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Nearly 30 Ohio Savings bank branches in Greater Cleveland are now part of a regional bank that ranks among the top 25 banks nationwide, with nearly $90 billion in assets, thanks to an acquisition.
New York Community Bancorp Inc. in Hicksville, New York, has completed its acquisition of Flagstar Bancorp Inc. in Troy, Michigan, the New York banking company said in a statement.
New York Community Bank, the main banking unit of the New York banking corporation, acquired Ohio Savings Bank and its AmTrust banking and mortgage operations in 2009 in a deal assisted by the FDIC, a representative for the New York bank said in an email.
The combined banking company had $88 billion in assets, $66 billion in loans, deposits of $58 billion and stockholders' equity of $9 billion on Sept. 30, on a pro forma basis, New York Community Bancorp said.
The combined banking unit, which now goes by the name Flagstar Bank N.A., operates 395 branches in nine states and Flagstar Mortgage operations nationwide, the New York bank corporation said.
"The merger creates a company with significant scale and capabilities with a more diversified loan portfolio, an improved funding mix and a much better interest-rate risk profile," said Thomas Cangemi, president and CEO of New York Community Bancorp, in a statement.
Both New York Community and Flagstar will continue to operate their retail banking networks separately under their respective brands, the New York bank corporation said.
Customers at both banks, including Ohio Savings, are not expected to experience any immediate changes.
However, New York Community Bancorp said it eventually plans to announce a single brand for the combined company.
Based on the Dec. 1 closing price of New York Community Bancorp's stock, the acquisition, which was affected by a stock swap, was worth about $2 billion.
Ohio Savings traces its roots to Ohio Savings, Loan & Building Co., which opened in 1889 on W. 25th Street on Cleveland's near west side, according to the Encyclopedia of Cleveland History.
Clevelander Leo Goldberg purchased control of the company in 1961. After Leo Goldberg died a decade later, his son, Robert Goldberg, became president of the association and rapidly grew the bank through acquisitions, the encyclopedia states.
Shares of New York Community Bancorp (NYSE: NYCB) were down 1.6% to $9.05 in early afternoon trading on Friday.
