Savings bank company New York Community Bancorp (NYCB) said that its subsidiary Flagstar Bank has acquired the assets of American full-service commercial bank Signature Bank with an estimated total fair value of $37.8bn.
The transaction mainly includes $24.9bn in cash and cash equivalents along with $11.7bn in loans and leases, net of the initial allowance for credit losses (ACL) for purchased credit deteriorated (PCD) loans.
Flagstar Bank also assumes liabilities estimated at $35.7bn, primarily comprising $33.5bn in customer deposits.
New York Community Bancorp said that the deposits were acquired without a premium and the assets were bought at a discount of around $2.7bn pursuant to the terms of the purchase agreement.
The savings bank company also stated the core deposit intangible (CDI) and other intangibles recognised were $464m.
In March 2023, Flagstar Bank acquired certain assets and assumed certain liabilities of Signature Bank from the Federal Deposit Insurance Corporation (FDIC).
The subsidiary bank was said to acquire only some financially and strategically complementary parts of Signature Bank to enhance the former’s future growth.
Based in Hicksville, New York, New York Community Bancorp has $112.9bn in assets, $83.3bn in loans, $74.9bn in deposits, and total stockholders’ equity of $8.4bn.
The American bank is engaged in several national businesses, including multi-family lending, mortgage origination and servicing as well as warehouse lending.
New York Community Bancorp said that it is the industry’s fifth largest sub-servicer of mortgage loans across the country. It offers services for 1.4 million accounts with $367bn in unpaid principal balances.
Last month, NYCB agreed to sell mortgage warehouse loans worth around $5bn to JPMorgan Chase Bank (JPMC). NYCB intended to reinvest the proceeds from the sale into cash and securities to bolster the company’s liquidity profile.
