Flagstar Bank FSB has completed its purchase of Santander Bank NA's mortgage warehouse loan book, bringing in approximately $1.7 billion in loan commitments to become the fourth-largest warehouse lender in the U.S., according to the press release.
The Troy, Mich.-based bank said the transaction involves commitments four times larger than its current portfolio, with "slightly narrower" pricing but about 50% longer days-on-line. The acquisition will lower parent company Flagstar Bancorp Inc.'s Tier 1 leverage ratio by approximately 40 basis points but be "moderately accretive" to its earnings in 2018.
The terms of the deal were not disclosed.
Flagstar Bank had $16.86 billion in assets at the end of 2017. Santander Bank, the Boston-based subsidiary of Spain's Banco Santander SA, had $74.45 billion.
