Sale of deposits to New York Community Bank
Our attorneys represented Aurora Bank, FSB in the sale of US$2.2 billion FDIC-insured deposits to New York Community Bank, representing all of the deposits not held by an Aurora affiliate. The majority of the deposits assumed are short-term certificates of deposit (CDs), including approximately US$1.4 billion of brokered CDs and approximately US$768 million of retail and institutional CDs. In addition, New York Community Bank also assumed approximately US$13 million of money market accounts.
The sale of the deposits was part of a broad competitive bidding process involving all of the bank's assets. We assisted in the design of the bid process and the creation of the marketing materials and virtual data room. As a result of this process, we successfully negotiated the definitive sale agreement and a related parent company guaranty with respect to the bank's indemnification obligations. We also prepared relevant application materials that resulted in the receipt of OCC approval of the sale and assisted in the process by which New York Community Bank obtained FDIC and New York State approval. The sale was completed on June 28, 2012.