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New York Community Bancorp (NYB) in Westbury, N.Y., barely beat expectations for its third-quarter earnings and reported a lower net interest margin.
October 24 -
Stiffer oversight of banks with assets of $50 billion or more will keep New York Community Bancorp, of Westbury, N.Y., out of the M&A game until a major acquisition comes along, CEO Joseph Ficalora says.
July 31 -
Stephen Steinour, CEO of Huntington Bancshares, played up its efforts to manage asset yields and control funding costs after investors took a dim view of its narrower net interest margin.
October 18
The head of New York Community Bancorp (NYB) blames short-sellers — not its performance — for the nearly 5% slide in its shares Wednesday.
The $44 billion-asset company lost more than $300 million in market capitalization within 90 minutes of markets opening after it
The swiftness of the decline and immense trading volume Wednesday indicated that many short-sellers had bet New York Community would report weak margins, said Joseph Ficalora, New York Community's president and chief executive.
"They act in concert, and they act on the same day," he said. "Unfortunately we had a very big float. It is something they are able to do."
The company estimates that about half its share sales in the first half hour of trading were by short-sellers closing out their positions, Ficalora said.
"A couple of stocks were going up. We could have been the convenient short," he said.
Its trading volume for the day was 10.2 million shares, up from 4.9 million a day earlier.
New York Community's net interest margin fell 13 basis points from the prior quarter and 16 basis points from a year earlier to 3.17% because of lower yields on loans and securities investments. Keefe, Bruyette & Woods had predicted the company would report a net interest margin of 3.19%.
Its shares closed at $13.92 Wednesday and finished Thursday at $13.90.
New York Community, which specializes in property mortgages on New York-area apartment buildings, deserved more credit for its quarterly results, he said.
Higher mortgage banking fees and increased prepayment income from business borrowers refinancing loans helped offset the squeeze low rates are putting on its margin, he said. Those are two income streams a lot of other large business property lenders do not have, he said.
Total loans increased at an annual pace of nearly 5%, to $31.2 million, and deposit costs declined 7 basis points from the trailing quarter, to 0.64%, because a
Net income of $129 million fell 2% from the prior quarter and rose 7.5% from a year earlier.
