New York Community Bancorp announced on Thursday that it will purchase Astoria Financial Corporation in a $2 billion deal.
As a result of the agreement, Astoria Financial Corporation will merge into New York Community Bancorp, and existing Astoria branches will operate through an Astoria Bank Division of New York Community Bank.
Astoria shareholders will receive one share of New York Community common stock and 50 cents in cash in exchange for each of their shares, according to a press release.
“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,” said Joseph R. Ficalora, president and CEO of the newly formed 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 company will have 241 banking offices in Metro New York, including all five boroughs of New York City, Long Island and Westchester County. New York Community Bank’s branches in Ohio, Arizona, Florida and New Jersey will bring the total to 350 branches and approximately $37.3 million in deposits.
The new company will become a domestic systemically important bank or D-SIB. As a result of the 2008 financial crisis, several banks were categorized as D-SIBs by the Federal Reserve, and are therefore subjected to stringent regulatory supervision.
“Both of us take particular pride in providing exceptional customer service, and both of us are deeply committed to the communities we serve,” Ficalora said. “Both of us stand as symbols of stability, strength and service—qualities that benefit our customers and shareholders alike.”