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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