Intersegment revenue (expense) | Intersegment revenue (expense) | $ | 14 | $ | (2) | $ | 12 | $ | (24) | $ | — | |||||||||||||||||||||||||
Average balances | Average balances | |||||||||||||||||||||||||||||||||||
Loans held-for-sale | $ | 14 | $ | 4,462 | $ | — | $ | — | $ | 4,476 | Loans held-for-sale | $ | — | $ | 7,464 | $ | — | $ | — | $ | 7,464 | |||||||||||||||
Loans with government guarantees | — | 264 | — | — | 264 | Loans with government guarantees | — | 2,502 | — | — | 2,502 | |||||||||||||||||||||||||
Loans held-for-investment | 6,764 | 10 | — | 29 | 6,803 | |||||||||||||||||||||||||||||||
Loans held-for-investment (2) | Loans held-for-investment (2) | 12,806 | 2,079 | — | 30 | 14,915 | ||||||||||||||||||||||||||||||
Total assets | 6,843 | 5,743 | 30 | 3,823 | 16,439 | Total assets | 13,168 | 13,015 | 390 | 3,492 | 30,065 | |||||||||||||||||||||||||
Deposits | 7,498 | — | 1,507 | — | 9,005 | Deposits | 11,804 | 15 | 7,157 | 1,067 | 20,043 |
Three Months Ended September 30, 2016 | |||||||||||||||||||
Community Banking | Mortgage Originations | Mortgage Servicing | Other | Total | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Summary of Operations | |||||||||||||||||||
Net interest income | $ | 54 | $ | 24 | $ | 7 | $ | (5 | ) | $ | 80 | ||||||||
Net gain (loss) on loan sales | (1 | ) | 95 | — | — | 94 | |||||||||||||
Representation and warranty benefit | — | 6 | — | — | 6 | ||||||||||||||
Other noninterest income | 8 | 4 | 13 | 31 | 56 | ||||||||||||||
Total net interest income and noninterest income | 61 | 129 | 20 | 26 | 236 | ||||||||||||||
(Provision) for loan losses | (7 | ) | — | — | — | (7 | ) | ||||||||||||
Depreciation and amortization expense | (1 | ) | (2 | ) | — | (5 | ) | (8 | ) | ||||||||||
Other noninterest expense | (43 | ) | (66 | ) | (25 | ) | — | (134 | ) | ||||||||||
Total noninterest expense | (44 | ) | (68 | ) | (25 | ) | (5 | ) | (142 | ) | |||||||||
Income (loss) before income taxes | 10 | 61 | (5 | ) | 21 | 87 | |||||||||||||
Provision (benefit) for income taxes | 3 | 22 | (2 | ) | 7 | 30 | |||||||||||||
Net income (loss) | $ | 7 | $ | 39 | $ | (3 | ) | $ | 14 | $ | 57 | ||||||||
Intersegment revenue | $ | (1 | ) | $ | (1 | ) | $ | 6 | $ | (4 | ) | $ | — | ||||||
Average balances | |||||||||||||||||||
Loans held-for-sale | $ | 16 | $ | 3,400 | $ | — | $ | — | $ | 3,416 | |||||||||
Loans with government guarantees | — | 432 | — | — | 432 | ||||||||||||||
Loans held-for-investment | 5,843 | 5 | — | — | 5,848 | ||||||||||||||
Total assets | 5,904 | 4,835 | 26 | 3,383 | 14,148 | ||||||||||||||
Deposits | 7,273 | — | 1,853 | — | 9,126 |
Nine Months Ended September 30, 2017 | |||||||||||||||||||
Community Banking | Mortgage Originations | Mortgage Servicing | Other | Total | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Summary of Operations | |||||||||||||||||||
Net interest income | $ | 171 | $ | 96 | $ | 16 | $ | — | $ | 283 | |||||||||
Net gain (loss) on loan sales | (7 | ) | 196 | — | — | 189 | |||||||||||||
Representation and warranty benefit | — | 11 | — | — | 11 | ||||||||||||||
Other noninterest income | 23 | 66 | 40 | 17 | 146 | ||||||||||||||
Total net interest income and noninterest income | 187 | 369 | 56 | 17 | 629 | ||||||||||||||
(Provision) benefit for loan losses | (3 | ) | (3 | ) | — | 2 | (4 | ) | |||||||||||
Depreciation and amortization expense | (6 | ) | (5 | ) | (3 | ) | (14 | ) | (28 | ) | |||||||||
Other noninterest expense | (138 | ) | (227 | ) | (71 | ) | (1 | ) | (437 | ) | |||||||||
Total noninterest expense | (144 | ) | (232 | ) | (74 | ) | (15 | ) | (465 | ) | |||||||||
Income (loss) before income taxes | 40 | 134 | (18 | ) | 4 | 160 | |||||||||||||
Provision (benefit) for income taxes | 14 | 47 | (6 | ) | (3 | ) | 52 | ||||||||||||
Net income (loss) | $ | 26 | $ | 87 | $ | (12 | ) | $ | 7 | $ | 108 | ||||||||
Intersegment revenue | $ | (5 | ) | $ | 3 | $ | 14 | $ | (12 | ) | $ | — | |||||||
Average balances | |||||||||||||||||||
Loans held-for-sale | $ | 16 | $ | 3,998 | $ | — | $ | — | $ | 4,014 | |||||||||
