Flagstar to Sell Remaining Northeast-Based Commercial Loan Portfolio for $148.9M
Flagstar Bancorp, Inc. (NYSE: FBC), ("Flagstar"), the holding company for Flagstar Bank, FSB (the "Bank"), today announced that, effective February 5, 2013, the Bank has entered into a definitive Asset and Portfolio Purchase and Sale Agreement (the "Agreement") under which Customers Bank ("Customers") will acquire substantially all of Flagstar's remaining Northeast-based commercial loan portfolio.
Under the terms of the Agreement, Customers will acquire $187.6 million in commercial loan commitments, of which $150.9 million is currently outstanding. The loans sold consist primarily of commercial and industrial loans. Flagstar expects that the total purchase price will be approximately $148.9 million, which represents 98.7% of the outstanding balance.
Flagstar expects that a vast majority of these assets will be transferred during the first quarter 2013. Upon completion of these transfers, and completion of the transfers associated with the Northeast-based commercial loan sale previously announced on January 2, 2013, Flagstar expects its remaining Northeast-based commercial loan portfolio balance to be approximately $19.3 million. As part of the Agreement, and subject to receipt of customary third party consents, Customers will also assume the leases for two of Flagstar's commercial banking offices in the Northeast.
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