Harvard Winters • 26 Comments
Harvard Winters • 12 Comments
Wed, Apr. 20, 12:19 PM
- Total assets at the bank fell during Q1, bringing them to $48.5B vs. the $50B threshold at which point the lender must deal with stiffer oversight. The decline means it's more likely the bank crosses that level with a boom - its purchase of Astoria Financial (AF -1.4%), which could come as early as Q3, but more likely after that.
- Sales from the multifamily property loan portfolio helped contribute to this month's decline in assets, but a bigger factor was lower interest rates and thus rising prepayments, says CEO Joseph Ficalora.
- There's rising competition as well, says Ficalora, and it's coming from sizable banks or nonbanks that want a piece of his lender's multifamily action. To Ficalora, it's a sign the cycle is nearing its back end. The newcomers will get shaken out, and long-established players like New York Community Bancorp (NYCB -1.6%) will continue to gain market share.
- Now read: New York Community Bancorp's Merger Doesn't Make Sense
Wed, Jan. 13, 1:14 PM
- It wasn't supposed to be this way after the Fed embarked on a rate hike cycle as these yield-starved names could finally look forward to earning a better spread on their money.
- Since the Fed hiked last month, however, the long bond yield has tumbled about 20 basis points, further narrowing the yield curve.
- With today's 1.3% decline, the XLF is lower by 7.6% YTD, about 200 basis points worse than the S&P 500 (but about 250 basis points better than the energy sector).
- TBTFs: Morgan Stanley (MS -3.9%), Goldman Sachs (GS -2.3%), Citigroup (C -1.8%)
- Regionals: U.S. Bancorp (USB -2%), Regions Financial (RF -3.4%), New York Community Bancorp (NYCB -2.2%)
- Mortgage-related names like Ocwen (OCN -6.2%), Nationstar (NSM -5.3%), Walter Investment (WAC -13.9%), and New Residential (NRZ -5.3%) have come in for particular punishment this day and this year. The mortgage REITs too: Hatteras Financial (HTS -4.4%), Western Asset (WMC -3.6%), New York Mortgage (NYMT -2.3%), Five Oaks (OAKS -5.2%), PennyMac (PMT -2.6%)
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ, XLFS
Nov. 30, 2015, 10:34 AM
- Savaged since its agreement one month ago to purchase Astoria Financial (AF +0.8%) and an accompanying capital raise, New York Community Bancorp (NYCB +1.3%) continues a modest bounce begun mid-month as it's upgraded to Buy at BAML.
- Previously: Investors not impressed as animal spirits return to bank M&A (Oct. 31)
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. 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, 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.
Sep. 22, 2015, 8:48 PM
- First Niagara Financial (NASDAQ:FNFG) +4.9% AH reportedly is exploring a sale of the company or other strategic opportunities, and has hired JPMorgan Chase to advise it on possible moves.
- DealReporter said earlier that the bank had contacted possible buyers, and listed New York Community Bancorp (NYSE:NYCB), Toronto-Dominion Bank (NYSE:TD) and Huntington Bancshares (NASDAQ:HBAN) among possible suitors.
Jul. 8, 2015, 7:40 AM
- After about a 20% run higher from the January lows for New York Community Bancorp (NYSE:NYCB), KBW downgrades the stock to Underperform.
- Shares -2.9% in thin premarket action.
Jun. 2, 2015, 3:31 PM
- The averages are flat to negative this session, but yield-starved financials are digging the big jump in interest rates - the 10-year Treasury yield is up nine basis points on the session to 2.27%, and 15 bps for the week.
- Previously: Yields surge as European deflation fears abate (June 2)
- The Regional Bank ETF (KRE +1.3%) and the Bank ETF (KBE +1.2%).
- Individual names: Regions Financial (RF +1.6%), New York Community Bank (NYCB +1.3%), Huntington Bancshares (HBAN +1.3%), KeyCorp (KEY +1%), Fifth Third (FITB +1.3%). Thought of as perhaps the most asset-sensitive of the large lenders, Bank of America (BAC +1%) is leading the TBTFs higher.
- Life insurers: MetLife (MET +1.2%), Prudential (PRU +1.5%), Lincoln Financial (LNC +0.9%), Primerica (PRI +1.2%).
