Wells Fargo & Co. will sell all of its bank branches in Indiana, Michigan and Ohio and a few in Wisconsin — a total of 52 altogether — to Michigan-based Flagstar Bank, a subsidiary of Flagstar Bancorp Inc.

“We are very pleased to reach this agreement with Flagstar, as they are committed to providing excellent service to our customers and providing a great workplace for our team members,” said Mary Mack, Wells Fargo’s head of community banking and consumer lending. “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. We will be working closely with Flagstar over the coming months to ensure a smooth transition and uninterrupted service. 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.”

The sale includes 33 branches in Indiana, 14 in Michigan, one in Ohio and four in Wisconsin that employ a total of 490 workers. All of those workers will receive offers of employment from Flagstar, the June 5 announcement of the deal pledged. The transaction comprises about $2.3 billion in deposits and is expected to close in the fourth quarter, subject to customary regulatory approvals.

Wells Fargo had said it planned to reduce its count of retail bank branches to about 5,000 by the end of 2020 through consolidations and divestitures. There is no action required for customers of these branches at this time, and Wells Fargo and Flagstar will communicate in advance any changes that come in the future.

Founded in 1852 and headquartered in San Francisco, Wells Fargo has about $1.9 trillion in assets.
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