American Banker, April 27, 2022, New York Community and Flagstar delay merger, shift regulatory strategy
New York Community Bancorp and Flagstar Bancorp are extending the deadline for their merger until late October and have decided the combined entity would be a national — not a state-chartered — bank.
The change in strategy comes three months after New York Community said it would provide $28 billion in loans and other support to neighborhoods and small businesses across both banks’ footprints. The plan, which was negotiated with the National Community Reinvestment Coalition, is among a recent string of such agreements that are thought to help pave the way for bank mergers as federal regulators apply greater scrutiny to how such deals affect communities.
