TROY, Mich. (WANE) Flagstar Bancorp., which operates banks in Michigan, Indiana, Michigan, Ohio and Wisconsin has agreed to merge with New York Community Bancorp., which operates banks in several states. The merger announcement was made Monday morning.
According to information on Flagstar’s website, the new company will have over $87 billion in assets and operate nearly 400 traditional branches in nine states and 87 loan production offices across a 28 state footprint. It will have its headquarters on Long Island, N.Y. with regional headquarters in Troy, MI, including Flagstar’s mortgage operations. The combined company will maintain the Flagstar Bank brand in the Midwest. Flagstar’s mortgage division will also maintain the Flagstar brand. Other states will retain their current branding.
Under terms of the agreement, unanimously approved by the Boards of Directors of both companies, Flagstar shareholders will receive 4.0151 shares of New York Community common stock for each Flagstar share they own. Following completion of the transaction, the New York Community shares held by New York Community shareholders immediately prior to the transaction are expected to collectively represent approximately 68% of the combined company and the New York Community shares issued to Flagstar shareholders in the merger are expected to represent approximately 32% of the combined company.
The merger still needs regulatory approval and the deal is expected to be finalized by the end of 2021.