East West Bancorp, Inc. EWBC announced that its subsidiary, East West Bank, has agreed to sell its eight Desert Community Bank branches and related assets and liabilities to the subsidiary of Flagstar Bancorp, Inc. FBC . The deal, which is expected to close by the first half of 2018, is subject to regulatory approval and customary closing conditions.
Situated in the High Desert area of California, Desert Community Bank operates as a separate division of East West Bank. Along with all the branches of Desert Community Bank, nearly $70 million in loans and $600 million in deposits will also be transferred to Flagstar Bank.
However, the terms of the transaction have not been disclosed. Nevertheless, the deal is expected to help Flagstar Bank move forward with its goal of acquiring deposit franchises to fund loan growth.
Flagstar Bancorp's president and CEO, Alessandro DiNello, said, "I would like to welcome the Desert Community team to the Flagstar family. We've been looking to acquire a high-quality deposit franchise, but they've been difficult to find. The Desert Community branches fit the bill."
Chairman and CEO of East West Bank, Dominic Ng, said, "East West is proud to have served the communities in the High Desert area for a decade. 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. With our choice of Flagstar, we believe we found a dedicated partner to support Desert Community Bank's integral role in the High Desert communities."
Shares of East West Bancorp have gained 21.6% in a year's time, outperforming the 11% growth of the industry
it belongs to.
Currently, East West Bancorp carries a Zacks Rank #3 (Hold).
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report East West Bancorp, Inc. (EWBC): Free Stock Analysis Report T. Rowe Price Group, Inc. (TROW): Free Stock Analysis Report Invesco PLC (IVZ): Free Stock Analysis Report Flagstar Bancorp, Inc. (FBC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research