NYCB to Sell More Loans to JPMorgan After $5.9 Billion Deal

By David Scheer

Published: July 22, 2024 at 6:52PM EDT

The New York Community Bank (NYCB) logo arranged on a laptop in New York, US, on Thursday, March 7, 2024. Commercial real estate lender New York Community Bancorp received an equity investment of more than $1 billion, gaining a vote of confidence in the struggling lender from investors including former US Treasury Secretary Steven Mnuchin. Photographer: Gabby Jones/Bloomberg (Gabby Jones/Bloomberg)

(Bloomberg) -- New York Community Bancorp, disposing of assets and freeing up cash after its rescue by investors, said it completed selling $5.9 billion of loans to JPMorgan Chase & Co. and plans to sell $200 million more in the near future — going further than previously announced.

The disposals of so-called mortgage warehouse loans will boost NYCB’s common equity Tier 1 capital ratio by about 70 basis points, the company said in a statement Monday. The deal was done at par.

NYCB had announced plans in May to sell about $5 billion of the loans to JPMorgan, predicting that would boost its CET1 ratio 65 basis points. At the time, it expected to wrap up the sale this quarter, following due diligence.