Loans with government guarantees | — | 300 | — | — | 300 | ||||||||||||||
Loans held-for-investment | 6,191 | 7 | — | 29 | 6,227 | ||||||||||||||
Total assets | 6,262 | 5,307 | 36 | 3,801 | 15,406 | ||||||||||||||
Deposits | 7,438 | — | 1,409 | — | 8,847 |
Nine Months Ended September 30, 2016 | |||||||||||||||||||
Community Banking | Mortgage Originations | Mortgage Servicing | Other | Total | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
Summary of Operations | |||||||||||||||||||
Net interest income | $ | 150 | $ | 67 | $ | 17 | $ | 2 | $ | 236 | |||||||||
Net gain (loss) on loan sales | 8 | 251 | — | — | 259 | ||||||||||||||
Representation and warranty benefit | — | 12 | — | — | 12 | ||||||||||||||
Other noninterest income | 21 | 15 | 41 | 41 | 118 | ||||||||||||||
Total net interest income and noninterest income | 179 | 345 | 58 | 43 | 625 | ||||||||||||||
(Provision) benefit for loan losses | 9 | — | — | — | 9 | ||||||||||||||
Depreciation and amortization expense | (5 | ) | (4 | ) | (2 | ) | (12 | ) | (23 | ) | |||||||||
Other noninterest expense | (131 | ) | (188 | ) | (70 | ) | (6 | ) | (395 | ) | |||||||||
Total noninterest expense | (136 | ) | (192 | ) | (72 | ) | (18 | ) | (418 | ) | |||||||||
Income (loss) before income taxes | 52 | 153 | (14 | ) | 25 | 216 | |||||||||||||
Provision (benefit) for income taxes | 18 | 54 | (5 | ) | 6 | 73 | |||||||||||||
Net income (loss) | $ | 34 | $ | 99 | $ | (9 | ) | $ | 19 | $ | 143 | ||||||||
Intersegment revenue | $ | (2 | ) | $ | (1 | ) | $ | 18 | $ | (15 | ) | $ | — | ||||||
Average balances | |||||||||||||||||||
Loans held-for-sale | $ | 83 | $ | 2,988 | $ | — | $ | — | $ | 3,071 | |||||||||
Loans with government guarantees | — | 450 | — | — | 450 | ||||||||||||||
Loans held-for-investment | 5,689 | 6 | — | — | 5,695 | ||||||||||||||
Total assets | 5,798 | 4,328 | 36 | 3,549 | 13,711 | ||||||||||||||
Deposits | 7,080 | — | 1,523 | — | 8,603 |
Standard | Description | Effective Date | ||||||||
ASU | ||||||||||
Derivatives and Hedging (Topic 815): | ||||||||||
Standard | Description | Effective Date | ||||||||
ASU Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures | ASU 2022-02 eliminates prior accounting guidance for TDRs, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The standard also requires that an entity disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. An entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. Early adoption is permitted in any interim period. | material impact on our results of | ||||||||
financial position, but is expected to result in additional disclosure requirements. |
(a)Evaluation of Disclosure Controls and Procedures. As of March 31, 2022, pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended ("Exchange Act"), an evaluation was performed by the Company’s Management, including our principal executive and financial officers, regarding the design and effectiveness of our disclosure controls and procedures. Based upon that evaluation, the principal executive and financial officers have concluded that our current disclosure controls and procedures were effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms as of March 31, 2022. (b)Changes in Internal Controls. There have been no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(d) of the Exchange Act) during the three months ended March 31, 2022, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 84 |
Exhibit No. | Description | |||||||||
2.1* | ||||||||||
2.2* | ||||||||||
4.3* | ||||||||||
31.1 | ||||||||||
31.2 | ||||||||||
32.1 | ||||||||||
32.2 | ||||||||||
101 | Financial statements from Quarterly Report on Form 10-Q of the Company for the quarter ended |
* | Incorporated herein by reference |
FLAGSTAR BANCORP, INC. | |||||||||||
Registrant | |||||||||||
Date: | /s/ Alessandro DiNello | ||||||||||
Alessandro DiNello | |||||||||||
President and Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
/s/ James K. Ciroli | |||||||||||
James K. Ciroli | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||