So far today, 6.65 million shares of New York Community Bancorp have exchanged hands, compared with its average daily volume of 3.07 million shares.
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New York Community Bank, which took over Ohio Savings/Amtrust in 2009, is buying Astoria Bank for about $2 billion. Astoria’s shareholders will get one share of NYCB stock, plus 50 cents cash, per share.
Additionally, this morning the company announced the pricing of its $650 million common stock offering. The transaction is valued at $2.0 billion and expected to be immediately accretive to pro forma diluted earnings per share and pro forma tangible book value per share.
Citizens Financial Group Inc (NYSE:CFG) jumped 0.21% and is at $24.16 in the Real-Time trading session. The $49 billion multifamily lender announced a merger with $15 billion Astoria Financial (NYSE:AF) on Thursday, the results of which are a mixed blessing for current shareholders.
“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”, Joseph Ficalora, chief executive officer of New York Community Bancorp, said in the statement. New York Community plans to reposition its balance sheet during the fourth quarter of 2015 by prepaying approximately $10 billion of the Company’s wholesale borrowings which is expected to result in a non-recurring after-tax prepayment charge in the amount of $614 million. BB&T Corp.in August agreed to pay $1.8 billion for National Penn Bancshares Inc.
The merger would create a bank with 202 branches in Nassau, Suffolk, Queens and Brooklyn, and with assets of $64.1 billion.
The combined company will have 241 offices in the metro New York area, including all of New York City, Long Island and Westchester County, the companies said. It’s also the leading producer of multifamily loans for portfolio in the city, according to SNL Financial, a financial data firm. With core deposits in New York totaling $9 billion, Astoria Financial is the second-largest thrift depository in the Empire State.
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New York Community is now covered by 20 Wall Street analysts. Sandler O’Neill served as adviser to Astoria and Wachtell, Lipton, Rosen & Katz was legal counsel.
