NYCB to Sell $5 Billion of Loans to JPMorgan to Free Up Cash (1)

New York Community Bancorp, disposing of assets and freeing up cash after its rescue by investors, agreed to sell about $5 billion of loans to JPMorgan Chase & Co.

The disposal of so-called mortgage warehouse loans will bolster NYCB’s capital and improve its liquidity, with proceeds to be held in cash and securities, the company said Tuesday in a statementthat didn’t disclose the terms. NYCB had told investors about two weeks ago that it was poised to do a deal of that size at par, minus a transaction fee.

The stock climbed 3.4% to $4.02 in extended ...