TROY, Mich., Feb. 19 /PRNewswire-FirstCall/ -- The Board of Directors of Flagstar Bancorp, Inc. (NYSE: FBC) announced that it will suspend payment of a dividend to shareholders for the first quarter 2008.
"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," said Mark Hammond, Chief Executive Officer and Vice Chairman. Mr. Hammond added that "the Board will reassess the dividend in the second quarter based upon first quarter results and the state of the capital and residential real estate markets."
Flagstar Bancorp, with $15.8 billion in total assets, is the largest publicly held savings bank headquartered in the Midwest. At December 31, 2007, Flagstar operated 164 banking centers in Michigan, Indiana and Georgia and 143 home loan centers in 27 states. Flagstar Bank originates loans nationwide and is one of the leading originators of conforming single-family residential mortgage loans.
SOURCE Flagstar Bancorp, Inc.