Wells Fargo is retreating from the Midwest.
The bank, scrambling to cut costs and dealing with a wave of scandals, announced plans Tuesday to sell all of its branches in Indiana, Michigan and Ohio. Wells Fargo, the second-largest bank in the country, will no longer have a retail presence in those states.
Flagstar Bancorp (FBC), a savings and loan, is buying the branches — 52 in all, including four of Wells Fargo’s locations in Wisconsin.
All told, about $2.3 billion in deposits will leave Wells Fargo. The company said that all 490 employees will get offers to work at Flagstar.
“We remain committed to these communities,” Mary Mack, Wells Fargo’s head of community banking, said in a statement. Mack said Wells Fargo (WFC) will “continue to have a presence in the area” through commercial lending, wealth management and mortgage lending.
The sale includes 33 branches in Indiana, 14 in Michigan and Wells Fargo’s only branch in Ohio, plus the four in Wisconsin. Wells Fargo will still have 48 branches in Wisconsin.