WESTBURY, N.Y. ( TheStreet) -- Investors responded enthusiastically after New York Community Bancorp ( NYB) took over the failed AmTrust Bank of Cleveland Friday night and announced an offering of 60 million shares before the market opened Monday.

The shares closed up 8.7% to $13.40 Monday, after rising as much as 11% earlier in the day, despite the coming dilution. The stock has climbed 22% this year, beating the 9% advance of the S&P 400 Financials Index.

New York Community acquired $11 billion in assets, $8 billion in deposits and $3 billion in wholesale borrowings in the government-assisted transaction Friday. The Federal Deposit Insurance Corp. agreed to share losses from $6 billion in single-family mortgages and consumer loans. The FDIC retained AmTrust's nonperforming loans, private-label mortgage-backed securities and mortgage servicing rights.

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New York Community said the deal boosted its total assets to $42 billion, making it the 24th-largest regional bank. Its deposits rose 55% to $22 billion. The company expanded its footprint to Ohio, Arizona and Florida.

Last month, we included New York Community Bancorp in a profile of three banks that pay high dividends. The shares yielded 9.4% at the time, but the stock had dropped as investors questioned the company's ability to keep paying its annual dividend of $1. The company's payout has exceeded earnings for the past three years.

The transaction boosted the portion of funding that comes from retail deposits to 60% from 50% as of Sept. 30. New York Community plans to use the $4 billion in cash acquired from AmTrust to pay down wholesale borrowings. The company has been trying to reduce its reliance on wholesale funding.

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