Canada markets open in 7 hours 34 minutes

New York Community Bancorp, Inc. (NYCB-PA)

NYSE - NYSE Delayed Price. Currency in USD
Add to watchlist
28.42+0.03 (+0.11%)
At close: 4:00PM EST
Sign in to post a message.
  • B
    Bobby N
    At the margin the components of the stimulus bill should be a plus for NYCB ie rent assistance, stimulus checks etc.

    Lets see if the stock builds back some momentum this week!
  • B
    Bobby N
    Unless we have a market downturn the new range for the stock before earnings should be between the 12 -13.50. With margin and earnings improvement continuing I don't see why we can't end the year in the 16-18 range especially if short term interest rates are not increased. And this doesn't even take into account making progress on lower cost deposit gathering, new products/sources of income, and a possible accretive transaction.

    We have one analyst that has a 15 price target but growth in earnings will cause NYCB to be raised.
  • C
    C
    Brian Chappatta with an interesting column in Bloomberg on regional banks today: https://www.bloomberg.com/opinion/articles/2021-03-03/regional-bank-m-a-won-t-easily-fix-the-tech-gap?srnd=premium&sref=ninuQWC4

    Excerpt:

    Truist, in addition to trimming expenses, may spend $3 billion annually on tech investments, BI’s Chan suggested. That’s still only a fraction of JPMorgan’s outlays, but Kelly King, Truist’s CEO, at least understands the way the industry is moving. Here’s what he said in 2019, soon after debuting a “Disrupt or Die” digital strategy:
    “For most of my career I never worried about Jamie Dimon or anybody else in New York because they had great technology and great volumes but when they came to Main Street, I can win every time because I had better touch and they knew that. But as the digital transformation has changed, touch has to merge with technology so that you get that seamless integration because the client is not going to accept just having someone nice at the branch.”
    Regional bank stocks might have raced to records on pure U.S. growth bets, but from here, further gains look more tied to bets on tech. JPMorgan, Bank of America, Goldman, Truist and even Walmart are jockeying for position, not necessarily in consumers’ neighborhoods or in their wallets, but in their digital lives. An M&A spree will provide regional banks with scale and get them into the tech race, but it won’t change the fact that they’re starting from behind.
    Recent mergers will ensure survival, but digital spending holds the key to gaining market share.
    Recent mergers will ensure survival, but digital spending holds the key to gaining market share.
    www.bloomberg.com
  • U
    Uncle John
    I heard that NYCB's Assistant Regional Managers became Floating Branch Managers, but they never floated and have been in their same positions assisting their Regional Managers. The rank and file have been furious but can't say anything for fear of reprisal. Back office administration either turned a blind eye or did not know, either way their neglect speaks volumes.
  • B
    BrownsTribeCavs
    Bobby - I whole-heartedly agree that likely economic scenarios do not bode well for NYCB until they can secure lower cost funding a la checking accounts. But I believe you are tremendously underestimating what it takes and how long it takes to do that.

    Think about what a giant PITA it is to switch banks in this electronic era. Hence, these accounts are very “sticky” and require major inducements over extended periods of time. I do not believe NYCB has the expertise or the time for this to happen.

    And you are correct, this hole only gets deeper as the economy recovers. Hence the cold reality: NYCB will agree to be acquired by a bank west of NYC this summer in the high teens. BANK ON IT!!
  • B
    Bobby N
    The passage of the Stimulus bill is a double edged sword for NYCB. Rent assistance, stimulus checks(which I believe should be more targeted to the unemployed) and helps given to the states should be beneficial to NYCB. As today's rebound in jobs data and the 10 year treasury continuing its climb could force the Fed to start increasing short term rates sooner then they want. This could possibly happen by the fourth quarter as opposed to the current prevailing thinking of this not happening until sometime in late 2022.

    Unless NYCB can improve their ability to secure lower cost deposits either organically or through a bank merger/partnership the stock will go nowhere and may even decline. This doesn't even mention the fact of improving their ability to find new sources of income/products.

    Lets hope the bank can execute on their plans as the year progresses or the bank may be forced into a deal that is less than desirable to shareholders!
  • B
    Bobby N
    Was there any news today to account for the sell-off? There wasn't big volume so that helps. Might have been a fund that got out today.

    Hopefully we see that stock stabilize and start to move up soon!
  • D
    Diane
    Bank stocks will take out the 2006 highs. Rising interest rates will create wealth for REITS as well. I sold all my bank stocks in 1999 but loaded up on the downturn after the 2008 crash.
  • B
    Bobby N
    New York Community sets sights on M&A
    By Allissa Kline
    January 27, 2021, 4:00 p.m. EST

    New York Community Bancorp is hunting for merger partners in an effort to remix its deposit funding base and transform itself into a full-service commercial bank.

    With a new CEO for the first time in 28 years, the Westbury, N.Y., company intends to focus on multifamily lending but says it is considering myriad ways to attract lower-cost deposits, including adding more products and services that would lead to stickier relationships and hiring teams of bankers from rival firms.

    But the real shift will happen by merging with or acquiring another bank, President and CEO Thomas Cangemi said.

    Building a future ready financial enterprise
    Get the latest news, analysis and resources on the future of digital banking, and the potential of an integrated banking enterprise.

    Speaking to analysts in an earnings call Wednesday, Cangemi said the company is committed to diversifying its balance sheet “over time” and is not interested in building a business line “from scratch.”

