Flagstar-New York Bank Close Deal Worth $2.6 Billion

HICKSVILLE, N.Y. (PRNewswire) — New York Community Bancorp announced that its acquisition of Troy, Mich.-based Flagstar Bancorp, Inc. was completed Thursday, creating a regional banking franchise ranking among the top 25 banks in the country based on total assets. 

In accordance with the agreement, Flagstar Bank now operates as Flagstar Bank, N.A., with New York Community Bank having merged into Flagstar Bank, N.A.

On a proforma basis, as of September 30, 2022, the Company would have had $88.4 billion of assets, $66.0 billion of loans, deposits of $58.3 billion, and total stockholders’ equity of $9.3 billion. Flagstar Bank, N.A. 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.

“We are tremendously pleased and very excited to announce the completion of our merger with Flagstar,” president/CEO Thomas 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. 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,” he added. “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.”

In connection with the closing of the acquisition, NYCB’s Board of Directors 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 Corporation (retired)
  • Jennifer R. Whip, Principal – Cambridge One, LLC

“The Company is privileged to add these six directors to its Board,” Cangemi said, “Each of them adds unique skills and business expertise to an already diverse board.

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.