Troy, Mich.-based Flagstar Bank FSB agreed to purchase Wells Fargo & Co.'s 52 retail branches in Indiana, Michigan, Ohio and Wisconsin, at an effective deposit premium of approximately 7% based on balances as of Dec. 31, 2017.
The transaction, which comprises approximately $2.3 billion in deposits and $130 million in loans, is expected to close in the fourth quarter, subject to regulatory approvals.
Flagstar Bancorp Inc.'s management expects the branch deal to be moderately accretive to 2019 earnings per share.
Specifically, Wells Fargo is selling 33 branches in Indiana, 14 in Michigan, four in Wisconsin and one in Ohio. Once the deal closes, Flagstar will have 151 branches in the Midwest region and eight in California.
Flagstar will retain all employees of the Wells Fargo branches being sold.
Law firm Skadden Arps Slate Meagher & Flom LLP provided legal advice to Flagstar.
