FORT WAYNE, Ind. (WANE) - Wells Fargo has agreed to sell 33 of its Indiana bank branches, including 26 in Fort Wayne to Flagstar Bank in a deal that is expected to close in the fourth quarter of this year.
Both banks made the announcement Tuesday morning. The deal also includes the sale of 14 Wells Fargo branches in Michigan, one in Ohio and four in Wisconsin.
Flagstar currently operates ATMs inside gas stations, pharmacies, grocery stores and other retail establishments in the Fort Wayne area.
Flagstar expects to have 151 branches in the Midwest and eight in California once the deal closes.
"Being able to increase our presence in the Midwest market–a geography we know well and find very attractive–is a terrific opportunity for us. This transaction significantly expands our banking footprint, more than doubling our customer base. We're also excited about the opportunity to meaningfully transform the bank's balance sheet, while benefiting from funding that's both more efficient and less sensitive to rising interest rates. This acquisition strengthens our funding platform and enhances franchise value."
According to a press release from Wells Fargo, the company had previously shared its plan to reduce retail bank branches to approximately 5,000 branches by the end of 2020, through consolidations and divestitures.
Wells Fargo will maintain some commercial lending, wealth management, retail brokerage services.
Flagstar indicated in its press release that it intends to keep all branches and retain all employees at closing. The bank branches will remain operating as Wells Fargo branches until the deal closes. They will then be re-branded as Flagstar branches.