Flagstar Bancorp Inc. (Headquarters located in Troy, Michigan) told financial analysts Wednesday that it plans to shut up to nine of its bank branches by year's end, with most of the closings likely to occur in Michigan. Layoffs will be immanent and several dozen people will lose their jobs.
Michigan's 7th largest bank in terms of cash deposits currently operates 120 of its 175 branches in the state Michigan. The branches slated to close are mostly located inside retail stores, mainly Wal-Marts.
"It's part of our expense-cutting initiative," said Bradley Howes, Flagstar's communications liason.
The planned consolidation of Flagstar's banking branches comes on top of two branch closings in the second quarter, one located in Indiana and the other inside a Wal-Mart in Canton.