Jan 16 - Flagstar Bancorp Inc., Troy, Mich., (NYSE: FBC) has implemented an organizational restructuring to reduce expenses in light of the current operating environment and consistent with its previously communicated strategy of optimizing its cost structure across all business lines.
"In 2013 we made important progress in resolving certain legacy issues, and we are now focused on further strengthening our financial and operational foundation," said Alessandro (Sandro) DiNello, Flagstar's president and CEO. "We are committed to being a highly efficient and best-in-class operator in each of our businesses, and this restructuring will align our infrastructure with today's business environment, including the significantly reduced mortgage origination market. The decision to downsize our workforce was not made lightly, but is a necessary step on the path to achieving the company's long-term goals. We appreciate the many contributions of our dedicated employees and we remain committed to community banking in Michigan and mortgage origination and servicing nationally. These organizational changes will have no impact on our clients."
As part of this restructuring initiative, the company will reduce staffing levels across the organization by approximately 600 positions from its Sept. 30, 2013, headcount level. Flagstar expects the restructuring will generate annualized cost savings of approximately $40 million when fully implemented by the end of the first quarter of 2014. The company expects to incur a pre-tax charge of approximately $5.2 million related to this restructuring.
Flagstar is a full-service financial institution offering a range of products and services to consumers, businesses, and homeowners. With $11.8 billion in total assets at Sept. 30, 2013, Flagstar is the largest bank headquartered in Michigan. Flagstar operates 111 banking centers, all of which are located in Michigan, and 45 home lending centers located in 19 states, which primarily originate one-to-four family residential first mortgage loans. Originating loans nationwide, Flagstar is one of the leading originators of residential first mortgage loans. For more information, visit flagstar.com.