New York Community Bancorp to buy Astoria Financial in a deal valued at $2B

NYCB is the leading producer of multifamily loans for portfolio in the city
October 30, 2015 09:14AM

New York Community Bancorp is set to take over Astoria Financial in a $2 billion deal that will expand the reach of one of the city’s largest multifamily lenders.

The deal will value Lake Success, New York-based Astoria at $19.66 per share, about 15 percent above its Oct. 22 closing price, the day a possible sale was first reported. Astoria’s shareholders will get one share of NYCB stock, plus 50 cents cash, per share.

Shares of both companies lost value on the announcement, with Astoria’s price falling 7.5 percent to $16.56 and NYCB’s dropping 8.5 percent to $17.53 as of about 11 a.m. Thursday, Bloomberg reported.

NYCB is the nation’s fourth largest thrift bank, and the largest in New York State. It’s also the leading producer of multifamily loans for portfolio in the city, according to SNL Financial, a financial data firm.

The bank generated $3.7 billion in commercial real estate loans in the city in the first half of 2015, according to CrediFi, a property loan analysis firm.

The combined company will have 241 offices in the metro New York area, which includes the city, Long Island and Westchester County, the companies said. In total, the new bank will hold $37.3 billion in deposits. [Bloomberg]Ariel Stulberg