Flagstar Completes the Sale of Its Indiana Retail Bank Franchise
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Flagstar Bancorp (NYSE:FBC)
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Today : Friday 2 December 2011
Flagstar Completes the Sale of Its Indiana Retail Bank Franchise
PR Newswire
TROY, Mich., Dec. 2, 2011
TROY, Mich., Dec. 2, 2011 /PRNewswire/ -- Flagstar Bancorp (NYSE:FBC) (the "Company"), the holding company for Flagstar Bank, FSB (the "Bank"), today announced that the Bank has completed the sale of its 22-branch Indiana retail bank franchise to First Financial Bank, N.A. ("First Financial"), a wholly owned subsidiary of First Financial Bancorp (Nasdaq:FFBC), pursuant to the previously announced agreement between the parties.
At the closing, the Bank sold its branches in Indiana and the associated deposits. First Financial paid the Bank a premium for the consumer and commercial deposits it assumed plus the net book value of the real estate and personal assets associated with the branches. First Financial also assumed the existing leases on 14 of the branches.
Flagstar Bancorp's chairman and chief executive officer, Joseph P. Campanelli, said, "We sold approximately $340 million of consumer and commercial deposits and approximately $120 million of government and municipal deposits in the transaction. Based upon the estimated deposit premium of $22.5 million, we anticipate recording a gain of approximately $22 million on the transaction."
"The consummation of this transaction allows Flagstar to focus our resources on the markets where we see the greatest return and growth potential," Mr. Campanelli said. "We've invested significant resources in transforming Flagstar into a full-service commercial bank, and our ultimate goal is to continue to grow our retail and commercial lines of business to complement our strong market presence in national mortgage banking."
