Flagstar Bank has reached an agreement to acquire eight Desert Community Bank (DCB) branches in San Bernardino County, California from East West Bank along with certain related assets.
The acquired branches have about $600m in deposits and $70m in loans.
Flagstar Bank noted that the deal will provide additional funding and liquidity to grow balance sheet and to fund loan growth.
The proposed transaction, which represents Flagstar’s third acquisition this year, will enable the acquirer to diversify and expand banking footprint in California.
Subject to regulatory approval and customary closing conditions, the transaction is scheduled to be completed during the first half of 2018.
Flagstar Bancorp president and CEO Alessandro DiNello said: “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.”