Flagstar Sells Northeast-Based Commercial Loans to CIT for ~$779M

Flagstar Bancorp, Inc. FBC, (the "Company"), the holding company for Flagstar Bank, FSB (the "Bank"), today announced that, effective December 31, 2012, the Bank entered into a definitive Transaction Purchase and Sale Agreement (the "Agreement") under which a wholly-owned subsidiary of CIT Bank, the U.S. commercial bank subsidiary of  CIT Group Inc. CIT ("CIT"), will acquire a substantial portion of Flagstar's Northeast-based commercial loan portfolio.   Under the terms of the Agreement, CIT will acquire $1.264 billion in commercial loan commitments, $785 million of which is currently outstanding.  The loans sold consist primarily of asset-based loans, equipment leases and commercial real estate loans.  Flagstar expects that the total purchase price will be approximately $779 million and that a vast majority of the assets will be sold during the first quarter of 2013.  The sale is expected to be capital accretive to the Bank.   
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsM&A
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!