UPDATE 1-Flagstar Bancorp says may suspend dividend
(Recasts, adds details, share movement)
Jan 30 (Reuters) - Bank holding company Flagstar Bancorp Inc (FBC.N) said on Wednesday it may suspend dividend payment to conserve cash till the credit crisis eases.
On Tuesday, the company had posted a quarterly loss as provision for loan losses rose significantly from a year ago.
Shares of the company were down more than 14 percent at $7.13 in afternoon trade, making them one of the top losers on the New York Stock Exchange.
For the fourth quarter, the company reported a net loss of $30.1 million, or 50 cents a share, compared with earnings of $6.9 million, or 11 cents per share, a year ago.
Provision for loan losses for the quarter rose to $38.4 million from $8.2 million in the year-ago period.
In a conference call on Wednesday, the bank holding company said until a more clearer picture on the credit front emerges, it will only originate mortgage loans that can be sold to government-sponsored enterprises. (Reporting by Avishek Mishra in Bangalore; Editing by Deepak Kannan)
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