New York Community Bancorp Has Big Transformation Plans. Can It Accomplish Them?
New York Community Bancorp (NYSE: NYCB) put the finishing touches on a nice year in the fourth quarter of 2020, and it looks to have another solid year ahead in terms of earnings. But the bank and its new leadership is much more focused on breaking away from its roots and transforming itself to create more shareholder value. Let's take a look at what new leadership has in mind for the transformation and also examine if it's achievable.
NYCB is a roughly $56 billion-asset bank that is primarily a multifamily lender focused on nonluxury, residential apartment buildings with rent-regulated units. Because multifamily loans typically don't come with a lot of core deposits, the bank funds itself through a thrift model, which is an older type of bank model that relies on higher-cost deposits from sources such as certificates of deposit, savings and money market accounts, and other interest-bearing deposit sources.
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Source Fool.com
