New York Community Bancorp, the parent of New York Community Bank and New York Commercial Bank, has agreed to acquire Astoria Financial, the parent of Astoria Bank, in a $2bn deal.
As per the agreed terms of the deal, Astoria Financial will merge into New York Community Bancorp, while Astoria Bank will merge into New York Community Bank.
Astoria’s branches will operate via a newly created Astoria Bank Division of New York Community Bank.
Astoria Financial shareholders will receive one share of New York Community Bancorp common stock and 50 cents in cash for each share of Astoria Financial stock held.
The combined entity will have pro forma assets of about $64.1bn, which includes loans, net of about $37.6bn, and securities of nearly $9.4bn.
On a pro forma basis, the merged company will operate with 241 banking offices in Metro New York, including all five boroughs of New York City, Long Island, as well as Westchester County.
Including New York Community’s 115 branches in Ohio, Arizona, Florida, and New Jersey, the combined entity will comprise over 350 branch offices and pro forma deposits worth about $37.3bn.
Joseph Ficalora will continue to hold the role of president and CEO of the merged company.
Astoria Financial and Astoria Bank president and CEO Monte Redman and Astoria Financial chairman Ralph Palleschi will serve as members of the Board of Directors of New York Community Bancorp and its bank subsidiaries.
The transaction, scheduled to close completed in the fourth quarter of 2016, has received the green light from the boards of directors of the two companies. The deal is now subject to shareholder and regulatory approvals.
Ficalora said: "We are truly excited to be announcing this merger with our neighbor and friendly competitor, Astoria Financial, the parent of 127-year old Astoria Bank. We’ve been prepping for a large merger since the end of 2011 and, now that all the stars have aligned, I have to say: It certainly looks and feels right.
"The attributes of this merger are both numerous and substantial — and, in many ways, very similar to those of our early in-market deals. Like every other merger we’ve done, this one will be highly accretive to earnings, as well as accretive to our tangible book value per share. Like each of our previous mergers, this one will also augment our balance and share of deposits — and provide us with opportunities for meaningful revenue growth."