2024-03-07 10:59:08 ET
New York Community Bancorp Inc (NYSE: NYCB) remains in focus this morning after revealing another 7.0% month-on-month decline in deposits.
NYCB cuts dividend to just 1 cent per share
The embattled regional bank reported $77.2 billion of total deposits today – down from $83 billion a month ago.
also slashed its quarterly dividend further to 1 cent per share on Thursday. That’s on top of a 71% cut to 5 cents a share it announced in January.
Still, the financial services firm is up over 10% at writing based on a $1.0 billion capital infusion it received from several investment firms last night as Invezz reported here .
NYCB stock has been under renewed pressure ever since it disclosed “material weakness” in its “internal controls related to loan review”.
What percentage of NYCB deposits are uninsured?
New York Community Bancorp also confirmed this morning that under 20% of its total deposits are uninsured – a lower concentration compared to its peers.
While the aforementioned $1.0 billion cash infusion is a vital relief for the struggling regional bank, Wall Street seems to remain cautious on still. Analysts at Wedbush Securities, for example, said in their research note today:
“While this deal provides a much-needed lifeline to NYCB, it is tremendously dilutive to common shareholders.”
named Joseph Otting its new chief executive last night and named four new members to its board including Steven Mnuchin – the former Treasury Secretary ( find out more ).
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