All 8 Desert Community Bank Branches Go To Michigan Bank

Troy, Michigan-based Flagstar Bank, which credits itself with being “the sixth largest bank mortgage originator in the nation,” has entered into a definitive agreement to acquire the eight-branch network of Desert Community Bank from East West Bank.
Flagstar Bank, which was founded in 1987 and went public in 1997 and has been listed on the New York Stock Exchange since 2001 trading under the ticker FBC, is a community bank with $16.9 billion in assets and 99 banking branches in Michigan. It operates a significant wholesale mortgage business nationally, with 95 retail mortgage offices across the country, 41 of which are in California. Most of Flagstar’s California offices currently operate under the Opes Advisors brand, a division of Flagstar.
The acquisition agreement is pending regulatory approval, and the deal is not expected to close until the first half of 2018.
According to a corporate statement from Flagstar, “Flagstar is eager to be part of the Desert Community Bank community and intends to expand the support and commitments to the High Desert areas that Desert Community Bank serves. Flagstar’s interest in Desert Community Bank is in part based on the community ties that have been built. Flagstar already has a meaningful presence in California. It originates more than 30 percent of its mortgage business in the state and has 41 retail mortgage offices in California. Desert Community Bank provides a great opportunity for Flagstar to continue to grow in California, providing a high quality deposit base to complement Flagstar’s lending activities. With strong brand recognition, a loyal customer base, and dedication to the community, Desert Community Bank is aligned with Flagstar’s corporate culture. In addition to maintaining the existing quality services, Flagstar expects to invest in upgrades of Desert Community Bank’s branches, ATMs and website to better deliver products and services to our customers.”
Desert Community Bank was founded in March 1980. In 2007, it was acquired by East West Bank for $143 million, with 45 percent in cash and the rest in stock. Desert Community Bank branches maintained their original branding and did not change their names to East West Bank. Flagstar indicated all eight branches “will continue to operate as Desert Community Bank, or DCB, retaining the DCB name and brand. However, Desert Community Bank will become a division of Flagstar Bank.
Flagstar offered an assurance that “Until the acquisition closes, customers will not experience any changes. During the conversion process of moving Desert Community accounts onto Flagstar’s operating systems, Flagstar is committed to making as few changes and creating as little disruption as possible for customers. Customers will be notified well in advance of any changes.”

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