New York Community Bancorp (NYCB) acquired Flagstar Bancorp, creating a regional banking franchise ranking among the top 25 banks in the country based on total assets. In accordance with the agreement and plan of merger dated April 24, 2021, as amended on April 26, 2022 and Oct. 27, 2022 by and among the company, Flagstar and 615 Corp., Flagstar merged with and into the company and Flagstar Bank (FSB), FSB now operates as Flagstar Bank, with New York Community Bank having merged into Flagstar Bank.
On a proforma basis, as of Sept. 30, 2022, the company would have had $88.4 billion of assets, $66 billion of loans, deposits of $58.3 billion, and total stockholders’ equity of $9.3 billion. Flagstar Bank operates 395 branches across nine states, and operates nationally through its Flagstar Mortgage division. The combined organization 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.
Thomas R. Cangemi, president and CEO of NYCB, said, “We are tremendously pleased and very excited to announce the completion of our merger with Flagstar. 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. In Flagstar we found a like-minded partner that shares the same values and commitment to our employees, customers and communities. Our employees will benefit from greater opportunities and resources that a bank with almost $90 billion in assets possesses, 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. 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.”
Both New York Community and Flagstar 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, access to account information, use of debit cards, access to ATMs or access to account information, either on-line or through mobile-banking applications. 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.
