TROY, Mich., Nov. 13, 2017 /PRNewswire/ --
Strategic Benefits:
- Fits strategic goal of acquiring deposit franchises to fund
loan growth.
- Represents Flagstar's third acquisition this year; first
deposit franchise.
- Diversifies and expands banking footprint in California – the Company's largest mortgage
origination state and a market where it already serves commercial
customers.
Flagstar Bancorp, Inc. ("Company," NYSE: FBC) today announced
that Flagstar Bank, FSB ("Flagstar") 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. Terms of the transaction were not
disclosed.
"I would like to welcome the Desert Community team to the
Flagstar family," said Alessandro
DiNello, president and chief executive officer of Flagstar
Bancorp, Inc. "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.
"We look forward to expanding our franchise in California and serving the needs of the local
community."
DCB, headquartered in Victorville,
Calif., holds the #2 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 7 percent on an
annual basis since 2012.
The transaction is subject to regulatory approval and customary
closing conditions, and is expected to close in the first half of
2018. Flagstar was advised by the law firm of Morrison &
Foerster LLP.
About Flagstar
Flagstar Bancorp, Inc. (NYSE: FBC) is a $16.9 billion savings and loan holding company
headquartered in Troy, Mich.
Flagstar Bank, FSB, provides commercial, small business, and
consumer banking services through 99 branches in the state. It also
provides home loans through a wholesale network of brokers and
correspondents in all 50 states, as well as 95 retail locations in
27 states, representing the combined retail branches of Flagstar
and Opes Advisors mortgage division. Flagstar is a leading national
originator and servicer of mortgage loans, handling payments and
record keeping for $91 billion of
home loans representing 415,000 borrowers. For more information,
please visit flagstar.com.
Forward-Looking Statements
This communication contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements are based on the current beliefs and
expectations of Flagstar Bancorp, Inc.'s management and are subject
to significant risks and uncertainties. Actual results may differ
from those set forth in the forward-looking statements. Factors
that could cause the Company's actual results to differ materially
from those described in the forward-looking statements can be found
in periodic Flagstar reports filed with the U.S. Securities and
Exchange Commission, which are available on the Company's website
(flagstar.com) and on the Securities and Exchange Commission's
website (sec.gov). Other than as required under United States securities laws, the Company
does not undertake to update the forward-looking statements to
reflect the impact of circumstances or events that may arise after
the date of the forward-looking statements.
For further information
ANALYSTS: David Urban, Senior
Vice President & Director, Investor Relations, (248)
312-5970
MEDIA: Susan Bergesen,
Corporate Communications, (248) 312-6237
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SOURCE Flagstar Bancorp, Inc.