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LI bank assumes $2.3B in former Lehman deposits
Westbury-based New York Community Bancorp Inc. said Friday that it will accept a payment of $24 million as part of its agreement to assume $2.3 billion in FDIC-insured deposits from a former subsidiary of the bankrupt financial services firm Lehman Brothers.
The Aurora Bank FSB deposits are mostly in the form of certificates of deposit.
Aurora, a Delaware bank, will pay NYCB the $24 million. Aurora was formerly known as Lehman Brothers Bancorp Inc., but changed its name after the Lehman Brothers bankruptcy in 2008. Lehman was forced to sell off its units, including Aurora.
NYCB said its subsidiary, New York Community Bank, will assume the $2.3 billion in deposits, which consist of about $1.5 billion in brokered CDs and about $800 million of retail and institutional CDs; and about $30 million in money market accounts.
"This was an attractive opportunity to assume low-cost funding and is consistent with our focus on strategic actions that are accretive to the earnings of the company," Joseph R. Ficalora, president and chief executive of NYCB, said. The sale, if approved by regulators, will probably close within a few months.
New York Community Bancorp Inc. had assets of $42 billion at the end of 2011. It has two bank subsidiaries -- New York Community Bank with 242 branches in New York, New Jersey, Ohio, Florida, and Arizona; and New York Commercial Bank with 34 branches in Manhattan, Queens, Brooklyn, Long Island, and Westchester County.
New York Community Bank's local divisions are Queens County Savings Bank in Queens; Roslyn Savings Bank on Long Island; Richmond County Savings Bank on Staten Island; Roosevelt Savings Bank in Brooklyn; Garden State Community Bank in New Jersey; Ohio Savings Bank in Ohio; and AmTrust Bank in Florida and Arizona.
New York Commercial Bank operates 17 of its branches under the divisional name Atlantic Bank.
Photo shows Joseph R. Ficalora, chief executive and president, New York Community Bancorp Inc.