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Flagstar to Sell Remaining Northeast-Based Commercial Loan Portfolio for $148.9M

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Danger Zone: Flagstar Bancorp

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. 

Posted-In: News Asset Sales

 

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