Holding Company Only Financial Statements
The following are unconsolidated financial statements for the Company. These condensed financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto. In addition, the Holding Company's principal sources of funds are cash dividends paid by the Bank to the Holding Company and other subsidiaries, investment income and borrowings. Federal laws and regulations limit the amount of dividends or other capital distributions that the Bank may pay the Holding Company. The Bank must seek prior approval from the OCC at least 30 days before it may make a dividend payment or other capital distribution to the Holding Company.
Flagstar Bancorp, Inc. Condensed Unconsolidated Statements of Financial Condition (Dollars in millions) | | | | | | | | | | December 31, | | 2015 | | 2014 | Assets | | | | Cash and cash equivalents | $ | 37 |
| | $ | 46 |
| Investment in subsidiaries (1) | 1,738 |
| | 1,571 |
| Other assets | 50 |
| | 43 |
| Total assets | $ | 1,825 |
| | $ | 1,660 |
| Liabilities and Stockholders’ Equity | | | | Liabilities | | | | Long term debt | $ | 247 |
| | $ | 248 |
| Total interest paying liabilities | 247 |
| | 248 |
| Other liabilities | 49 |
| | 39 |
| Total liabilities | 296 |
| | 287 |
| Stockholders’ Equity | | | | Preferred Stock | 267 |
| | 267 |
| Common stock | 1 |
| | 1 |
| Additional paid in capital | 1,486 |
| | 1,482 |
| Accumulated other comprehensive income | 2 |
| | 8 |
| Accumulated deficit | (227 | ) | | (385 | ) | Total stockholders’ equity | 1,529 |
| | 1,373 |
| Total liabilities and stockholders’ equity | $ | 1,825 |
| | $ | 1,660 |
|
| | (1) | Includes unconsolidated trusts. |
Flagstar Bancorp, Inc. Condensed Unconsolidated Statements of Operations (Dollars in millions) | | | | | | | | | | | | | | For the Years Ended December 31, | | 2015 | | 2014 | | 2013 | Expenses | | | | | | Interest | $ | 7 |
| | $ | 7 |
| | $ | 7 |
| General and administrative | 13 |
| | 5 |
| | 9 |
| Total | 20 |
| | 12 |
| | 16 |
| Loss before undistributed loss of subsidiaries | (20 | ) | | (12 | ) | | (16 | ) | Income (loss) equity in undistributed of subsidiaries | 172 |
| | (63 | ) | | 247 |
| Income (loss) before income taxes | 152 |
| | (75 | ) | | 231 |
| Benefit for income taxes | 6 |
| | 6 |
| | 36 |
| Net income (loss) | 158 |
| | (69 | ) | | 267 |
| Preferred stock dividends/accretion | — |
| | (1 | ) | | (6 | ) | Net income (loss) from continuing operations | 158 |
| | (70 | ) | | 261 |
| Other comprehensive (loss) income (2) | (6 | ) | | 13 |
| | (3 | ) | Comprehensive income (loss) | $ | 152 |
| | $ | (57 | ) | | $ | 258 |
|
| | (1) | Certain amounts within the financial statements have been restated to conform to current presentation |
| | (2) | See Consolidated Statements of Comprehensive Income for other comprehensive income (loss) detail. |
Flagstar Bancorp, Inc. Condensed Unconsolidated Statements of Cash Flows (Dollars in millions) | | | | | | | | | | | | | | For the Years Ended December 31, | | 2015 | | 2014 | | 2013 | Net income (loss) | $ | 158 |
| | $ | (69 | ) | | $ | 267 |
| Adjustments to reconcile net loss to net cash provided by operating activities | | | | | | Equity in (income) loss of subsidiaries | (172 | ) | | 63 |
| | (247 | ) | Stock-based compensation | 3 |
| | 3 |
| | 3 |
| Change in other assets | (6 | ) | | (3 | ) | | (36 | ) | Provision for deferred tax benefit | 1 |
| | — |
| | — |
| Change in other liabilities | 9 |
| | 4 |
| | 7 |
| Net cash used in operating activities | (7 | ) | | (2 | ) | | (6 | ) | Investing Activities | | | | | | Net change in investment in subsidiaries | (2 | ) | | (2 | ) | | — |
| Net cash used in investment activities | (2 | ) | | (2 | ) | | — |
| Net decrease in cash and cash equivalents | (9 | ) | | (4 | ) | | (6 | ) | Cash and cash equivalents, beginning of year | 46 |
| | 50 |
| | 56 |
| Cash and cash equivalents, end of year | $ | 37 |
| | $ | 46 |
| | $ | 50 |
|
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