TROY, Mich. (WXYZ) — Troy-based Flagstar Bankcorp announced Monday it will be acquired by New York Community Bancorp in a $2.6 billion deal.
According to Flagstar, the two companies will combine in an all-stock merger with its main headquarters on Long Island and regional headquarters in Troy, which will include Flagstar's mortgage operations.
The Flagstar Bank brand will be maintained in the Midwest as well as the Flagstar mortgage division. All other banks will keep their current branding.
Flagstar's current president and CEO, Alessandro P. DiNello, will become the non-executive chairman, according to a release, while Thomas Cangemi, the current president & CEO of New York Community Bancorp will be president & CEO of the combined company.
"For Flagstar, this is a unique opportunity," DiNello said in a release. "With our existing Flagstar platform, we had every expectation of continuing to build on our success as a leader in creating value in the mid-size bank space. Now, in partnership with NYCB, we are positioned to further accelerate everything we've been doing during my tenure as Flagstar's CEO to build a best-in-class commercial bank, supported by one of the best mortgage and servicing businesses in the country.
The merger is expected to close by the end of the year.