    “We’re going to partner [because] partnerships will get it done a lot quicker and will make rational sense,” he said.

    Cangemi took over as CEO of the $56.3 billion-asset New York Community just four weeks ago after longtime CEO Joseph Ficalora abruptly retired at the end of December. Industry watchers have been curious about how Cangemi, previously the company’s chief financial officer, might diversify the funding mix, which for years has been heavily skewed toward higher-cost certificates of deposit.

    At the end of 2020, CDs accounted for nearly a third of New York Community’s $32.4 billion deposit book, according to the company’s latest quarterly presentation. The Federal Reserve’s interest-rate reduction in March gave the company a chance to start repricing CDs at lower costs, but analysts have said that making a traditional bank deal would be the fastest way to cut deposit costs and, in turn, generate more profit.

    New York Community hasn’t completed an acquisition since March 2010. A bid to acquire Astoria Financial in Lake Success, N.Y., fell through in December 2016, more than a year after it was announced.

    One of its key challenges in finding a merger partner is the value of its shares. New York Community’s stock has generally underperformed in recent years and now trades at 80% of its book value. Shares were trading at $10.69 late Wednesday, down 2.5% from Tuesday’s closing price.

    As it waits for the right deal to come along, the company is focusing on making better use of its 236-office branch network, which is spread across five states but predominantly in the New York metropolitan area.

    That means tapping those branches to deepen relationships and bring in core deposits, Cangemi said.

    “I’ve been saying this for years: The low-lying fruit of the full relationship lending is out there,” he said. “If you have a very wealthy family who is looking for a line of credit — and we tend not to service lines of credit — that’s an easy exercise for us. We know the customer. We know the opportunity.”

    There’s also a focus on acquiring banking teams from other companies that could help the company move into new business lines. New York Community built its specialty financing this way and as of Dec. 31 that segment accounted for about 7% of its loan portfolio, with $3.2 billion of outstanding loans and $4.8 billion in commitments.

    “We’re looking at all unique things in the marketplace and we’re very comfortable, like we did with specialty finance, bringing in a team of people from the outside, management left out,” Cangemi said.

    The new strategy was met Wednesday with approval by some of those who follow the company.

    Mark Fitzgibbon, an analyst at Piper Sandler, said in a note to clients that management appears to be “focused on finding a value-creating M&A opportunity to help speed the transformation of the company” and expects it “will be disciplined on pricing” for any such deal.

    “In short we have confidence in management’s ability to grow earnings, smartly evolve the mix of business...and do prudent M&A,” Fitzgibbon wrote.

    The company's fourth-quarter net income rose 87% from a year earlier, to $189.7 million. Earnings per share were 39 cents, beating the consensus estimate of 26 cents from analysts surveyed by FactSet Research Systems.

    The spike in earnings is tied to a one-time income tax benefit of $55.3 million and a double-digit increase in the net interest margin driven by lower funding costs, including a decrease in the average cost of CDs.

    Credit-wise, nearly all of the $5.9 billion of multifamily and commercial real estate loans deferred as of June 30 have returned to making payments, leaving $80 million in deferral status, the company reported.
  • B
    Bofo
    NYCB has had a nice 3 days. Large block trades continue after the close at the closing price. Today I saw 2 huge block trades: One for 2.6 million shares & one for 2.1 million. Large Institutions getting active on NYCB for unknown reasons at this point. If NYCB can keep rising by .25 every day like this, it will be $25/share in April. Pumpers rejoice!!
  • B
    Bobby N
    I believe ISBC can see growth ahead with a little or no premium merger plus adding there banking expertise to charge up NYCB's branch and income/deposit potential.

    If structured correctly it could be a win win for both banks!
  • R
    Rich S.
    Unbelievable, I'm finally even on 9000 shares, not counting all the massive dividends i've received. Congrats to myself for being a believer.
  • B
    Bobby N
    It would be great if NYCB could do a profitable transaction currently but they realize that improving the business metrics and thus the stock price and its currency will take some time.

    Things will take care of themselves in due time!
  • H
    Henry
    a little action in the July 15 call ..the options almost always give it away..yrs ago at my desk I noticed stock and out of the money call volume in COF..it was a Friday and I added to the stock I owned.Made a decision to double up Monday morning when I got in but never had the chance.News before the bell.Got investigated by the SEC
  • B
    Bobby N
    The momentum is definitely with NYCB right now. Does the market know something us average investors don't know?
  • B
    Bobby N
    When a shareholder receives additional shares as part of a dividend reinvestment plan do these shares add to the total share count of a company? If so wouldn't it be dilutive to EPS?
  • C
    C
    My read of NYCB’s outperformance, higher volume, and management comments is that NYCB is preparing to buy a bank. They are effectively buying back shares. I have no idea whom they want. I suspect it’ll be pricy. This is speculative, but based on a reading of available evidence. That is all.
  • R
    Ricardo Velez
    New 52 week high!

    Is a deal on the horizon after PBCT got bought out by MTB?

    Who do you believe will end up buying out NYCB?
  • B
    Bofo
    NYCB having another good day. Up over 2% so far with higher than average volume. 4th day in a row.
    Keep an eye on this...
  • B
    Bobby N
    At what stock price would put NYCB in a position to make an acquisition that could be considered non-dilutive ie 14/share? I know it depends on the target bank and what they will pay for it but it is said that the bank doesn't have the currency to make a good deal presently!