New York Community Bancorp, Inc. (NYSE: NYCB) (the “Company”), the parent company of Flagstar Bank, N.A. (the “Bank”) announced that it has consummated the sale of approximately $5.9 billion in mortgage warehouse loans to JPMorgan Chase Bank, N.A. (“JPMC”), at par. The Company expects to close on an additional $200 million of mortgage warehouse loans in the near future, once necessary customer approvals are received. Upon closing, the Company expects that the transaction will add approximately 70 basis points to its CET1 ratio.
Commenting on the transaction, Chairman, President, and Chief Executive Officer Joseph M. Otting said, “We are pleased to have successfully executed on the sale of the mortgage warehouse loans. The transaction adds a significant amount of liquidity, is accretive to capital, and lowers our loan-to-deposit ratio. In addition, this transaction simplifies our business model as we transition to a leading, diversified regional bank.”
