Flagstar Bancorp, Inc.
Ticker:FLGS 2600 Telegraph Road
Exchange:NASDAQ-National Market Bloomfield Hills, MI 48302
Industry:Financial (SIC Code 6035) (810) 338-7700

Offering Information
Type of Shares:Common Shares Filing Date:2/12/97
U.S. Shares:5,000,000 Offer Date:4/30/97
Non-U.S. Shares:0 Filing Range:$19.00 - $20.00
Primary Shares:2,200,000 Offer Price:$13.00
Secondary Shares:2,800,000 Gross Spread:$0.86
Offering Amount: $97,500,000 Selling:$0.52
Expenses: - Reallowance:$0.10
Shares Out After:13,450,000

Primary Underwriting Group
ManagerTierPhone
Lehman Brothers IncorporatedLead Manager (212) 526-8100
PaineWebber IncorporatedCo-manager (212) 713-2626
Roney & Co.Co-manager (313) 225-5741

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Reinhart, Boerner, Van Deuren, Norris & Rieselbach
Bank's Law Firm: Simpson, Thacher & Bartlett
Auditor: Grant Thornton

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
9 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 9/30/96 9/30/95 9/30/96
Revenue:$108.29$99.51$75.84Assets:$1,069.53
Net Income:$15.48$11.34$10.66Curr Assets:
EPS:$1.37$1.01$0.94Liabilities:$996.75
Prior EPS:$1.42-$0.09-$0.26Curr Liabilities:
Cash Flow/Oper:-$0.23Equity:$72.78
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is a Michigan-based thrift holding company which is one of the largest originators of conforming single-family mortgage loans in the United States. Formerly known as FSSB Holding Corporation, the company is providing a full range of retail banking services in southern Michigan and in originating, purchasing and servicing residential mortgage loans on a nationwide basis. For 1996, the company ranked third among thrifts in mortgage loan originations, fourth in the United States in table-funded wholesale mortgage loan production and fourteenth in total mortgage loan production as reported in Inside Mortgage Finance, and was the largest privately owned mortgage originator in the United States. Prior to the Offering, all of the common stock of the company has been owned by the Hammond family, which includes Thomas J. Hammond, the Chairman, Chief Executive Officer and founder of the company, and Mark T. Hammond, the Vice Chairman and President of the company.

Use of Proceeds
The proceeds from the proposed offering will be contributed to the Bank to be used for general corporate purposes and to provide additional capital to the Bank, to retain more servicing rights and to grow and expand banking operations through the acquisition or establishment of new branches.

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