On Thursday, February 1, 2024, New York Community Bank (NYCB) is headquartered in Hicksville, New York, United States.
Guan Bing | Bloomberg | Getty Images
New York Community Bank The company said on Thursday it had lost 7% of its deposits in a tumultuous month, before announcing investors led by former Treasury Secretary Steven Mnuchin’s Liberty Strategy Capital Capital injection of over US$1 billion.
NYCB said in an investor note that as of March 5, the bank had $77.2 billion in deposits Promotional meeting Tied to raising funds. That’s down from $83 billion as of Feb. 5, the day before Moody’s Investors Service downgraded the bank’s credit rating to junk status.
NYCB also said it would cut its quarterly dividend for the second time this year, from 5 cents to 1 cent per share, a drop of 80%. The bank paid a 17-cent dividend until it reported an unexpected fourth-quarter loss, kicking off a negative news cycle for the Long Island-based bank.
NYCB’s stock price was in turmoil on concerns about the bank’s loan book and deposit base before a group of private equity investors led by Mnuchin’s Liberty Strategy Capital announced a major lifeline on Thursday. In just over a month, the bank has twice replaced its chief executive, received two rounds of downgrades from rating agencies and announced deepening losses.
NYCB stock hit its lowest point on Wednesday, falling below $2 a share.
But the capital infusion raised hopes that it now has enough time to resolve lingering questions about the risk of multifamily apartment loans in the New York area, as well as “significant deficiencies” in loan reviews that the bank disclosed last week .
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