Small Banks Doing Deals

In New York, the shareholders of Long Island Financial approved Wednesday the merger with and into New York Community Bancorp Inc., according to a press release. The transaction is expected to be completed this quarter.

Upon completion of the acquisition, Long Island’s primary subsidiary Long Island Commercial Bank will operate under the name “New York Commercial Bank,” which reportedly is the leading producer of multifamily mortgage loans for portfolio in New York City.

In Fremont, Calif., the Fremont Bank board of directors announced it elected Alan Hyman, 57, as the new chairman. He succeeds his father, Morris Hyman, who passed away.

The new chairman joined Fremont in 1974 after serving in the U.S. Army during the Vietnam War, the announcement said. He is credited for starting the bank’s mortgage servicing department, and with being instrumental in the creation of the “No Closing Costs” program. The Stanford University undergraduate and once director of the California Bankers Association served as Fremont’s president and chief executive before advancing to vice chairman in 2000.

Hyman will lead the company with the creation of a new mortgage software program designed to provide customers with quicker and more efficient service.

Flag Financial Corp. announced today it completed acquiring First Capital Bancorp Inc.

Flag, which has eight mortgage/loan production offices in Georgia, said the move is “a quantum leap” in its growth strategy for Atlanta. The merger will more than double its metro market presence and is projected to make Flag Bank the second-largest community bank headquartered in metro Atlanta, according to the announcement.

In Oregon, Silver Falls Bank has created a new mortgage company, Silver Falls Mortgage, the Statesman Journal reported.

The subsidiary of the Silverton-based community bank will reportedly be based in Salem, start business in December, and have Chery Larson, a longtime mortgage lender in Salem, as its president.

Bankrate.com Inc. will acquire Wescoco LLC, which operates as FastFind, according to an announcement today. The deal, which will cost Bankrate $10 million, is expected to close by the end of the month.

The Federal Reserve Board recently issued an approval order for Sky Financial Group Inc. to acquire Falls Bank. The transaction between the Ohio-based banks must be consummated by mid-February.

Upon review of the merger proposal, the Fed said a commenter alleged, based on 2004 HMDA data, that Sky engaged in disparate treatment of minority individuals in home mortgage operations, had low levels of mortgage lending to such borrowers, and originated mortgages in various states outside its assessment areas.

But the board concluded Sky was “active in helping to meet the credit needs of their entire communities” and that the merger “would expand the availability and array of banking products and services to the customers of Falls Bank,” according to the approval order.