Flagstar to Lower '02-'04 Earnings

Flagstar Bancorp Inc., Troy, Mich., has announced that it will restate earnings for 2002, 2003, and 2004, resulting in an overall $5.9 million reduction in net earnings.The company said the restatement was necessitated by the discovery of errors in the computation of state tax liabilities that understated the liabilities by $9.5 million. The restatement will reduce net earnings by approximately $2.5 million for 2002, approximately $2.4 million for 2003, and approximately $1.0 million for 2004, Flagstar said. The mortgage lender reported net earnings of $79.9 million ($1.25 per share) for 2005, compared with $142.7 million ($2.22 per share) for 2004. (The 2004 figures reflect the aforementioned restatement, the company said.) Flagstar can be found online at http://www.flagstar.com.