While the dividend dropped, technically they did an increase of .8% adjusted if you consider the 2008 5% stock dividend. I think they are holding cash for potential losses AND also potential opportunities. I am doubtful they'll be paying 3x book again for acquisitions.
We can't be sure but my guess would be that they smell blood in the streets and want to use their cash to acquire the wounded at fire sale prices. You can't do that unless you maximize your liquidity. WW