Profitability has returned to Flagstaff Bancorp for the first quarter, according to recent reports. Despite the good news overall the company's mortgage revenue took a 15% hit.
National Mortgage News reported that the hit was due to "margin compression and lower volume."
"The Troy, Mich., company generated net income of $35 million for the first quarter, compared with a fourth quarter loss of $45 million and net income of $27 million for the first quarter of 2017," according to the report.
"Flagstar also took a $80 million noncash charge in the fourth quarter because it needed to revalue its deferred tax asset following the passage of the Tax Cuts and Jobs Act."
A Flagstar infographic showed the company with 77 basis points for gain-on-sale margin for the first quarter of 2018, however, it pales in comparison to the 91 BPS in the fourth quarter of 2017. It also falls 3 BPS behind the first-quarter for 2017.
"Flagstar originated $7.9 billion of residential first mortgages in the quarter, down from $9.7 billion in the fourth quarter but up from $5.9 billion in the first quarter last year," according to NMN.
To learn more about Flagstar's profitability and mortgage revenue woes in the first quarter of 2018, click on the image above.