Segment Information (Tables)

6 Months Ended

Jun. 30, 2022

Financial Information by Business Segment

The following tables present financial information by business segment for the periods indicated:


	Three Months Ended June 30, 2022
	Community Banking		Mortgage Originations		Mortgage Servicing		Other (1)		Total
	(Dollars in millions)
Summary of Operations
Net interest income	$	136	$	46	$	4	$	7	$	193
Provision (benefit) for credit losses	13		(6)		—		(16)		(9)
Net interest income after provision (benefit) for credit losses	123		52		4		23		202
Net gain on loan sales	—		27		—		—		27
Loan fees and charges	—		7		22		—		29
Net return on mortgage servicing rights	—		22		—		—		22
Loan administrative (expense) income	(1)		(7)		44		(3)		33
Other noninterest income (expense)	19		(5)		—		6		20
Total noninterest income	18		44		66		3		131
Compensation and benefits	28		37		18		39		122
Commissions	—		22		—		—		22
Loan processing expense	1		9		12		1		23
General, administrative and other	34		4		23		28		89
Total noninterest expense	63		72		53		68		256
Income (loss) before indirect overhead allocations and income taxes	78		24		17		(42)		77
Indirect overhead allocation (expense) income	(12)		(16)		(7)		35		—
Provision for income taxes	11		—		2		4		17
Net income	$	55	$	8	$	8	$	(11)	$	60

Intersegment revenue (expense)	$	14	$	5	$	10	$	(29)	$	—

Average balances
Loans held-for-sale	$	5	$	3,566	$	—	$	—	$	3,571
Loans with government guarantees	—		1,161		—		—		1,161
Loans held-for-investment (2)	11,577		1,766		—		(4)		13,339
Total assets	11,962		7,807		134		3,964		23,867
Deposits	11,744		34		4,764		946		17,488

(1)Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients.

(2) Includes adjustment made to reclassify operating lease assets to LHFI.


	Three Months Ended June 30, 2021
	Community Banking		Mortgage Originations		Mortgage Servicing		Other (1)		Total
	(Dollars in millions)
Summary of Operations
Net interest income	$	149	$	58	$	3	$	(27)	$	183
Provision (benefit) for credit losses	1		(2)		—		(43)		(44)
Net interest income after benefit for credit losses	148		60		3		16		227
Net gain on loan sales	—		168		—		—		168
Loan fees and charges	—		18		19		—		37
Net return on mortgage servicing rights	—		(5)		—		—		(5)
Loan administrative (expense) income	—		(9)		40		(3)		28
Other noninterest income	15		2		—		7		24
Total noninterest income	15		174		59		4		252
Compensation and benefits	25		49		16		32		122
Commissions	1		50		—		—		51
Loan processing expense	2		12		8		—		22
General, administrative and other	1		20		21		52		94
Total noninterest expense	29		131		45		84		289
Income (loss) before indirect overhead allocations and income taxes	134		103		17		(64)		190
Indirect overhead allocation (expense) income	(9)		(16)		(5)		30		—
Provision (benefit) for income taxes	26		18		3		(4)		43
Net income (loss)	$	99	$	69	$	9	$	(30)	$	147

Intersegment revenue (expense)	$	45	$	(1)	$	11	$	(55)	$	—

Average balances
Loans held-for-sale	$	22	$	6,880	$	—	$	—	$	6,902
Loans with government guarantees	—		2,344		—		—		2,344
Loans held-for-investment (2)	11,827		1,838		—		24		13,689
Total assets	12,175		12,021		268		3,547		28,011
Deposits	11,694		23		6,179		1,174		19,070

(1)Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients.

(2) Includes adjustment made to reclassify operating lease assets to LHFI.


	Six Months Ended June 30, 2022
	Community Banking		Mortgage Originations		Mortgage Servicing		Other (1)		Total
	(Dollars in millions)
Summary of Operations
Net interest income	$	258	$	102	$	7	$	(9)	$	358
Provision (benefit) for credit losses	35		(3)		—		(45)		(13)
Net interest income after benefit for credit losses	223		105		7		36		371
Net gain on loan sales	—		72		—		—		72
Loan fees and charges	—		13		43		—		56
Net return on mortgage servicing rights	—		51		—		—		51
Loan administrative (expense) income	(1)		(14)		87		(6)		66
Other noninterest (expense) income	37		(4)		—		13		46
Total noninterest income	36		118		130		7		291
Compensation and benefits	56		82		34		77		249
Commissions	1		47		—		—		48
Loan processing expense	3		18		21		2		44
General, administrative and other	52		15		44		65		176
Total noninterest expense	112		162		99		144		517
Income (loss) before indirect overhead allocations and income taxes	147		61		38		(101)		145
Indirect overhead allocation (expense) income	(22)		(31)		(13)		66		—
Provision (benefit) for income taxes	23		4		5		—		32
Net income (loss)	$	102	$	26	$	20	$	(35)	$	113

Intersegment revenue (expense)	$	36	$	14	$	19	$	(69)	$	—

Average balances
Loans held-for-sale	$	11	$	4,187	$	—	$	1	$	4,199
Loans with government guarantees	—		1,282		(1)		—		1,281
Loans held-for-investment (2)	11,261		1,605		—		(3)		12,863
Total assets	11,646		8,248		150		3,969		24,013
Deposits	11,874		38		4,890		985		17,787

(1)Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients.

(2) Includes adjustment made to reclassify operating lease assets to LHFI.


	Six Months Ended June 30, 2021
	Community Banking		Mortgage Originations		Mortgage Servicing		Other (1)		Total
	(Dollars in millions)
Summary of Operations
Net interest income	$	305	$	114	$	7	$	(55)	$	371
Provision (benefit) for credit losses	(13)		(4)		—		(55)		(72)
Net interest income after benefit for credit losses	318		118		7		—		443
Net gain on loan sales	—		395		—		—		395
Loan fees and charges	1		41		37		—		79
Net return on mortgage servicing rights	—		(5)		—		—		(5)
Loan administrative (expense) income	—		(20)		80		(6)		54
Other noninterest income	34		5		—		14		53
Total noninterest income	35		416		117		8		576
Compensation and benefits	51		103		32		80		266
Commissions	1		111		—		—		112
Loan processing expense	3		23		15		2		43
General, administrative and other	33		42		44		96		215
Total noninterest expense	88		279		91		178		636
Income (loss) before indirect overhead allocations and income taxes	265		255		33		(170)		383
Indirect overhead allocation (expense) income	(19)		(35)		(10)		64		—
Provision (benefit) for income taxes	52		46		5		(16)		87
Net income (loss)	$	194	$	174	$	18	$	(90)	$	296

Intersegment revenue (expense)	$	59	$	(3)	$	22	$	(78)	$	—

Average balances
Loans held-for-sale	$	11	$	7,170	$	—	$	—	$	7,181
Loans with government guarantees	—		2,422		—		—		2,422
Loans held-for-investment (2)	12,314		1,958		—		27		14,299
Total assets	12,668		12,515		329		3,520		29,032
Deposits	11,749		19		6,665		1,121		19,554

(1)Includes offsetting adjustments made to reclassify income and expenses relating to operating leases and custodial deposits for subservicing clients.

(2) Includes adjustment made to reclassify operating lease assets to LHFI.

FLAGSTAR BANCORP INC 10-Q