New York Community Bancorp to buy Roslyn Bancorp for 2.43 times revenue

Weekly Corporate Growth Report, Jul 7, 2003

The Deal: New York Community Bancorp has signed a definitive agreement to acquire Roslyn Bancorp Inc. in a stock-swap transaction. New York Community will issue 0.75 shares in exchange for each share of Roslyn outstanding. Based on recent closing prices, the deal values Roslyn stock at $20.33 per share. The deal still requires regulatory and shareholder approval, and is expected to close in the fourth quarter of 2003.

Discussion: Roslyn Bancorp is the holding company for Roslyn Savings Bank. The Bank operates more than 30 branches on Long Island, New York and in New York City. The company's subsidiary, the RSB Agency, sells life insurance, annuities, and mutual funds.

New York Community Bancorp is the holding company for New York Community Bank. The bank operates around 110 branches through six divisions: CFS Bank, First Savings Bank of New Jersey, Ironbound Bank, Queens County Savings Bank, Richmond County Savings Bank, and South Jersey Bank. New York Community also owns three real estate investment trusts and an asset management service firm.

Joseph Ficalora, New York Community's president and chief executive, expects the merger to result in a ten percent growth in 2004 earnings per share, and a pretax cost savings of $30.8 million within the first year.