Michigan-based Flagstar Bancorp Inc. (NYSE: FBC) has agreed to acquire 33 Wells Fargo Bank branches in Indiana. The deal also involves 19 banking locations in Michigan, Wisconsin and Ohio. The transaction is expected to close in the fourth quarter.
The vast majority of the Indiana branches are in Fort Wayne, where Flagstar says Wells Fargo holds the number one share of the market. Flagstar currently has 99 branches in Michigan and eight in California.
Financial details of the agreement were not immediately available. Flagstar says the 52 branches will remain under the Wells Fargo name until the deal is complete, then will immediately switch to the Flagstar brand. The bank plans to retain all branches and employees.
Flagstar Chief Executive Officer Alessandro DiNello says "being able to increase our presence in the Midwest market – a geography we know well and find very attractive – is a terrific opportunity for us. This 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."
The deal still needs regulatory approval.