The deal creates a regional banking franchise ranking among the top 25 banks in the country based on total assets.
Under terms of the deal, Flagstar “merged with and into the company and Flagstar Bank now operates as Flagstar Bank N.A., with New York Community Bank having merged into Flagstar Bank N.A.,” NYCB said.
The combined company will continue to be known as New York Community Bancorp Inc. and trade under the "NYCB" ticker symbol.
Both Hicksville, N.Y.-based New York Community Bank and Troy, Mich.-based Flagstar Bank will continue to operate their retail banking networks separately under their respective brands. Customers at both banks will not experience any immediate changes to their accounts, loan payments, use of debit cards, access to ATMs, or access to account information, either online or through mobile banking applications, the banks said.
“As we move closer to becoming a top-tier regional bank, we plan to announce a single brand for the combined company along with a multi-channel marketing campaign,” said NYCB President and CEO Thomas R. Cangemi.
As of Sept. 30, NYCB had $88.4 billion of assets, $66 billion in loans, deposits of $58.3 billion, and total stockholders' equity of $9.3 billion, the bank said.
Flagstar Bank N.A. operates 395 branches across nine states, and operates nationally through its Flagstar Mortgage division. Flagstar Mortgage operates nationally through 81 retail home-lending offices and a wholesale network of approximately 3,000 third-party mortgage originators. According to Mobility Market Intelligence, Flagstar Mortgage has originated $10.9 billion in mortgage loans as of Sept. 1.
The combined organization, NYCB said, will have a diverse revenue and earnings stream; an expansive retail banking network; industry-leading positions in several national lines of business, including multi-family lending, residential mortgage origination and servicing, and warehouse lending; along with a robust commercial banking platform.
"We are tremendously pleased and very excited to announce the completion of our merger with Flagstar,” Cangemi said. “The merger creates a company with significant scale and capabilities with a more diversified loan portfolio, an improved funding mix, and a much better interest-rate risk profile.”
Flagstar is “a like-minded partner that shares the same values and commitment to our employees, customers, and communities,” he said.
NYCB’s employees will benefit from “greater opportunities and resources that a bank with almost $90 billion in assets possesses,” Cangemi said, while customers will benefit “by having access to a wider array of products and services driven by enhanced technology, and our communities will benefit, including from our $28 billion pledge agreement.”
He added that, “More importantly, the entire organization benefits from having a best-in-class executive leadership team culled from both companies. We couldn't have picked a better partner as we continue our transition to a full-service commercial bank. I am pleased to welcome Flagstar's employees and customers to the New York Community family."
Completion of the merger comes after the banks delayed the deal and amended the merger agreement a couple of times this year. The banks received regulatory approval to merge in October from the Office of the Comptroller of the Currency, and in early November from the Federal Reserve Board.
Along with announcing the final acquisition, NYCB said its board appointed six new directors, five of whom are former directors of Flagstar:
- Alessandro (Sandro) DiNello, non-executive chairman of NYCB's board and former president and CEO of Flagstar Bancorp Inc.
- James Carpenter, chief lending officer, New York Community Bancorp Inc. (retired).
- Toan Huynh, venture capitalist.
- Peter Schoels, managing partner, MP Global Advisors.
- David L. Treadwell, president and CEO, EP Management Corp. (retired).
- Jennifer R. Whip, principal, Cambridge One LLC.
Dominick Ciampa and James O'Donovan have retired from the boards of directors of NYCB and New York Community Bank, the bank said.
In addition, Robert Wann has retired from his chief operating officer position after a four-decade career with NYCB, but he will remain a director. With these changes, the board of directors will include 14 members.
NYCB also formally named its new executive leadership team, which includes:
- John Adams, senior executive vice president (EVP) and director of Indirect Multi-Family Lending.
- Reggie Davis, senior EVP and president of banking.
- John Pinto, senior EVP and chief financial officer.
- R. Patrick Quinn, senior EVP, general counsel, and corporate secretary.
- Lee Smith, senior EVP and president of mortgage.
- Julie Signorille-Browne, EVP and director of operations