New York Community Bancorp surges 42% after striking a deal to acquire the assets of failed Signature Bank

A woman leaves a branch of Signature Bank in New York, Monday, March 13, 2023.
A woman leaves a branch of Signature Bank in New York, Monday, March 13, 2023.
  • New York Community Bancorp stock shot up 42% after agreeing to acquire Signature Bank's assets.
  • The company's Flagstar Bank unit will assume most of Signature's deposits and all 40 branches.
  • Wedbush upgraded NY Community Bancorp to outperform, citing an earnings boost from the "sweetheart" deal. 

Shares of New York Community Bancorp are on a tear Monday following news that a subsidiary inked a deal to acquire most of failed Signature Bank's assets.

The bank stock soared as much as 42% intraday, then pared some gains to trade up 30% at $8.54 by midday.

Most of Signature's deposits will be assumed by the subsidiary, known as Flagstar Bank, after entering an agreement with the Federal Deposit Insurance Corporation. The deal, which was announced on Sunday, includes all of Signature's branches and some of its loan portfolio. 

But the takeover doesn't include Signature's $4 billion in crypto-related deposits. The FDIC will return these directly to customers. As for the non-crypto depositors at Signature, they will automatically become Flagstar depositors.

Signature Bank was seized by New York regulators on March 12 following the failure of two other specialists banks: Silicon Valley Bank and Silvergate.

Wedbush upgraded NY Community Bancorp to outperform from neutral , with analyst David Chiaverini citing an expected earnings lift from its Signature deal. 

"NYCB benefits from sweetheart deal as FDIC priced the assets to move quickly," he wrote in a Monday note, adding that the company's earnings per share will get a 20% boost from the acquisition. 

Read the original article on Business Insider


Contributer : Business Insider https://ift.tt/K2ZJrLP
New York Community Bancorp surges 42% after striking a deal to acquire the assets of failed Signature Bank New York Community Bancorp surges 42% after striking a deal to acquire the assets of failed Signature Bank Reviewed by mimisabreena on Tuesday, March 21, 2023 Rating: 5

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