New York Community Bancorp (NYCB) and Flagstar Bancorp announced that NYCB has received regulatory approval from the Federal Reserve Board (FRB) to complete its previously announced acquisition of Flagstar. On Oct. 28, 2022, NYCB and Flagstar announced the receipt of regulatory approval from the Office of the Comptroller of the Currency to convert Flagstar Bank, FSB to a national bank to be known as Flagstar Bank and to merge New York Community Bank into Flagstar Bank. With the FRB approval, no further regulatory approvals are required to complete the acquisition.
The consummation of the acquisition of Flagstar by NYCB is expected to take place on Dec. 1, 2022, subject to the satisfaction of the remaining customary closing conditions set forth in the merger agreement between the two companies. The company will continue to be known as New York Community Bancorp and trade under the “NYCB” ticker symbol.
The acquisition would create one of the largest regional banks in the country, operating 395 branches across a nine-state franchise, including strong footholds in the Northeast and the Midwest and exposure to high growth markets in the Southwest and West Coast. Through the Flagstar Mortgage division, the company will operate nationally through 81 retail home lending offices in 26 states and a wholesale network of approximately 3,000 third-party mortgage originators.
“We are extremely gratified to receive all necessary regulatory approvals required to close on our acquisition of Flagstar,” Thomas R. Cangemi, chairman, president and CEO of NYCB, said. “The acquisition combines two like-minded organizations, creating a nearly $90 billion regional bank with better scale and capabilities, including an expanded branch network, a full-suite of financial products and services, a diversified funding base and loan portfolio, and importantly, the combined talent and leadership of our two companies. We are excited about the significant opportunities that the merger provides to both sides and the positive impact both banks will continue to have on our employees, communities, and shareholders and to our customers throughout each of our markets.”
“The regulatory approval we received positions us to create a premier bank with a robust commercial lending operation, an expansive and powerful retail banking network, and industry-leading mortgage origination and servicing businesses,” Alessandro DiNello, president and CEO of Flagstar, said. “Our larger balance sheet will help us invest more in technologies that enhance the customer experience and create a more personalized approach to banking. Our communities will benefit from our combined commitment; our employees from the greater resources and opportunities available at a larger bank; and our shareholders from the diverse earnings power of the combined company. We could not have teamed up with a more complementary partner and I look forward to the powerful results we will achieve when our Flagstar team is paired with our outstanding partners at NYCB.”
