Wells Fargo agreed to sell 52 retail bank branches in Indiana, Michigan, Ohio and Wisconsin to Flagstar Bank. The sale is part of Wells Fargo’s plan to reduce its retail locations to approximately 5,000 branches by the end of 2020, through consolidations and divestitures.
The sale includes $2.3 billion in deposits and $130 million in loans, while all 490 branch team members will receive offers of employment from Flagstar.
Flagstar will pay an effective deposit premium of approximately 7% based on balances as of December 31, 2017. Flagstar management expects the transaction will be moderately accretive to 2019 earnings per share.