Flagstar Bancorp Q2 Profit Climbs, Tops View; Net Interest Margin Down

(RTTNews) - Flagstar Bancorp Inc. (FBC), the holding company for Flagstar Bank, reported Tuesday that its second-quarter net income was $116 million or $2.03 per share, compared to last year's $61 million or $1.06 per share.

The prior year's adjusted net income was $41 million or $0.71 per share.

On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $1.32 per share for the quarter on revenues of $144.86 million. Analysts' estimates typically exclude special items.

Net interest income in the second quarter of 2020 was $168 million, up from $138 million a year ago.

Net interest margin, meanwhile, declined to 2.86 percent from 3.08 percent last year.

Provision for credit losses surged to $102 million from $17 million last year, primarily driven by forecast of economic conditions.

Noninterest income increased to $378 million in the second quarter from $168 million last year, primarily due to higher mortgage revenues.

Separately, Flagstar Bancorp announced its board of directors has declared a quarterly cash dividend of $0.05 per share on its common stock. The dividend will be payable September 15, to shareholders of record at the close of business September 1.