New York Community Bank president and chief executive officer Joseph Ficalora said the acquisition was an attractive opportunity to assume low-cost funding and was consistent with the firm’s focus on strategic actions that were accretive to the earnings of the Company.
According to the firms, the deal is expected to be immediately accretive to earnings upon closing, and the Company will be paid $24m to assume the deposits at that time.
Short-term certificates of deposit (CDs) will be the major portion of the deposits to be assumed, such as about $1.5bn of brokered CDs and almost $800m of retail and institutional CDs, after accounting for anticipated maturities, said the bank.
Additionally, the Bank will assume about $30m of money market accounts, while the deal is expected to close in the second quarter of this year, after obtaining the necessary regulatory approval.
Sandler O’Neill + Partners provided financial advice to the Company, while Keefe, Bruyette & Woods, served as financial advisor to Aurora Bank and Deutsche Bank Securities assisted as co-advisor.
New York Community Bancorp owned assets of $42bn as on 31 December 2011, and provides family mortgage loans in New York.
