Flagstar Bancorp Inc. of Troy, Mich., reported a third-quarter loss of $62.1 million on heavy credit costs.
The thrift company more than doubled its loan-loss provision from the previous quarter and almost tripled it from a year earlier, to $89.6 million. It reported net income of $15.7 million in the second quarter, and a loss of $32.1 million in the third quarter of last year.
Flagstar also recorded a $17.1 million loss associated with the collapse of Lehman Brothers Holdings Inc., and Lehman's "inability to honor a commitment to purchase $65 million in excess servicing," it said Thursday.
Deposits fell 0.8% from June 30, to $7.4 billion at Sept. 30, and assets fell 3%, to $14.2 billion. In July, during its second-quarter earnings conference call, Flagstar had said it planned to reduce its assets to between $14 billion and $14.2 billion by yearend.
In its mortgage banking business, originations fell 18.3% from the previous quarter and 1.5% from a year earlier, to $6.7 billion.
