TRANSACTION ADDS 60 BASIS POINTS TO CET1 RATIO
AND ACCELERATES TRANSITION TO A LEADING DIVERSIFIED, FULL-SERVICE
REGIONAL BANK
HICKSVILLE, N.Y., July 25,
2024 /PRNewswire/ -- Flagstar Bank, N.A. (the
"Bank"), the bank subsidiary of New York Community Bancorp, Inc.
(NYSE: NYCB) (the "Company") announced today that, it entered into
a definitive agreement to sell its residential mortgage servicing
business, including mortgage servicing rights and the third-party
origination platform to Mr. Cooper (NASDAQ: COOP), a leading
non-bank mortgage originator and servicer for approximately
$1.4 billion. The transaction is
expected to close during the fourth quarter of 2024.
Upon closing, the Company expects that the transaction will add
approximately 60 basis points to its CET1 capital ratio, as
converted for the remaining outstanding Series B Preferred
Stock.
Commenting on today's announcement, Chairman, President, and
Chief Executive Officer Joseph M.
Otting stated, "The Flagstar mortgage servicing platform is
well-respected throughout the industry, which we believe is
reflected in the premium we received. While the mortgage servicing
business has made significant contributions to the Bank, we also
recognize the inherent financial and operational risk in a volatile
interest rate environment, along with increased regulatory
oversight for such businesses.
"We are focused on transforming the Bank into a leading,
relationship-focused regional bank. Consistent with that strategy,
we will continue to provide residential mortgage products to the
Bank's retail and private wealth customers. We are grateful to our
customers for their partnership and loyalty over the years and look
forward to deepening those relationships.
"This was not a decision we took lightly and I want to thank our
teammates in mortgage servicing and third-party mortgage
originations and all of the support teams who deliver high-quality
service day-in and day-out. Mr. Cooper is a major player in the
mortgage origination and servicing business. It was important to us
that we commit to a buyer with strong mortgage expertise and
reputation, and a shared commitment to customer service excellence
and employee values."
Jefferies LLC is acting as exclusive financial advisor to New
York Community Bancorp, Inc.
About New York Community Bancorp, Inc.
New York Community Bancorp, Inc. is the parent company of
Flagstar Bank, N.A., one of the largest regional banks in the
country. The Company is headquartered in Hicksville, New York. At March 31, 2024, the Company had $112.9 billion of assets, $83.3 billion of loans, deposits of $74.9 billion, and total stockholders' equity of
$8.4 billion.
Flagstar Bank, N.A. operates over 400 branches, including a
significant presence in the Northeast and Midwest and locations in
high-growth markets in the Southeast and West Coast. Flagstar
Mortgage operates nationally through a wholesale network of
approximately 3,000 third-party mortgage originators. In addition,
the Bank has approximately 90 private banking teams located in over
ten cities in the metropolitan New York
City region and on the West Coast, serving the needs of
high-net worth individuals and their businesses.
Cautionary Note Regarding Forward-Looking Statements
The foregoing disclosures may include forward‐looking statements
within the meaning of the federal securities laws by the Company
pertaining to such matters as our goals, intentions, and
expectations regarding (a) revenues, earnings, loan production,
asset quality, liquidity position, capital levels, risk analysis,
divestitures, acquisitions, and other material transactions, among
other matters; (b) the future costs and benefits of the actions we
may take; (c) our assessments of credit risk and probable losses on
loans and associated allowances and reserves; (d) our assessments
of interest rate and other market risks; (e) our ability to execute
on our strategic plan, including the sufficiency of our internal
resources, procedures and systems; (f) our ability to attract,
incentivize, and retain key personnel and the roles of key
personnel; (g) our ability to achieve our financial and other
strategic goals, including those related to our merger with
Flagstar Bancorp, Inc., which was completed on December 1, 2022,
our acquisition of substantial portions of the former Signature
Bank through an FDIC-assisted transaction, and our ability to fully
and timely implement the risk management programs institutions
greater than $100 billion in assets must maintain; (h) the effect
on our capital ratios of the approval of certain proposals approved
by our shareholders during our 2024 annual meeting of shareholders;
(i) the conversion or exchange of shares of the Company's preferred
stock; (j) the payment of dividends on shares of the Company's
capital stock, including adjustments to the amount of dividends
payable on shares of the Company's preferred stock; (k) the
availability of equity and dilution of existing equity holders
associated with amendments to the 2020 Omnibus Incentive Plan; (l)
the effects of the reverse stock split; and (m) transactions
relating to the sale of our mortgage business and mortgage
warehouse business.
