Flagstar Bancorp to be acquired by New York bank in $2.6 billion deal
All-stock deal set to close before end of year
Flagstar among largest banks headquartered in Michigan
Troy-based Flagstar Bancorp. (NYSE:FBC) is set to be acquired by Westbury, N.Y.-based New York Community Bancorp Inc. (NYSE: NYCB) in an all-stock, $2.6 billion transaction, the banks said Monday.
The acquisition has already been unanimously agreed to by the boards of both banks, and pending further regulatory approvals and other customary closing conditions, is expected to close by the end of the year.
The combined lender will be headquartered on Long Island in the New York City metropolitan area, but maintain a regional headquarters in Troy, and the Flagstar brand will maintain its branding in the Midwest, according to the release. The new bank will have over $87 billion in assets and operate about 400 physical branches spread over nine states, as well as 87 loan production offices in 28 states.
DBusiness Magazine
Flagstar Bank in Troy Merges with New York Community Bancorp in $2.6B Deal
Flagstar Bancorp Inc. in Troy and New York Community Bancorp Inc. jointly announced today they have entered into a definitive merger agreement under which the two companies will combine in an all-stock merger.
Flagstar Bancorp Inc. in Troy has entered into a definitive merger agreement under which it will merge with New York Community Bancorp Inc. Pictured is New York Community Bancorp Inc.’s online banking app. // Photo courtesy of New York Community Bancorp Inc.
Flagstar Bancorp Inc. in Troy and New York Community Bancorp Inc. jointly announced today they have entered into a definitive merger agreement under which the two companies will combine in an all-stock merger.
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NEW YORK, April 26, 2021 /PRNewswire/ WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the board of directors of Flagstar Bancorp, Inc. ( Flagstar or the Company ) (NYSE: FBC) in connection with the proposed acquisition of the Company by New York Community Bancorp, Inc ( New York Community ) (NYSE: NYCB). Under the terms of the merger agreement, Flagstar shareholders will receive 4.0151 shares of New York Community common stock for each Flagstar share that they own, representing implied per share merger consideration of $48.14 based upon New York Community s April 23, 2021 closing price of $11.99. Upon completion of the transaction, New York Community shareholders will own approximately 68% and Flagstar shareholders will own approximately 32% of the combined entity. The implied total transaction value is approximately $2.6 billion.
Troy-based Flagstar to be bought by N.Y. Community Bancorp in $2.54B deal
Steve Dickson
New York Community Bancorp agreed to buy Michigan’s Flagstar Bancorp Inc. in an all-stock deal with an equity value of about $2.54 billion.
Flagstar shareholders will receive 4.0151 shares of New York Community common stock for each Flagstar share they own, the two companies said Monday in a statement.
U.S. regional banks have been merging to grapple with low interest rates, weak loan demand and the need to boost technology spending. Pressure is coming from giants such as JPMorgan Chase & Co., which is moving into new states and spending billions annually on digital offerings. Last week, Webster Financial Corp. agreed to purchase Pearl River, New York-based Sterling Bancorp in an all-stock transaction that valued the target at $5.14 billion.