Flagstar Reports Financial Revisions

Flagstar Bancorp, Troy, Mich., has announced a $0.04 per share reduction in its fourth-quarter earnings to defer a gain from an interest rate hedging position it had terminated.The change will result in corresponding increases of approximately $0.02 per share in 2005 and 2006, the company said. Flagstar also reported an unrelated adjustment to its retained earnings to correct a cumulative overstatement of interest accrued on its $10.2 billion portfolio of mortgage loans. The latter adjustment will not affect the company's 2004 earnings or its 2005 earnings guidance, the company said. Flagstar can be found online at http://www.flagstar.com.