Wells Fargo to sell 52 bank branches to Flagstar Bancorp

Wells Fargo & Co. on Tuesday announced it has struck a deal to sell 52 retail branches to Flagstar Bank, which is a subsidiary of Flagstar Bancorp The affected branches are in Indiana, Michigan, Ohio, and Wisconsin. Approximately 490 Wells employees at those locations will receive job offers from Flagstar. The sale is part of a previously-announced plan to whittle Wells' branch footprint, the company said in a release. It comprises approximately $2.3 billion in deposits, and should close in the fourth quarter, Wells said. Both banks will communicate with customers who have deposits at those locations. Shares of Wells Fargo have declined nearly 10% in the year to date, compared to a 3% increase in the S&P 500 as the bank works to contain fallout from customer scandals.