Gold prices edge higher with focus on Ukraine-Russia, Jackson Hole
HICKSVILLE, N.Y. - New York Community Bancorp , Inc. (NYSE: NYSE:NYCB), the parent company of Flagstar Bank, N.A., announced today that its common stock will commence trading on a reverse split-adjusted basis. This follows the one-for-three reverse stock split that became effective on Thursday after the market closed, as previously approved by shareholders on June 5 and confirmed by the board of directors on June 26.
The reverse stock split reduces the number of shares a shareholder owns, but the value of the shareholder's total holding remains the same. For every three shares owned, shareholders will now hold one share.
This action also decreases the total number of authorized shares from 2 billion to approximately 666.7 million, maintaining the same par value per share. Shareholders who would have received fractional shares will instead receive a cash payment for the fraction they would have owned.
The company's common stock will continue to trade under the ticker symbol NYCB, with a new CUSIP number of 649445400. As of March 31, 2024, New York Community Bancorp reported assets of $112.9 billion, loans of $83.3 billion, deposits of $74.9 billion, and total stockholders' equity of $8.4 billion.
Flagstar Bank operates 419 branches across several regions and Flagstar Mortgage has a national presence through a network of approximately 3,000 third-party mortgage originators. The company has established a significant footprint in multi-family lending, mortgage origination and servicing, as well as warehouse lending.
The reverse stock split is part of New York Community Bancorp's strategy as it continues to navigate the complex financial landscape and aims to enhance shareholder value.
In other recent news, New York Community Bancorp has been the subject of several significant developments. Citi has raised the bank's price target to $4.00 from $3.50 based on optimistic expectations for the upcoming Q2 earnings report.
Additionally, New York Community Bancorp is set to implement a one-for-three reverse stock split in mid-to-late July. The bank also recently completed the acquisition of assets from the collapsed Signature Bank (OTC:SBNY), with a total fair value estimated at $37.8 billion. This includes $24.9 billion in cash and cash equivalents and $11.7 billion in loans and leases.
Liberty Strategic Capital, led by former U.S. Treasury Secretary Steven Mnuchin, disclosed a 7.7% ownership in the bank. This stake was revealed following the firm's participation in an investor consortium that injected approximately $1 billion into New York Community Bancorp earlier this year.
InvestingPro Insights
As New York Community Bancorp (NYCB) transitions through its reverse stock split, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, NYCB's market capitalization stands at a revised $3.88 billion, reflecting the recent changes in share structure. Notably, the company's revenue saw an impressive growth of 85.66% over the last twelve months as of Q1 2024, despite a quarterly revenue decline of -8.92% in Q1 2024. This juxtaposition highlights the dynamic nature of NYCB's financial trajectory.
Investors should also take note of NYCB's price volatility, as indicated by the significant returns over the last week, month, and three months of 9.85%, 12.54%, and 29.98%, respectively. However, this is contrasted by a -62.7% return over the last six months and a year-to-date price total return of -63.54%, underscoring the high-risk profile of the stock. Despite these fluctuations, NYCB has maintained its dividend payments for 31 consecutive years, a testament to its commitment to shareholder returns.
InvestingPro Tips for NYCB reveal critical insights: the company is quickly burning through cash and analysts have revised their earnings downwards for the upcoming period. Additionally, they predict a sales decline in the current year and do not anticipate the company will be profitable this year. These factors should be carefully considered by investors looking at the long-term prospects of NYCB. For those seeking more in-depth analysis, there are 14 additional tips available on InvestingPro. To access these insights and more, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.