NYCB - New York Community Bancorp: Turnaround Story Makes Stock Attractive

2024-06-11 04:13:24 ET

Summary

• NYCB-Flagstar saw a huge crash in its share price, following major dividend cuts amid a lack of liquidity.
• The new team, led by CEO Joseph Otting and former Secretary of Treasury Steven Mnuchin, is working to improve the portfolio and the operational side.
• Q1 2024 results showed some losses being absorbed, but the balance sheet remains stable.
• The biggest and riskiest assets were reassessed in Q1. With more probing to be done in the portfolio, the current price gives some margin of safety on that uncertainty.

New York Community Bancorp ( NYCB ) is a bank holding company, in transition from its NYC focus to being a more national operator. Recently, the share price has seen a significant decrease over the last six months.

Once trading around book value and boasting a 7% dividend yield, NYCB reduced its dividend not once , but twice in this period. Now trading at a major discount to tangible book value, one has to wonder if there's a good asset play here, and perhaps more....

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