Southern National and New York Community Acquire Deposits and Assets of Failed Banks
Monday, December 7, 3:18 PM ET
Sonabank, a subsidiary of Southern National Bancorp of Virginia (SONA) agreed with the FDIC to assume all of the deposits as well as certain assets of Greater Atlantic Bank. Sonabank will receive 179 million dollars of deposits, as well as 142 million dollars of loans. The FDIC agreed to cover 80% of losses on the disposition of the loans. Sonabank said it will receive the assets at a 20 million dollar discount, and is not paying any premium on deposits. On Monday, shares of Southern National were soaring more than 19 and a half percent.
And New York Community Bancorp (NYB) agreed with the FDIC to acquire all of the deposits and certain assets and liabilities of AmTrust Bank. New York Community gets 8 billion dollars of deposits as part of the deal, as well as 6 billion dollars of single-family mortgage and consumer loan assets. Under the terms of the agreement, non-performing loans and certain other assets are excluded from the deal. The company said the deal will be immediately accretive to earnings. In connection with the acquisition, New York Community Bancorp announced it plans to offer 60 million common shares in a public offering led by Credit Suisse (CS) as the sole book-running manager, with co-managers including BofA Merrill Lynch (BAC), J.P. Morgan (JPM), and Raymond James (RJF). Shares of New York Community Bancorp gained more than 10% in early trading Monday.
For MarketNewsVideo.com, I'm Angela Salvucci.
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