Troy, Mich.-based Flagstar Bancorp Inc. has announced that its Flagstar Bank FSB
has signed a definitive agreement to acquire 52 Wells Fargo Bank branches in Indiana, Michigan, Wisconsin and Ohio, with approximately $2.3 billion in deposits and $130 million in loans, along with certain related assets.
The 52-branch purchase covers 33 locations in Indiana, including 26 branches in the Fort Wayne metro market, along with 14 branches in the Upper Peninsula of Michigan (number one market share), four in Wisconsin and one in Ohio. The transaction will raise Flagstar’s operations to 151 branches in the Midwest, plus eight in California. Flagstar stated it would keep all branches and retain all Wells Fargo employees.
Financial details of the transaction were not immediately disclosed, although Flagstar said it will pay an effective deposit premium of approximately seven percent based on balances as of Dec. 31, 2017.
"We're excited to welcome the Wells Fargo employees and customers to Flagstar Bank," said Alessandro DiNello, President and Chief Executive Officer of Flagstar Bancorp. "Wells Fargo's primary goal throughout the negotiation of this transaction has been to make sure its customers and employees experience a seamless transition to Flagstar, and we will ensure that happens. We are confident customers will like Flagstar's big bank lineup of quality products and services delivered with the high-touch personal service of a community bank. Flagstar has a long tradition of supporting its communities and fully expects to continue its commitment to good corporate citizenship and community reinvestment in our expanded market area."