Flagstar Announces One-for-Ten Reverse Stock Split Effective Today
TROY, Mich., Oct. 10, 2012 /PRNewswire/ -- Flagstar Bancorp, Inc. (NYSE: FBC) ("Flagstar" or the "Company") announced that effective at 4:15 p.m. EDT today, shares of its common stock will be subject to a reverse split on a one-for-ten basis. Flagstar shares are expected to trade on a post-split basis when the markets open tomorrow on Thursday, October 11, 2012, will continue to trade on the New York Stock Exchange under the symbol FBC, and have been assigned a new CUSIP number - 337930 705.
Flagstar stockholders will receive one new share of Flagstar common stock for every ten shares held at the effective time. The reverse stock split will reduce the number of shares of outstanding common stock from approximately 558.3 million to approximately 55.8 million. The number of authorized shares of common stock will be reduced from 700 million to 70 million. Proportional adjustments will be made to Flagstar's outstanding options, warrants and other securities entitling their holders to purchase or receive shares of Flagstar common stock. In lieu of fractional shares, stockholders will receive cash. Cash payments for fractional shares will be determined on the basis of the stock's closing price on October 9, 2012, adjusted for the reverse stock split. The reverse stock split will not negatively affect any of the rights that accrue to holders of Flagstar outstanding options, warrants and other securities entitling their holders to purchase or receive shares of common stock.
Stockholders with certificated shares are required to exchange their stock certificates for new stock certificates representing the appropriate number of shares of common stock resulting from the reverse stock split. Flagstar's transfer agent, Registrar and Transfer Company, is the exchange agent for the reverse stock split and will distribute a letter of transmittal to shareholders with instructions for surrendering old stock certificates.
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts, assumptions, risks and uncertainties that are difficult to predict and could cause actual results or outcomes to differ materially from those expressed in a forward-looking statement. Forward-looking statements contained in this press release and any information related to expectations about future events or results are based upon information available to the Company as of the date hereof. Forward-looking statements can be identified by such words as "anticipates," "intends," "plans," "seeks," "believes," "expects", "estimates," and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements made regarding the Company's results of operations, current expectations, plans or forecasts of core business drivers, credit related costs, asset quality, capital adequacy and liquidity, and ability to comply with NYSE continued listing standards, the implementation of the Company's business plan and growth strategies, the impact of the reverse stock split and other similar matters. Although the Company believes that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, contingencies, and other factors. Accordingly, the Company cannot give you any assurance that its expectations will in fact occur or that actual results will not differ materially from those expressed or implied by such forward-looking statements. The Company cautions you not to place undue reliance on any forward-looking statement and to consider all of the following uncertainties and risks, as well as those more fully discussed in the Company's filings with the Securities and Exchange Commission ("SEC"), including but not limited to, its Forms 10-K and 10-Q: the Company's ability to cure, and in the future comply with, the NYSE's minimum stock price standard for continued listing and the impact of the reverse stock split on the interest of institutional investors and stock research analysts, eligibility for stock indices, and the liquidity and price per share of the common stock. Except to the extent required under the federal securities laws and the rules and regulations promulgated by the SEC, the Company undertakes no obligation to update any such statement to reflect events or circumstances after the date on which it is made.
Flagstar Bancorp, Inc. (NYSE: FBC) is the holding company for Flagstar Bank, a full-service financial institution offering a range of products and services to consumers, businesses, and homeowners. With $14.4 billion in total assets at June 30, 2012, Flagstar is the largest publicly held savings bank headquartered in the Midwest and the largest financial institution headquartered in Michigan. As of June 30, 2012, Flagstar operated 111 branches in Michigan, 30 home loan centers in13 states, and a total of four commercial banking offices in Massachusetts, Connecticut, and Rhode Island. Flagstar originates loans nationwide and is one of the leading originators of residential first mortgage loans in the country. For more information, please visit flagstar.com.
SOURCE Flagstar Bancorp, Inc.