Flagstar Bancorp Inc. projects an approximate $80 million one-time, noncash charge to its fourth-quarter provision for income taxes.
The $1.38-per-share hit is from the new tax rate's impact on the Troy, Mich.-based company's valuation of its deferred tax assets. Flagstar CEO Alessandro DiNello said a "modest decline" is expected in the company's tangible equity ratio, as well as for "some of the tax savings [to] be lost to competitive factors." However, the company is also projecting a "solid earnings benefit" from the lower rate.
