June 6 (UPI) — Wells Fargo announced an agreement Tuesday to sell 52 of its retail bank branches in four Midwestern states.
The bank issued a statement announcing the sale of all 33 of its branches in Indiana, all 14 in Michigan, its lone branch in Ohio and four branches in Wisconsin to Flagstar Bank.
The sale affects 490 Wells Fargo employees, all of whom will receive offers of employment from Flagstar, the company said.
“We will be working closely with Flagstar over the coming months to ensure a smooth transition and uninterrupted service,” said Mary Mack, Wells Fargo’s head of community banking and consumer lending.
About $2.3 billion in deposits will leave Wells Fargo in the transaction and the company added no immediate action is required from customers at the affected branches.
Wells Fargo also plans to continue to offer some services in the areas where the branches were sold.
“We remain committed to these communities, and Wells Fargo will continue to have a presence in the area with other businesses including commercial lending, wealth management, retail brokerage, and home lending,” Mack said.
The company previously stated plans to reduce retail bank branches to approximately 5,000 branches by the end of 2020.
“As we continue to reduce our branch network, we believe this sale to Flagstar will result in the best outcome for customers, team members and other stakeholders in these markets,” said Mack.
In February, the Federal Reserve placed sanctions on Wells Fargo restricting its growth in response to widespread consumer abuses and breakdowns in compliance.
