The Bank Slate


JPMorgan Chase buying $5B of New York Community loans

New York Community Bancorp in Hicksville agreed to sell about $5 billion of mortgage warehouse loans to JPMorgan Chase in New York.

The $113 billion-asset New York Community said in a press release that the sale should close in the third quarter. It should add 65 basis points to the CET1 capital ratio, to 10.8%. The proceeds will be reinvested into cash and securities. 

The bank’s loan-to-deposit ratio should fall from 110% at March 31 to 104%.

“We are moving forward quickly to implement our strategic plan, which focuses on improving our capital, liquidity and loan-to-deposit metrics,” Joseph Otting, New York Community’s president and CEO, said in the release. “The mortgage business remains an important business for the company.”

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