PASADENA, Calif.--(BUSINESS WIRE)--East West Bancorp, Inc. (Nasdaq: EWBC), parent company of East West Bank, today announced that East West Bank has entered into a purchase and assumption agreement to sell its Desert Community Bank branches and related assets and liabilities to Flagstar Bank, a subsidiary bank of Flagstar Bancorp, Inc.(NYSE: FBC).
Desert Community Bank consists of eight branches located in the High Desert area of California, and has been operating as a separate division of East West Bank for ten years. The purchase and assumption agreement includes all eight branches, approximately $70 million in loans and $600 million in deposits. Following the sale, DCB will retain its name and continue to operate as Desert Community Bank, a division of Flagstar Bank.
Dominic Ng, Chairman and Chief Executive Officer of East West, stated, “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. I am confident that our customers will be well-served by the team at Flagstar.”
The transaction is subject to regulatory approval and satisfaction of customary closing conditions, and is expected to be completed in the first half of 2018. The terms of the transaction were not disclosed.
Sandler O’Neill & Partners, L.P. acted as financial advisor and King, Holmes, Paterno & Soriano, LLP served as legal counsel to East West Bancorp, Inc.
About East West
East West Bancorp, Inc. is a publicly owned company with total assets of $36.3 billion and is traded on the Nasdaq Global Select Market under the symbol “EWBC”. The Company’s wholly-owned subsidiary, East West Bank, is one of the largest independent banks headquartered in California. East West is a premier bank focused exclusively on the United States and Greater China markets and operates over 130 locations worldwide, including in the United States markets of California, Georgia, Massachusetts, Nevada, New York, Texas and Washington. In Greater China, East West’s presence includes full service branches in Hong Kong, Shanghai, Shantou and Shenzhen, and representative offices in Beijing, Chongqing, Guangzhou, Taipei and Xiamen. For more information on East West, visit the Company’s website at www.eastwestbank.com.