Flagstar Bancorp Inc. in Troy, Mich., is more than halfway toward its goal of raising $500 million in new capital.
The $14.8 billion-asset thrift company announced late Wednesday that MatlinPatterson Global Advisors LLC, a New York private-equity firm, injected $300 million into Flagstar as part of a rights offering announced late last year.
The company also reported that, along with its Flagstar Bank thrift unit, it has entered into supervisory agreements with the Office of Thrift Supervision.
The agreements call for Flagstar Bank to submit plans to increase core deposits, improve asset quality, strengthen loan administration and reduce certain concentrations.
The order also prohibits the bank from expanding in excess of an amount equal to the net interest credited on deposits during any quarter. The agreements do not call for the bank to reach specific capital ratio goals.
Flagstar has been rocked by credit-quality issues. As of Sept. 30 its thrift was well capitalized, but the company's nonperforming assets were $1.25 billion, or 8.41% of total assets.
Flagstar hopes to raise another $200 million from shareholders through the offering.
