By Rhonda Miller
PBN Staff Writer
TROY, Mich. – Flagstar Bancorp Inc. has been notified by the New York Stock Exchange that it is in compliance with the exchange’s pricing rules and no longer faces possible delisting, according to Crain’s Detroit Business.
Flagstar had been out of compliance because of a share price below $1. On Sept. 26, shareholders approved a 10-for-1 reverse stock split, which went into effect Oct. 10.
The share price has remained above $1 for 30 consecutive trading days, which put Flagstar back in compliance with stock exchange rules. As a result, the “BC” indicator following Flagstar’s stock symbol was removed by the NYSE.
Flagstar’s shares first dipped below $1 on July 27, 2011, after the company reported a wider-than-expected loss of $74.9 million in the second quarter.
In addition, Flagstar entered into a consent order with the Office of the Comptroller of the Currency in October. Under the consent order, the bank must adopt or revise plans, policies and procedures related to, among other things, regulatory capital, enterprise risk management and liquidity after submitting them to the OCC for review.
Michigan-based Flagstar has a commercial lending office in Providence.