This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Flagstar Announces Sale Of Remaining Northeast-Based Commercial Loan Portfolio

TROY, Mich., Feb. 6, 2013 /PRNewswire/ -- 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. 

"This agreement represents another milestone as we enhance our focus on our community banking operation in Michigan and our national mortgage business," said Michael Tierney, Flagstar's Chief Executive Officer.  "Going forward, our commercial banking efforts will primarily relate to small business and middle market companies in Michigan.  We thank our commercial banking team in the Northeast for their efforts in building a strong portfolio of loans."

Sandler O'Neill Mortgage Finance L.P., an affiliate of Sandler O'Neill + Partners, L.P., is acting as exclusive financial advisor and agent to Flagstar in connection with the asset sale. Bracewell & Giuliani and Nutter, McClennen & Fish are serving as legal advisors to Flagstar.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs