TROY, Mich., Dec. 2, 2011 /PRNewswire/ -- Flagstar
Bancorp (NYSE:FBC) (the "Company"), the holding company for
Flagstar Bank, FSB (the "Bank"), today announced that the Bank has
completed the sale of its 22-branch Indiana retail bank franchise to First
Financial Bank, N.A. ("First Financial"), a wholly owned subsidiary
of First Financial Bancorp (Nasdaq:FFBC), pursuant to the
previously announced agreement between the parties.
At the closing, the Bank sold its branches in Indiana and the associated deposits.
First Financial paid the Bank a premium for the consumer and
commercial deposits it assumed plus the net book value of the real
estate and personal assets associated with the branches.
First Financial also assumed the existing leases on 14 of the
branches.
Flagstar Bancorp's chairman and chief executive officer,
Joseph P. Campanelli, said, "We sold
approximately $340 million of
consumer and commercial deposits and approximately $120 million of government and municipal deposits
in the transaction. Based upon the estimated deposit premium
of $22.5 million, we anticipate
recording a gain of approximately $22
million on the transaction."
"The consummation of this transaction allows Flagstar to focus
our resources on the markets where we see the greatest return and
growth potential," Mr. Campanelli said. "We've invested
significant resources in transforming Flagstar into a full-service
commercial bank, and our ultimate goal is to continue to grow our
retail and commercial lines of business to complement our strong
market presence in national mortgage banking."
About Flagstar
Flagstar Bancorp is a full-service financial services company,
offering a range of products and services to consumers, businesses,
and homeowners. With $13.7 billion in
total assets at September 30, 2011,
Flagstar is the largest publicly held savings bank headquartered in
the Midwest. As of September 30,
2011, Flagstar operated 162 branches in Michigan, Indiana, and Georgia. However, Flagstar
sold 22 branches in Indiana on
December 2, 2011 and has entered into
an agreement to sell or lease its 27 branches in Georgia. Flagstar also operated, at
September 30, 2011, 29 home loan
centers in 14 states, and a total of four commercial banking
offices in Massachusetts,
Connecticut, and Rhode Island. Flagstar Bank originates loans
nationwide and is one of the leading originators of residential
mortgage loans. For more information, please visit
flagstar.com.
Forward Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, as amended. Forward-looking statements, by their nature,
involve estimates, projections, goals, forecasts, assumptions,
risks and uncertainties that are difficult to predict and could
cause actual results or outcomes to differ materially from those
expressed in a forward-looking statement. Forward-looking
statements contained in this press release and any information
related to expectations about future events or results are based
upon information available to the Company as of the date hereof.
Forward-looking statements can be identified by such words as
"anticipates," "intends," "plans," "seeks," "believes," "expects",
"estimates," and similar references to future periods. Examples of
forward-looking statements include, but are not limited to,
statements made regarding the Company's current expectations, plans
or forecasts of its core business drivers, credit related costs,
asset quality, capital adequacy and liquidity, the implementation
of the Company's business plan and growth strategies, the impact,
timing and likelihood of consummation of the Company's sale of its
Georgia retail bank franchises,
the result of improvements to the Company's servicing processes,
and other similar matters. There is a risk that, because of
business, economic or market conditions or for any other reasons
within or outside of the Company's discretion, the Company's sale
of its Georgia and Indiana retail bank franchises may not have
the projected impact or the Company's sale of its Georgia retail bank franchise may not be
consummated in a timely manner or at all. For a further discussion
of the factors that may cause actual results to differ materially
from current expectations, please review the Company's filings with
the Securities and Exchange Commission ("SEC"), including but not
limited to, our Forms 10-K and 10-Q. Except to the extent required
under the federal securities laws and the rules and regulations
promulgated by the SEC, the Company undertakes no obligation to
update any such statement to reflect events or circumstances after
the date on which it is made.
SOURCE Flagstar Bancorp