Flagstar Bancorp (FBC) in Troy, Mich., is continuing to take steps to reduce risk.
The company said on Wednesday that it sold $1.2 billion in commercial loan commitments in the Northeast to a unit of CIT Group in a deal that closed Dec. 31. CIT Bank paid roughly $779 million for the portfolio, which included $785 million of outstanding loans and largely consisted of asset-based loans, equipment leases and commercial real estate loans, Flagstar said in a press release.
"This transaction is another step in renewing Flagstar's focus on our community banking operation in Michigan and our national mortgage business," Michael Tierney, Flagstar's chief executive, said in the release.
Tierney, who
Flagstar
Sandler O'Neill served as Flagstar's financial advisor. Law firms Bracewell & Giuliani and Nutter, McClennen & Fish provided legal advice.
CIT Bank, which is based in Salt Lake City, has rougly $11.6 billion in assets. CIT Group, led by John Thain, has recently been