Thomas J. Hammond has retired as chairman of Flagstar Bancorp, three weeks after his son, Mark, was replaced by an outsider as president and chief executive officer.
The $16.8 billion-asset Troy, Mich., thrift company said after the market closed Thursday that its board would soon meet to elect a new chairman.
Thomas Hammond noted in a press release that it has been almost 10 months since MatlinPatterson Global Advisors LLC invested $350 million in Flagstar, taking a 70% stake.
Joseph Campanelli, the new president and CEO, "has strong banking experience and understands the decisions necessary for Flagstar to be competitive in this business environment," Hammond said.
Mark Hammond announced this summer that he intended to step down in January, but he left the company earlier, when Campanelli was hired on Sept. 29.
Campanelli led Sovereign Bancorp Inc. of Wyomissing, Pa., for a turbulent two years before leaving in September 2008.
Flagstar is another cleanup job for him.
The company, reeling from trouble with its mortgage lending business, has lost $450 million since 2007, including $76.6 million in the second quarter.
And despite heavy chargeoffs, nonperforming assets remain elevated, totaling $1.1 billion, or 6.64% of total assets, at June 30. The nonperformers rose 120% from a year earlier and 10% from the first quarter.
The company is scheduled to report its third-quarter results on Nov. 3.
Thomas Hammond founded Flagstar's thrift in 1987. He had been the holding company's chairman since its formation in 1993.