Flagstar Bancorp’s wholly-owned subsidiary Flagstar Bank has completed its previously announced acquisition of 52 Wells Fargo branches in four US Midwest states.
The acquisition brings nearly $2bn in deposits as well as certain associated assets into Flagstar portfolio.
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Flagstar Bancorp president and CEO Alessandro DiNello said: “We are excited to welcome the customers and employees of the 52 Wells Fargo Bank branches who joined the Flagstar family over the weekend.
“We are eager to bring Flagstar’s brand of custom-crafted banking solutions to our new customers—all delivered by our new team of talented bankers. They share our tradition of superior customer service and commitment to the community.”
Wells Fargo branches acquisition
In June, Flagstar entered into an agreement to acquire the 52 retail bank branches from Wells Fargo.
The purchase included 33 locations in Indiana, 14 offices in Michigan, four branches in Wisconsin and one in Ohio.
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By GlobalDataAll staff working in these branches also migrated to Flagstar, as a part of the transaction.
The acquisition strengthens Flagstar’s banking footprint in the Midwest region and adds around 200,000 new customers to its client-base.
At the time of announcing the transaction, Flagstar stated that it will have 151 branches in the Midwest and eight in California region following the deal.
The transaction is part of Wells Fargo’s strategy to trim its retail bank branch network to nearly 5,000 offices by the end of 2020.
It is also part of the Wells Fargo plot to lay-off around 1,000 of its employees in the US as a part of its previously announced plan to reduce its workforce by 10% by 2020.
The retrenchment will affect the bank’s Consumer Lending and Payments, Virtual Solutions and Innovations segments.
Most of the affected employees have received 60-day notices, while some were given pre-notices, which confirm that they will receive the termination notice next year.
In the latest layoff round, about 900 employees will be fired from the bank’s home lending unit. The bank’s Des Moines in Iowa will face 400 job cuts followed by Fort Mill in South Carolina with 111 reductions.
The remaining layoffs from the home lending unit are spread across the US.
Wells Fargo aims to save $4bn by 2020 through these job cuts. It is also planning to reduce its branch network and divest non-core operations to reduce costs.
Furthermore, Wells Fargo is having a bad year with the regulator as it was slapped with a fine.
