New York Community Bank Says It Will Eliminate 69% Of It’s Mortgage Lending Offices After Merger With Flagstar Bank
New York Community Bank announced Tuesday it is “restructuring” its mortgage operations. Insiders translate that as the bank closing over two-thirds of it’s mortgage lending offices.
The also announcement comes after NYCB completed it’s merger with Flagstar Bank in December.
The announcement was made in its report on fourth-quarter and year-end earnings for 2022. It also comes after Flagstar Bank closed its retail mortgage division and laid off employees last week.
New York Community Bancorp CEO Thomas Cangemi blamed The Federal Reserve and the market.
Cangemi said the bank’s distributed retail channel will now operate, “as an in-branch footprint model.”
New York Community Bank did not say if terminated employees were offered a severance package.
He added that the bank anticipates “that these actions will optimize our mortgage business and improve our profitability during the current downturn.
New York Community Bank Insists They Are Not Exiting Retail
Flagstar Bank SVP Steven Bodakowski insists the the two entities are not exiting retail mortgage lending.
The merger created a regional banking franchise that ranks among the Top 25 banks in the country.
Flagstar Bank operates 395 branches across nine states. Flagstar Mortgage also operates nationally through a wholesale network of approximately 3,000 third-party mortgage originators.
New York Community Bank reported fourth-quarter 2022 net income available to common stockholders of $164 million. This is about 30 cents per diluted share. This is also up from $142 million or 30 cents per diluted share in 2021. The results beat analysts expectations of 27 cents per diluted share.
NYCB also said one-to-four family residential loans held for investment totaled $5.8 billion at year end. They also stated that this is due to the acquisition of Flagstar.
Leave a Reply