Flagstar Bancorp announces impact of Tax Cuts and Jobs Act
Flagstar Bancorp announced a one-time, non-cash charge to the provision for income taxes of approximately $80M, or $1.38 per diluted share, resulting from new tax legislation that required the revaluation of its deferred tax asset at a lower corporate statutory rate. There was no significant impact to the company's regulatory capital ratios or liquidity. Flagstar Bancorp CEO Alessandro DiNello said, "We realized a modest decline in our tangible equity ratio from the new tax legislation, but expect a solid earnings benefit ahead. A lower corporate tax rate will provide a boost to earnings. While longer term, we expect some of the tax savings may be lost to competitive factors, we are encouraged that higher earnings, along with expected regulatory capital relief, will accelerate our capital formation."