Flagstar Bank has completed its acquisition of eight Desert Community Bank branches in San Bernardino County, Calif., from East West Bank.
With the close of the transaction, the Flagstar Bancorp wholly owned subsidiary acquired approximately $600 million in deposits. When the deal was announced, Flagstar Bank said it also involved $70 million in loans and related assets. Terms of the transaction were not disclosed.
The announcement follows the acquisition by Flagstar Bank of $1.7 billion in mortgage warehouse loan commitments from Santander Bank.
Flagstar Bancorp President and CEO Alessandro DiNello said Desert Community Bank customers and employees will move to Flagstar following closing.
"Customers can expect the same relationship banking they are accustomed to, delivered by the talented team of Desert Community bankers they know so well,” DiNello said. “In fact, we plan to bring enhancements to our customers' banking experience with more products and services.”
When the acquisition was announced in September, DiNello said the deal provided Flagstar with low-cost, stable funding to continue growing its 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,” he said.