New York Community to Buy Pennfed

It will pay $260 million.
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New York Community Bancorp

(NYB)

agreed to buy

PennFed

(PFSB)

for $260 million in stock.

The proposed transaction will add 24 branches and $1.5 billion of deposits to the New York Community Bank franchise in New Jersey, increasing its market share in Essex, Hudson, and Union counties, where it currently has eight branches, and expanding its footprint into the central New Jersey counties of Ocean, Monmouth, and Middlesex.

Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, PennFed shareholders will receive 1.222 shares of New York Community Bancorp common stock in a tax-free exchange for each share of PennFed common stock held at the closing date.

PennFed rose 54 cents to $18.82, and N.Y. Community fell 17 cents to $15.79.

This story was created through a joint venture between TheStreet.com and IRIS.