logo
Share SHARE
FONT-SIZE Plus   Neg

New York Community's Unit To Assume Some $2.3 Bln Deposits From Aurora Bank FSB

New York Community Bancorp, Inc. (NYB) said its wholly-owned savings bank subsidiary, New York Community Bank, has signed an agreement to assume about $2.3 billion of FDIC-insured deposits from Aurora Bank FSB.

The deal is expected to be immediately accretive to earnings upon closing, and the company will be paid $24.0 million to assume the deposits at that time.

The majority of the deposits to be assumed are short-term certificates of deposit, or CDs, including approximately $1.5 billion of brokered CDs and approximately $800 million of retail and institutional CDs, after accounting for anticipated maturities. In addition, the Bank will assume approximately $30 million of money market accounts.

New York Community Bancorp expects to close the transaction in the second quarter of this year.

Commenting on the transaction, President and Chief Executive Officer Joseph Ficalora stated, "This was an attractive opportunity to assume low-cost funding and is consistent with our focus on strategic actions that are accretive to the earnings of the Company."

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Automakers on Monday reported strong U.S. vehicle sales for the month of July, driven by continued demand for trucks and sport-utility vehicles amid an improving economy, lower gas prices and easy availability of credit. Detroit's Big Three - General Motors Co., Ford Motor Co. and FCA US, LLC - all reported vehicle sales above analyst expectations. British lender Lloyds Banking Group Plc. Friday reported higher profit in its first half, benefited by increased net interest income and margin as well as lower impairment. Looking ahead, the company lifted its net interest margin forecast. Amgen reported an increase in second-quarter profit, driven by sales of arthritis drug Enbrel and osteoporosis treatments Xgeva and Prolia, and improved margins. Both earnings and sales topped Wall Street estimates.
comments powered by Disqus
Follow RTT