Flagstar Bancorp Suspends Dividend

By Associated Press February 19, 2008 Comments (0)

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Flagstar Bancorp Inc. said Tuesday its board suspended its first-quarter dividend due to turmoil in the capital markets.

"Although we are seeing strong loan production, increasing gain on sale margins and improved net interest margins, the board believes that it is prudent to preserve capital by suspending the dividend until the capital markets normalize and residential real estate shows signs of improvement," Mark Hammond, chief executive and vice chairman, said in a statement.

Flagstar trimmed its quarterly dividend to 10 cents from 15 cents in February 2007 and then halved it to 5 cents per share in November.

The company, which has $15.8 billion in total assets and operates 164 branches, will reassess the dividend in the second quarter after reviewing its first-quarter results and the real estate markets.

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DocumentId: 580709, ~/articles/articlehandler.aspx, 5/22/2008 4:04:24 PM

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