Source: Wells Fargo
Wells Fargo & Company (NYSE: WFC) announced today it has entered into an agreement to sell 52 retail bank branches to Flagstar Bank, FSB, a subsidiary of Flagstar Bancorp, Inc. (NYSE: FBC).
The sale comprises all Wells Fargo branches in Indiana (33), Michigan (14) and Ohio (1), and a small number of Wisconsin branches (4), and involves approximately 490 team members, all of whom will receive offers of employment from Flagstar.
“We are very pleased to reach this agreement with Flagstar, as they are committed to providing excellent service to our customers and providing a great workplace for our team members,” said Mary Mack, head of Community Banking and Consumer Lending. “As we continue to reduce our branch network, we believe this sale to Flagstar will result in the best outcome for customers, team members and other stakeholders in these markets. We will be working closely with Flagstar over the coming months to ensure a smooth transition and uninterrupted service. We remain committed to these communities, and Wells Fargo will continue to have a presence in the area with other businesses including commercial lending, wealth management, retail brokerage, and home lending.”
Wells Fargo has previously shared its plan to reduce retail bank branches to approximately 5,000 branches by the end of 2020, through consolidations and divestitures. The transaction comprises approximately $2.3 billion in deposits and is expected to close in the fourth quarter 2018, subject to customary regulatory approvals. There is no action required for customers of these branches at this time, and Wells Fargo and Flagstar will communicate in advance of any changes as we work together to care for customers and team members.