Forward‐looking statements are typically identified by such
words as "believe," "expect," "anticipate," "intend," "outlook,"
"estimate," "forecast," "project," "should," "confident," and other
similar words and expressions, and are subject to numerous
assumptions, risks, and uncertainties, which change over time.
Additionally, forward‐looking statements speak only as of the date
they are made; the Company does not assume any duty, and does not
undertake, to update our forward‐looking statements. Furthermore,
because forward‐looking statements are subject to assumptions and
uncertainties, actual results or future events could differ,
possibly materially, from those anticipated in our statements, and
our future performance could differ materially from our historical
results.
Our forward‐looking statements are subject to, among others, the
following principal risks and uncertainties: general economic
conditions and trends, either nationally or locally; conditions in
the securities, credit and financial markets; changes in interest
rates; changes in deposit flows, and in the demand for deposit,
loan, and investment products and other financial services; changes
in real estate values; changes in the quality or composition of our
loan or investment portfolios, including associated allowances and
reserves; changes in future allowance for credit losses, including
changes required under relevant accounting and regulatory
requirements; the ability to pay future dividends; changes in our
capital management and balance sheet strategies and our ability to
successfully implement such strategies; recent turnover in our
Board of Directors and our executive management team; changes in
our strategic plan, including changes in our internal resources,
procedures and systems, and our ability to successfully implement
such plan; changes in competitive pressures among financial
institutions or from non‐financial institutions; changes in
legislation, regulations, and policies; the imposition of
restrictions on our operations by bank regulators; the outcome of
pending or threatened litigation, or of investigations or any other
matters before regulatory agencies, whether currently existing or
commencing in the future; the success of our blockchain and fintech
activities, investments and strategic partnerships; the
restructuring of our mortgage business; the impact of failures or
disruptions in or breaches of the Company's operational or security
systems, data or infrastructure, or those of third parties,
including as a result of cyberattacks or campaigns; the impact of
natural disasters, extreme weather events, military conflict
(including the Russia/Ukraine conflict, the conflict in Israel and surrounding areas, the possible
expansion of such conflicts and potential geopolitical
consequences), terrorism or other geopolitical events; and a
variety of other matters which, by their nature, are subject to
significant uncertainties and/or are beyond our control. Our
forward-looking statements are also subject to the following
principal risks and uncertainties with respect to our merger with
Flagstar Bancorp, which was completed on December 1, 2022, and our acquisition of
substantial portions of the former Signature Bank through an
FDIC-assisted transaction: the possibility that the anticipated
benefits of the transactions will not be realized when expected or
at all; the possibility of increased legal and compliance costs,
including with respect to any litigation or regulatory actions
related to the business practices of acquired companies or the
combined business; diversion of management's attention from ongoing
business operations and opportunities; the possibility that the
Company may be unable to achieve expected synergies and operating
efficiencies in or as a result of the transactions within the
expected timeframes or at all; and revenues following the
transactions may be lower than expected. Additionally, there can be
no assurance that the Community Benefits Agreement entered into
with NCRC, which was contingent upon the closing of the Company's
merger with Flagstar Bancorp, Inc., will achieve the results or
outcome originally expected or anticipated by us as a result of
changes to our business strategy, performance of the U.S. economy,
or changes to the laws and regulations affecting us, our customers,
communities we serve, and the U.S. economy (including, but not
limited to, tax laws and regulations).
More information regarding some of these factors is provided in
the Risk Factors section of our Annual Report on Form 10‐K/A for
the year ended December 31, 2023,
Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, and in other SEC reports we file.
Our forward‐looking statements may also be subject to other risks
and uncertainties, including those we may discuss in this
Amendment, during investor presentations, or in our other SEC
filings, which are accessible on our website and at the SEC's
website, www.sec.gov.
Investor Contact:
Salvatore
J. DiMartino
(516) 683-4286
Media Contact:
Steven
Bodakowski
(248) 312-5872
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SOURCE New York Community Bancorp, Inc.