The Bank Slate


New York Community, Flagstar extend merger agreement

New York Community Bancorp in Hicksville and Flagstar, Mich., have extended their merger agreement to Oct. 31. 

The $47 billion-asset New York Community and the $23 billion-asset Flagstar have been waiting on regulatory approval for their $2.6 billion merger. 

The deal was announced in April 2021 and had an original deadline of April 24, 2022.

The companies also amended their agreement to pursue a national bank charter and supervision by the Office of the Comptroller of the Currency. They said in a press release Tuesday that such a charter is “appropriate … especially taking into account Flagstar’s national mortgage banking business.” 

With the changes, the merger will need approval from the OCC and the Federal Reserve. Previously, the deal required approved from the Fed, Federal Deposit Insurance Corp. and the New York State Department of Financial Services.

New York Community warned in October that it was unlikely to complete the acquisition in 2021 as originally planned. 

“Obviously, this is in the hands of our regulators,” Thomas Cangemi, New York Community’s chairman and CEO, said during the company’s third-quarter earnings call. “It’s going through the application process, and we’re anticipating closing as soon as we can in 2022.”

New York Community, which hasn’t completed an acquisition since 2010, agreed to buy Astoria Financial in October 2015 but the deal was terminated the following year later after the companies failed to receive regulatory approval.

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