East West to sell eight branches, millions in deposits in Calif. to Flagstar
East West Bancorp in Pasadena, Calif., has agreed to sell eight branches in Southern California to Flagstar Bancorp in Troy, Mich.
The $36 billion-asset East West said in a press release that the sale will include $70 million in loans and $600 million in deposits. The deal includes branches in communities such as Barstow, Phelan and Victorville.
East West did not disclose the price of the transaction, which is expected to close in the first half of next year.
Desert Community Bank sold itself to East West in 2007. The bank, which has operated as an East West division since then, would retain its brand as part of the $17 billion-asset Flagstar.
“East West is proud to have served the communities in the High Desert area for a decade,” Dominic Ng, the company’s chairman and CEO, said in the release.
“Although we are exiting branch banking in this region of California, it was important for us to find a buyer that was committed to retaining the Desert Community Bank name and banking team, and shared our values in providing an outstanding customer experience,” Ng added.
Sandler O’Neill and King, Holmes, Paterno & Soriano advised East West. Morrison & Foerster advised Flagstar.