New York Community Bancorp Inc.NYSE
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  • Tue, Apr. 26, 3:41 PM
    • Shareholders of both companies approved New York Community Bancorp's (NYCB +1%) purchase of Astoria Financial (AF +1.1%). The deal now waits upon regulatory approval.
    • Related: New York Community Bancorp's (NYSE:NYCB) CEO Joseph Ficalora on Q1 2016 Results - Earnings Call Transcript (April 20)
    | Tue, Apr. 26, 3:41 PM | 1 Comment
  • Oct. 31, 2015, 2:04 PM
    • Sizable bank mergers were supposed to be no-brainers as lenders - weighed down by a sluggish lending environment, overlapping branch networks, and high regulatory costs - sought operating synergies. Unfortunately, regulators since the financial crisis have had different ideas about what banks should be doing with their capital (namely, storing it for a rainy day).
    • The M&T/Hudson City merger finally getting approval (after a three-year delay), along with quick green lights for a couple of BB&T purchases began to give investors hope, and this week they got KeyCorp (NYSE:KEY) agreeing to buy First Niagara (NASDAQ:FNFG), and New York Community Bancorp's (NYSE:NYCB) deal for Astoria Financial (NYSE:AF).
    • The reaction: KeyCorp is lower by more than 10% since the news was announced, and First Niagara by more than 6%; NYCB is off nearly 14%, and Astoria 11%.
    • "This level of selloff is not typical," says Sterne Agee's Peter Winter. "Early reactions to bank transactions often are bumpy," says KeyCorp CEO Beth Mooney.
    • CLSA's Mike Mayo calls Key's purchase "strategically good," but isn't a fan of the bank's plan to fund a major portion of the deal with stock. NYCB is also funding much of its buy with stock, and the deal includes a cut in the dividend - maybe not the greatest move considering the income-oriented lean of the bank's investor base, says Winter.
    • Previously: More losses for NYCB as secondary prices; Astoria lower too (Oct. 30)
    • Previously: KeyCorp not expecting M&T-like deal hold-up (Oct. 30)
    | Oct. 31, 2015, 2:04 PM | 21 Comments
  • Oct. 30, 2015, 11:25 AM
    • New York Community Bancorp (NYCB -2.3%) prices a 40.625M share secondary at $16 each, and expects net proceeds of $630.5M.
    • As promised yesterday, most of the money will be used to inject capital into New York Community Bank to make up for the $614M Q4 charge associated with prepaying $10B of wholesale borrowings.
    • Today's decline brings the stock to $16.49. Also lower is Astoria Financial (AF -2.7%), which is selling itself to NYCB for one share of NYCB and $0.50 cash for each share of AF.
    • Previously: Barron's: 4 reasons investors hate the NYCB-Astoria deal (Oct. 29)
    • Previously: New York Community Bancorp buying Astoria Financial (Oct. 29)
    | Oct. 30, 2015, 11:25 AM | 16 Comments
  • Oct. 29, 2015, 3:57 PM
    • First off, writes Amey Stone, New York Community Bank (NYCB -11.7%) will cut its dividend to $0.17 from $0.25 next year. Second, NYCB is raising equity to pay down debt.
    • Third, as part of the debt payoff, the bank is taking a $614M charge (the bank earned less than $500M in the twelve months ended Sept. 30). Fourth, the acquisition will thrust NYCB past $50B in assets and into the ranks of domestically systemically important banks - thus subjecting the lender to greater regulatory attention.
    • There are, of course, strategic benefits - look for branch closures and other consolidation - and NYCB sees 20% earnings accretion beginning in 2017.
    • Astoria Financial (AF -10.4%)
    • Previously: New York Community Bancorp buying Astoria Financial (Oct. 29)
    | Oct. 29, 2015, 3:57 PM | 18 Comments
  • Oct. 29, 2015, 11:57 AM
    • Under terms of the deal (approved by both boards), Astoria Financial (AF -7.6%) owners will receive one share of New York Community Bancorp (NYCB -9%) and $0.50 in cash for each share of AF they hold. Assuming the regulators sign off, the deal is expected to close in about a year.
    • Ahead of the purchase, NYCB plans to "reposition" its balance sheet by prepaying about $10B of wholesale borrowings - expected to result in a $614M charge this quarter. To offset the impact on capital, the bank plans to raise funds with a stock sale for at least that amount.
    • NYCB expects the merger to result in 20% pro forma earnings accretion in 2017 and a 6% accretion to tangible book value at closing.
    | Oct. 29, 2015, 11:57 AM | 23 Comments
  • Oct. 2, 2015, 11:33 AM
    • The long-awaited regulatory approval of the M&T Bank's purchase of Hudson City Bancorp, and the relatively quick green light for BB&T's acquisition of Susquehanna Bancshares has lifted M&A animal spirits in the regional bank sector.
    • Another possible buyer could be Regions Financial (NYSE:RF) - its done well on its annual stress tests, and has expressed a willingness to look into deals. There's also Memphis-based First Horizon National (NYSE:FHN), though at least one activist believes the bank is more target than hunter.
    • Possible sellers include First Niagara Financial (NASDAQ:FNFG), which has already put itself on the block.
    • A target for BBT or Regions might be Georgia's Synovus Financial (NYSE:SNV), with $27B in assets, and an activist investor pushing for a sale.
    • Another target might be Astoria Financial (NYSE:AF), with $15.3B in assets, and a neighbor in New York Community Bancorp (NYSE:NYCB) which might be on the hunt for acquisitions.
    | Oct. 2, 2015, 11:33 AM | 8 Comments
  • Mar. 11, 2015, 3:10 PM
    • "First Niagara (FNFG +0.9%) clearly bit off more than they could chew, trying to do four large acquisitions over a three-year period of time," says analyst Robert Wagner. Now it's paying the price, writes Patty Tascarella, in terms of lagging profits and pressure on the management team to turn things around.
    • If no turnaround, who might be a buyer? It would have to be a sizable player, given FNFG's $38B balance sheet.
    • Two Ohio-based banks which already have retail presences in Pittsburgh - where Fifth Third operates 59 branches - could make sense, particularly Fifth Third Bank (NASDAQ:FITB), and maybe Huntington Bancshares (NASDAQ:HBAN).
    • BB&T (NYSE:BBT) is in the process of buying eastern-PA's Susquehanna Bancshares, and might want to extend its footprint further west, but it could be another few years before BB&T is ready for another major deal.
    • Then there's Cleveland-based KeyCorp (NYSE:KEY) which may want to move into a contiguous market, and New York Community Bancorp (NYSE:NYCB) which is based in the same state as First Niagara.
    | Mar. 11, 2015, 3:10 PM | 6 Comments
  • May 25, 2012, 12:33 PM

    Hudson City Bancorp (HCBK) could fetch a 31% premium to its current price in a sale to an acquirer "that could take substantial liability marks," reckons Stern Agee's Matt Kelley. Continued to be mentioned as a possible bidder is New York Community Bancorp (NYB).

    | May 25, 2012, 12:33 PM | 2 Comments