New York Community Bank, of Westbury, said Friday it has bought a failed Arizona bank from the Federal Deposit Insurance Corporation.
Under the terms of the agreement, Community Bank got assets of about $500 million and a half-dozen branch offices from Phoenix-based Desert Hills Bank, according to a news release from the savings bank's parent, New York Community Bancorp Inc.
All assets acquired in the transaction are subject to loss sharing agreements with the FDIC, the bank said. The loss sharing agreements will reimburse the bank 80% of the first $101.4 million in losses and 95% of remaining losses.
The Community Bank also assumed liabilities of about $450 million in the transaction, including deposits of about $400 million and borrowings of about $45 million.
To pay for the transaction, Community Bank raised $29 million earlier in March by issuing 1.8 million shares.
After buying Desert Hills, the Community Bank now has 18 branch offices in Arizona. Last week's buy follows a Dec. 4 acquisition of AmTrust Bank in Arizona, with 12 branches. The newly acquired Desert Hills branches were set to open Monday as "AmTrust Bank, a Division of New York Community Bank."