Flagstar Bank FSB
has signed a definitive agreement to acquire eight Desert Community Bank (DCB) branches in San Bernardino County, Calif., with approximately $600 million in deposits and $70 million in loans, from East West Bank along with certain related assets.
"I would like to welcome the Desert Community team to the Flagstar family," said Alessandro DiNello, President and Chief Executive Officer of Flagstar Bancorp. "We've been looking to acquire a high-quality deposit franchise, but they've been difficult to find. The Desert Community branches fit the bill. The acquisition provides low-cost, stable funding to continue growing our balance sheet. It also combines a successful deposit franchise with a significant Flagstar presence already on the West Coast, including our Opes Advisors division
and warehouse lending and home builder financing activities. Expanding our deposit franchise into California made a lot of sense because it's a state where we already do significant business.”
DCB, headquartered in Victorville, Calif., holds the number two deposit market share in the High Desert Region of San Bernardino County, the fifth largest county in California with a total population of 2.1 million. San Bernardino County has realized solid deposit growth of approximately seven percent on an annual basis since 2012.