NYCB Stock Alert: New York Community Bancorp’s Deposits Fall 7%


  • New York Community Bancorp (NYCB) recently reported that its deposit base has fallen 7% in the last month.
  • However, a group of investors has agreed to buy $1 billion of NYCB stock.
  • New York Community Bancorp also just named a new CEO.
NYCB stock - NYCB Stock Alert: New York Community Bancorp’s Deposits Fall 7%

Source: T. Schneider /

New York Community Bancorp (NYSE:NYCB) reported more bad news this morning, disclosing that its deposit base has dropped 7% over the past month. On a positive note, however, the troubled bank has also obtained $1 billion of funding from a group of investors. Additionally, NYCB may boost Wall Street’s confidence by hiring a new CEO in conjunction with the deal.

NYCB stock is advancing more than 10% as of this writing.

NYCB’s Deposits Fall, Bank Receives Lifeline

Earlier today, NYCB reported that deposits have dropped about 7% since Feb. 5 to $77.2 billion. However, the bank also noted that it has received a $1 billion investment from a consortium of investors led by Steven Mnuchin’s Liberty Strategic Capital.

Mnuchin was once U.S. Treasury Secretary under former President Donald Trump. Other members of the investment group include two well-known hedge funds, Hudson Bay Capital and Citadel Global Equities.

In return for the funds, the investors will receive NYCB stock and four new directors will be added to the board, including Steven Mnuchin. The deal is slated to close by March 11.

On top of this news, NYCB also recently announced that it will slash its quarterly dividend to 1 cent per share from 5 cents.


In conjunction with the $1 billion infusion, Joseph Otting has been named as the CEO of New York Community Bancorp. A former Comptroller of the Currency, in his past role, Otting was “the administrator of the federal banking system and chief officer of the Office of the Comptroller of the Currency,” which regulates banks operating in America.

Otting was also formerly the President and CEO of OneWest Bank and a Vice Chairman of  U.S. Bancorp (NYSE:USB).

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.

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