SAN FRANCISCO — Wells Fargo & Company announced on Tuesday that it has entered into an agreement to sell 52 retail bank branches to Flagstar Bank, according to businesswire.com.
Flagstar Bank, a subsidiary of Flagstar Bancorp, Inc., will acquire all Wells Fargo branches in the Upper Peninsula. The acquisition also includes branches in Indiana and Ohio, as well as a four Wisconsin branches.
All 490 team members across these branches will receive employment offers 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, in a statement. “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.
Steven Carlson, the vice president of Wells Fargo Corporate Communications, said in email correspondence with ABC 10 that “We expect to maintain our presence and commitment in these communities.” According to Carlson, certain accounts belonging to customers at the branches being sold will move to Flagstar Bank. Those accounts include:
- Consumer and small business deposit accounts, including debit cards
- Personal loans
- Small business loans
- Direct auto loans
- Business direct – both commercial and industrial.
The following types of customer accounts will remain with Wells Fargo:
- Home loans
- Consumer and small business credit cards
- Indirect auto loans (through dealerships)
- Investment and wealth management
- Business banking
- Wholesale banking
Carlson said the bank will work with customers to ensure a smooth transition.