New York Community Bancorp, Inc. (NYCB) and Flagstar Bancorp, Inc. (FBC), jointly announced Monday that they have entered into a definitive merger agreement under which the two companies will combine in an all stock merger valued at about $2.6 billion.
Under terms of the agreement, which was unanimously approved by the Boards of Directors of both companies, Flagstar shareholders will receive 4.0151 shares of New York Community common stock for each Flagstar share they own.
Following completion of the transaction, the New York Community shareholders will hold approximately 68 percent and Flagstar shareholders are expected to hold approximately 32 percent of the combined company. The implied total transaction value based on closing prices as of April 23, 2021 is approximately $2.6 billion.
The combined company will have over $87 billion in assets and operate nearly 400 traditional branches in nine states and 87 loan production offices across a 28 state footprint. It will have its headquarters on Long Island, New York with regional headquarters in Troy, Michigan, including Flagstar’s mortgage operations.
The combined company will maintain the Flagstar Bank brand in the Midwest. Flagstar’s mortgage division will also maintain the Flagstar brand. Other states will retain their current branding.
Thomas Cangemi will be President and Chief Executive Officer of the combined company and Alessandro DiNello, Flagstar’s current President and Chief Executive Officer, will become Non-Executive Chairman with John Pinto serving as Senior Executive Vice President and Chief Financial Officer of the combined company.
The Board of Directors will be comprised of 12 directors – eight from New York Community and four from Flagstar.
The transaction is expected to close by the end of 2021, subject to the satisfaction of customary closing conditions, including the receipt of the requisite regulatory approvals and the requisite approval by the shareholders of each company.
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