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Flagstar Bank to Acquire Desert Community Bank Branches from East West Bank

Flagstar Bank to Acquire Desert Community Bank Branches from East West Bank

Acquisition provides additional funding and liquidity to grow balance sheet

PR Newswire

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

View original content:http://www.prnewswire.com/news-releases/flagstar-bank-to-acquire-desert-community-bank-branches-from-east-west-bank-300554848.html

SOURCE Flagstar Bancorp, Inc.

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