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Dec 31, 2022
Flagstar Financial Q4 2022 Earnings Report
Reported diluted EPS of $0.30 and adjusted diluted EPS of $0.25.
Key Takeaways
New York Community Bancorp reported fourth-quarter diluted EPS of $0.30, which was unchanged compared to the fourth-quarter of 2021. Adjusted fourth-quarter 2022 diluted EPS was $0.25 compared to $0.31 in fourth-quarter 2021. The acquisition of Flagstar Bancorp closed on December 1st, creating one of the largest regional banks in the country.
Flagstar Bancorp acquisition closed on December 1st.
Transition to commercial bank model is underway.
Legacy New York Community deposit growth of $7.6 billion, a 22% increase.
Strategic actions were announced to restructure mortgage operations during the first quarter of 2023.
Flagstar Financial
Flagstar Financial
Forward Guidance
The Company expects that its margin in 2023 will be above where they ended 2022. They look forward to further benefits in all of their metrics throughout 2023 and next, as they focus on the integration and transformation of the new Flagstar.
Positive Outlook
- Margin in 2023 will be above where they ended the year.
- Further benefits in all of their metrics throughout 2023 and next
- Focus on the integration and transformation of the new Flagstar.
- The company's sensitivity to interest rate changes has improved materially to a more balanced position.
- Transformation of the Company to a commercial banking model is underway.
Challenges Ahead
- Mortgage market to remain challenged.
- Substantial Fed policy shift last year resulted in significantly higher residential mortgage rates.
- This had a negative impact on the business, as all mortgage activity slowed.
- Mortgage business is cyclical by nature and challenging conditions are expected to continue throughout 2023.
- Difficult decisions our leadership team has to make, however; they are necessary to ensure the long-term success of our mortgage business.