Flagstar Bancorp Inc., which has its headquarters in Troy, today announced that Flagstar Bank has signed an agreement to acquire 52 Wells Fargo Bank branches in Indiana, Michigan, Wisconsin, and Ohio. The deal will include $2.3 billion in deposits and $130 million in loans, along with related assets.
Flagstar will pay a deposit premium of approximately 7 percent based on balances as of December 31, 2017. Management expects the transaction to be accretive to 2019 earnings per share.
â€œWe’re excited to welcome the Wells Fargo employees and customers to Flagstar Bank,â€ saysÂ Alessandro DiNello, president and CEO of Flagstar Bancorp Inc. â€œWells 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.
â€œWe are confident customers will like Flagstar’s big bank line-up 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.â€
The 52-branch acquisition is for 33 locations in Indiana, including 26 branches in Fort Wayne, 14 branches in the Upper Peninsula, four locations in Wisconsin, and one in Ohio.
â€œBeing able to increase our presence in the Midwest market â€” a geography we know well and find very attractive â€” is a terrific opportunity for us,â€ says DiNello. â€œThis transaction significantly expands our banking footprint, more than doubling our customer base. We’re also excited about the opportunity to meaningfully transform the bank’s balance sheet, while benefiting from funding that’s both more efficient and less sensitive to rising interest rates. This acquisition strengthens our funding platform and enhances franchise value.â€
At closing, Flagstar expects to have 151 branches in the Midwest and eight in California. The branches to be acquired will operate as Wells Fargo branches and will immediately be re-branded as Flagstar branches upon the closing of the transaction. The transaction is expected to close in the fourth quarter of 2018.