Earnings momentum for
Flagstar Bancorp Inc.
) has advanced since this savings bank posted impressive third
quarter results in late October, which included an earnings
surprise of more than 20%. FBC has now surpassed the Zacks
Consensus Estimate for three straight quarters. This Zacks #1 Rank
(Strong Buy) hit a new 52-week high on November 14 and has jumped
Impressive Third Quarter Results
On October 23, Flagstar Bancorp reported third quarter earnings per
share of $1.36, topping the Zacks Consensus Estimate by 23.6% and
soaring over last year's loss of 26 cents. The improvement was due
mainly to growth in net interest and non-interest income, partially
offset by elevated non-interest expenses.
Net interest income climbed 11.4% year over year to $73.1 million,
aided by lower interest expenses. Non-interest income more than
doubled to $273.7 million, compared with $112.6 million. However,
net interest margin contracted 9 basis points (bps) to 2.21%.
Non-interest expenses were $233.5 million, up 54.9% year over year.
The capital position continued to improve at Flagstar Bancorp.
Total assets were $14.9 billion, up 9.6% year over year. Total
deposits rose 23.4% to $9.5 billion. Moreover, the company reported
a Tier 1 common capital ratio of 10.32% and an equity-to-assets
ratio of 8.39%.
Earnings Momentum on the Rise
There's only 1 estimate for 2012 on Flagstar Bancorp, but it has
been revised higher in the past 30 days. The Zacks Consensus
Estimate is, therefore, up by 21.6% to $3.71 in that time,
reflecting year-over-year growth of about 203.1%. There are 2
estimates for 2013, and they have both moved forward in the past
month as well. The Zacks Consensus Estimate has increased 253.0% to
Chart Shows Strength
Flagstar Bancorp has witnessed strong price momentum since the
third quarter earnings release. Moreover, the company has been
continuously outperforming its 200-day and 50-day moving averages
since October 23. The year-to-date return for the stock is 190.7%,
compared with the S&P 500's return of 10.3%.
Headquartered in Troy, Michigan, Flagstar Bancorp, Inc., the
holding company for Flagstar Bank, FSB, provides various financial
products and services. The company was founded in 1987 and serves
consumers, businesses and homeowners. It operates through a
regional office in Jackson, Michigan; 111 banking centers in
Michigan, 31 home lending centers in 14 states and 4 commercial
banking offices in Massachusetts, Connecticut, and Rhode Island.
With a market cap of about $925.7 million, Flagstar Bancorp
competes with Provident Financial Holdings, Inc. (
), among others.
Want More of Our Best Recommendations?
Zacks' Executive VP, Steve Reitmeister, knows when key trades are
about to be triggered and which of our experts has the hottest
hand. Then each week he hand-selects the most compelling trades and
serves them up to you in a new program called
FLAGSTAR BANCP (FBC): Free Stock Analysis
To read this article on Zacks.com click here.