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, KIE, IAT, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KBWR, KRU, RWW, RYF, KBWP, KBWI, FINZ, KRS
Sep. 17, 2014, 3:16 PM
- Leading markets higher as the reality of higher interest rates gets nearer is the financial sector (XLF +0.9%). Whether its banks, brokerages, or insurers, a higher benchmark rate for some time has been considered a key bullish catalyst. An especially large move is being seen in the online brokerage names who have been forced to forego money market fees for years thanks to ZIRP: E*Trade (ETFC +3%), Schwab(SCHW +3.2%), Ameritrade (AMTD +2%).
- Morgan Stanley (MS +1.8%), Bank of America (BAC +1.2%), JPMorgan (JPM +0.9%)
- U.S. Bancorp (USB +1.1%), Regions Financial (RF +2%), New York Community Bank (NYCB +0.8%), Huntington Bancshares (HBAN +1.3%), KeyCorp (KEY +1.3%)
- MetLife (MET +0.6%), Voya Financial (VOYA +0.7%).
- Chubb(CB +0.4%), AIG (AIG +1.1%), Hartford (HIG +0.8%)
- Financial sector ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, SEF, IYG, IAK, FXO, KBWB, FNCL, RKH, QABA, FINU, KRU, KBWR, RWW, KBWP, RYF, KBWI, KRS, FINZ
Jul. 16, 2014, 3:13 PM
- Flattish for most of the session following this morning's earnings miss, First Republic (FRC -13.7%) tumbles amid the earnings call, with management noting the elevated expenses associated with getting over $50B in assets (and thus being subject to heightened regulatory scrutiny).
- The bank says its efficiency ratio - guided at 59-62% - will remain elevated until sometime in 2016.
- New York Community Bank (NYCB -3%) - also around that $50B level - is sliding in concert.
- Previously: First Republic Bank misses by $0.07, misses on revenue
Jan. 30, 2014, 8:28 AM
- KBW cashes in its chips on New York Community Bancorp (NYCB) following yesterday's earnings, downgrading the stock from Outperform to Market Perform.
- On the earnings call (transcript), KBW's Collyn Gilbert's initial question notes the loan pipeline stood at just $2.4B at the end of Q4 vs. about $4B a year earlier. Management responds that it's happy with recent results and expectations of high single-digit growth for this year could end up being conservative. "The market is very strong, Collyn," says CEO Joseph Ficalora, "And not only will we have growth, but other lenders in this market will have growth."
- Shares -1% premarket
Jan. 29, 2014, 9:55 AM
- Net interest income of $297.3M up $3.1M from Q3 and $7.3M from a year ago. NIM of 2.92% is off 12 basis points from Q3 and 23 bps from a year ago, yet NII gained thanks to $33M of prepayment income - reflecting "particularly robust" activity in multi-family loans even as residential mortgage lending slides. Multi-family loans up 11.3% Y/Y.
- For the full year, multi-family originations of $7.4B rose 28.1% from 2012.
- Noninterest income of $38.8M fell $11.9M from Q3 and $16.7M from a year ago, with mortgage banking income of just $12.8M compared to $16.2M and $32.6M in the earlier periods.
- Noninterest expense of $149.5M fell $853K from Q3 and $5.1M from a year ago.
- CC started at 9:30.
- NYCB -2.2%
Dec. 4, 2013, 9:05 AM
Jun. 20, 2013, 12:36 PMMostly in the green along with the life insurers today is much of the regional banking sector (KRE +0.5%) as a steeper yield curve is sure to boost their barely visible net interest margins. U.S. Bancorp (USB +0.1%), Huntington (HBAN +2.2%), New York Community (NYCB -0.1%), Regions (RF +0.7%), BB&T (BBT +1.2%), PNC (PNC +0.7%), SunTrust (STI +0.7%), KeyCorp (KEY +1.5%), People's Untied (PBCT +1.3%), Zions (ZION +1.9%), Comerica (CMA +1%). | Jun. 20, 2013, 12:36 PM
Jul. 25, 2012, 8:46 AM
More on NY Community Bancorp (NYB): Operating earnings +15.9% Y/Y, ROA of 1.36%, ROE of 17.39%. Net interest margin of 3.30%, +6 bps sequentially thanks to a jump in prepayment penalties (-20 bps Y/Y). Net charge-offs 0.05%, down from 0.09% a year ago. Loans 30-89 days past due -65.5% from 2011's end. Shares +3.2% premarket. (PR)| Jul. 25, 2012, 8:46 AM