Flagstar Announces Sale of Remaining Northeast-Based Commercial Loan Portfolio

Flagstar Announces Sale of Remaining Northeast-Based Commercial Loan Portfolio

PR Newswire

TROY, Mich., Feb. 6, 2013

TROY, Mich., Feb. 6, 2013 /PRNewswire/ -- Flagstar Bancorp, Inc. (NYSE: FBC),
("Flagstar"), the holding company for Flagstar Bank, FSB (the "Bank"), today
announced that, effective February 5, 2013, the Bank has entered into a
definitive Asset and Portfolio Purchase and Sale Agreement (the "Agreement")
under which Customers Bank ("Customers") will acquire substantially all of
Flagstar's remaining Northeast-based commercial loan portfolio.

Under the terms of the Agreement, Customers will acquire $187.6 million in
commercial loan commitments, of which $150.9 million is currently outstanding.
The loans sold consist primarily of commercial and industrial loans.
Flagstar expects that the total purchase price will be approximately $148.9
million, which represents 98.7% of the outstanding balance.

Flagstar expects that a vast majority of these assets will be transferred
during the first quarter 2013. Upon completion of these transfers, and
completion of the transfers associated with the Northeast-based commercial
loan sale previously announced on January 2, 2013, Flagstar expects its
remaining Northeast-based commercial loan portfolio balance to be
approximately $19.3 million. As part of the Agreement, and subject to receipt
of customary third party consents, Customers will also assume the leases for
two of Flagstar's commercial banking offices in the Northeast.

"This agreement represents another milestone as we enhance our focus on our
community banking operation in Michigan and our national mortgage business,"
said Michael Tierney, Flagstar's Chief Executive Officer. "Going forward, our
commercial banking efforts will primarily relate to small business and middle
market companies in Michigan. We thank our commercial banking team in the
Northeast for their efforts in building a strong portfolio of loans."

Sandler O'Neill Mortgage Finance L.P., an affiliate of Sandler O'Neill +
Partners, L.P., is acting as exclusive financial advisor and agent to Flagstar
in connection with the asset sale. Bracewell & Giuliani and Nutter, McClennen
& Fish are serving as legal advisors to Flagstar.

About Flagstar

Flagstar Bancorp, Inc. (NYSE: FBC) is the holding company for Flagstar Bank, a
full-service financial institution offering a range of products and services
to consumers, businesses, and homeowners. With $14.1 billion in total assets
at December 31, 2012, Flagstar is the largest publicly held savings bank
headquartered in Michigan. Flagstar originates loans nationwide and is one of
the leading originators of residential first mortgage loans. For more
information, please visit flagstar.com.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, as amended.
Forward-looking statements, by their nature, involve estimates, projections,
goals, forecasts, assumptions, risks and uncertainties that are difficult to
predict and could cause actual results or outcomes to differ materially from
those expressed in a forward-looking statement. Forward-looking statements
contained in this press release and any information related to expectations
about future events or results are based upon information available to the
Company as of the date hereof. Forward-looking statements can be identified
by such words as "anticipates," "intends," "plans," "seeks," "believes,"
"expects", "estimates," and similar references to future periods. Examples of
forward-looking statements include, but are not limited to, statements made
regarding the Company's current expectations, plans or forecasts of its core
business drivers, credit related costs, asset quality, capital adequacy and
liquidity, the implementation of the Company's business plan and growth
strategies, the suspension of dividend payments on preferred stock, the
deferral of interest payment on trust preferred securities, the result of
improvements to the Company's servicing processes, and other similar matters.
Although we believe that these forward-looking statements are based on
reasonable estimates and assumptions, they are not guarantees of future
performance and are subject to known and unknown risks, uncertainties,
contingencies, and other factors. Accordingly, we cannot give you any
assurance that our expectations will in fact occur or that actual results will
not differ materially from those expressed or implied by such forward-looking
statements. We caution you not to place undue reliance on any forward-looking
statement and to consider all of the following uncertainties and risks, as
well as those more fully discussed in the Company's filings with the
Securities and Exchange Commission ("SEC"), including, but not limited to, our
Forms 10-K and 10-Q: volatile interest rates that impact, among other things,
the mortgage banking business, our ability to originate loans and sell assets
at a profit, prepayment speeds and our cost of funds; changes in regulatory
capital requirements or an inability to achieve or maintain desired capital
ratios; actions of mortgage loan purchasers, guarantors and insurers regarding
repurchases and indemnity demands and uncertainty related to foreclosure
procedures; uncertainty regarding pending and threatened litigation; our
ability to control credit related costs and forecast the adequacy of reserves;
the imposition of regulatory enforcement actions against us; our compliance
with the Consent Order with the Office of the Comptroller of the Currency,
which was disclosed on October 23, 2012; and the commercial loan sale may not
have the projected impact or be consummated in a timely manner. Except to the
extent required under the federal securities laws and the rules and
regulations promulgated by the SEC, the Company undertakes no obligation to
update any such statement to reflect events or circumstances after the date on
which it is made.

SOURCE Flagstar Bancorp, Inc.

Contact: Bradley T. Howes, Investor Relations Officer, +1-248-312-2000