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New York Community Bancorp to Sell $5B in Warehouse Loans to JPMorgan
New York Community Bancorp, Inc. has agreed to sell approximately $5 billion in mortgage warehouse loans to JPMorgan Chase Bank, N.A. The transaction is expected to add 65 basis points to the CET1 capital ratio, resulting in a pro-forma CET1 capital ratio of 10.8% as of March 31, 2024.
The sale will also improve the liquidity profile, with proceeds reinvested into cash and securities, increasing the ratio of cash and securities to total assets to 24%. The Bank’s pro-forma loan-to-deposit ratio is expected to decline to 104% compared to 110% at the end of the first quarter of 2024.
The sale is part of the Company’s strategic plan to improve capital, liquidity, and loan-to-deposit metrics. The transaction is subject to completion of due diligence, negotiation of definitive documentation, and satisfaction of customary closing conditions, with an expected closing in the third quarter of 2024.
- ◦Financing
