"Regulation FD Disclosure, Financial Statements and Exhibits
Item 7.01 Regulation FD Disclosure
On March 30, 2012, New York Community Bancorp, Inc. (the "Company") issued a press release announcing that its wholly-owned savings bank subsidiary, New York Community Bank (the "Bank") has signed an agreement to assume approximately $2.3 billion of FDIC-insured deposits from Aurora Bank FSB.
The transaction, which is subject to regulatory approval, is expected to close in the second quarter of 2012, and the Company will be paid $24.0 million to assume the deposits at that time. In addition, the transaction is expected to be immediately accretive to the Company's earnings.
The press release is attached hereto as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits
(d) Attached as Exhibit 99.1 is the press release issued by the Company on March 30, 2012 to announce the Bank's pending acquisition of deposits from Aurora Bank FSB.
NYCB Press Release
NEW YORK COMMUNITY BANCORP, INC.'S SAVINGS BANK SUBSIDIARY, NEW YORK COMMUNITY BANK, TO ASSUME DEPOSITS OF APPROXIMATELY $2.3 BILLION FROM AURORA BANK FSB Westbury, N.Y., March 30, 2012 -- New York Community Bancorp, Inc. (NYSE: NYB) (the "Company") today announced that its wholly-owned savings bank subsidiary, New York Community Bank (the "Bank"), has signed an agreement to assume approximately $2.3 billion of FDIC-insured deposits, from Wilmington, Delaware-based Aurora Bank FSB (“Aurora Bank”). The transaction 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 ("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. Commenting on the transaction, President and Chief Executive Officer Joseph R. 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.” Subject to regulatory approval, the transaction is expected to close in the second quarter of this year. Sandler O'Neill + Partners, L.P. served as financial advisor to the Company. Keefe, Bruyette & Woods, Inc. served as financial advisor to Aurora Bank and Deutsche Bank Securities Inc. served as co-advisor. Arnold & Porter LLP served as legal advisor to Aurora Bank.
Full Disclosure: I am a buy in the sense that I have a position in NYB approximately 5% of my total portfolio, and am reinvesting my dividends.
Maybe me be more stupider than anyone and buy some more if it falls below the 4/10 low of the day. I do believe that this will be OK. I can always sell my add in a couple of weeks for a slight gain even on a stop. Hope I don't miss out on a good ST trade on my add.
Internet and brokered deposits are generally hot money which runs to the highest rates in the market. If they can hold on to a good percentage and use these deposits to replace higher cost borrowed funds the it is a good deal. Time will tell.
You are right. This deal is good as it is an immediate money maker. To the extent that NYB can turn these hot money type accounts into regular customer accounts will determine just how good this was. At any rate, it woke people up to the fact that NYB is stil looking to deal.