BaaS drives deposit growth at New York Community

New York Community Bancorp in Hicksville said deposit growth in the second quarter largely reflected growth in its Banking-as-a-Service (BaaS) platform.

The $63.1 billion-asset company said in a press release that its total deposits increased by $3.3 billion from a quarter earlier, to $41.2 billion. Nearly 70% of that increase – $2.3 billion – came from its BaaS operations. 

New York Community had $7.8 billion of BaaS deposits, or roughly 20% of all deposits, on June 30. 

The company said that $5.5 billion of its BaaS deposits are tied to fintech, $1.6 billion is linked to mortgage companies and $652 million is linked to municipalities and the Treasury Department’s prepaid debit card program. 

New York Community also comment on its still-pending acquisition of Flagstar Bancorp, with Thomas Cangemi, the company’s chairman, president and CEO, saying “we feel very good” about the deal. 

“Over the past 15 months, both sides have diligently worked together to get us into a strong position to close the deal quickly once all regulatory approvals are received in order to hit the ground running," Cangemi said.