Flagstar Bancorp, Inc. announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. The company reported a fourth quarter 2017 net loss of $45 million, or $0.79 per diluted share, and adjusted net income of $35 million, or $0.60 per diluted share, after adjusting for a non-cash charge to the provision for income taxes of $80 million, or $1.37 per diluted share. The company reported net income of $40 million, or $0.70 per diluted share, in the third quarter 2017, and $28 million, or $0.49 per diluted share, in the fourth quarter 2016. Net interest income was $107 million against $87 million a year ago. Income before income taxes was $51 million against $42 million a year ago. Negative return on average assets was 1.05% against return on average assets of 0.78% a year ago. Negative return on average equity was 12.07% against return on average equity of 8.60% a year ago.

Full year 2017 net income was $63 million, or $1.09 per diluted share, as compared to full year 2016 net income of $171 million, or $2.66 per diluted share. Excluding the tax charge in the fourth quarter 2017, the Company had adjusted 2017 net income of $143 million, or $2.47 per diluted share, as compared to adjusted 2016 net income of $155 million, or $2.38 per diluted share. On an adjusted basis, the Company realized a 4% increase in diluted earnings per share for the full year 2017. Net interest income was $390 million against $323 million a year ago. Income before income taxes was $211 million against $258 million a year ago. Book value per common share was $24.40 against $23.50 a year ago. Return on average assets was 0.40% against 1.23% a year ago. Return on average equity was 4.41% against return on average equity of 11.69% a year ago.

Net charge-offs in the fourth quarter 2017 were $2 million, or 0.11% of HFI loans, compared to $2 million, or 0.08% of such loans in the prior quarter.

For the first quarter, the company expects net interest income will be fairly steady with higher homebuilder and consumer loans largely offsetting the decline in loans held for sale and warehouse loans. The company anticipates a fairly stable net interest margin. The company expects new effective tax rate to decline to approximately 20%.