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By Rhonda Miller
PBN Staff Writer
TROY, Mich. – Flagstar Bancorp Inc. has seen a dramatic turnaround to its bottom line for 2012, with an improvement of $422.6 million over 2011, according to a Jan. 24 story in Crain’s Detroit Business.
The holding company for Flagstar Bank reported a 2012 net income of $223.7 million, or $3.74 a share, on revenue $1.6 billion, compared with a net loss of $198.9 million, or $3.62 a share, on revenue of $850.9 million in 2011, according to the report.
Flagstar began commercial operations in Providence in April 2011 and has said it planned to grow its New England market.
However, earlier this month Flagstar announced it is selling for an estimated $779 its Northeast-based commercial loan portfolio to CIT Bank to focus on its community banking operations in Michigan and its national mortgage business.
Senior financial analyst Christine Pratt of the Aite Group in Boston told the Providence Business News earlier this month Flagstar appears to be winding down its New England operation.
“My take on it is they opened a commercial loan office and now they sold their commercial loans for the region, so I think they’re moving out of the Rhode Island operation,” said Pratt. “They gathered commercial real estate and equipment leasing loans and both of those types of loans are tied to construction, which we know is not flourishing.”
Flagstar has declined to comment on what the sale means for its New England operation, or on what that business entails.