FDIC prices New York Community Bank stock offering

The Federal Deposit Insurance Corp. has priced its secondary offering of New York Community Bancorp common stock.

As part of NYCB's assumption of Signature Bank, the FDIC as receiver was given over 39 million shares which have to be sold by June 8. The equity appreciation provision related to the stock grant had a strike price of $6.65 per share.

The pricing occurred after the market closed on May 16; NYCB ended the day at $10.18 per share. On May 17, the stock opened at $10.75 per share.

This sale is expected to close on May 19.

The pricing information was not provided in a press release by NYCB, and an updated prospectus with that detail had not become available on Edgar at this time.

All proceeds from the sale will go to the FDIC receiver, and it liquidates this entire position.

Signature Bank was seized by the New York Department of Financial Services on March 12 and turned over to the FDIC. Flagstar Bank, NYCB's subsidiary depository, acquired much of the deposits (except those related to digital banking) and certain loan portfolios in an FDIC transaction on March 19. The following day, NYCB opened at $9.12 per share.

Prior to its failure, Signature Bank was a mortgage warehouse credit provider, with loanDepot as one of its most prominent relationships.

That fits well with Flagstar, which a company executive recently noted is the country's second-largest warehouse lender.

At that time, the FDIC received equity appreciation rights in NYCB common stock with a potential value of up to $300 million. If the transaction priced at the May 16 close, the deal could bring in just shy of $400 million. However, the pricing for such secondary offerings is typically at a discount to that closing price.

Barclays is the sole bookrunning manager for this offering.