On Friday, it was New York Neighborhood Bancorp‘s (NYSE: NYCB) flip to current its third-quarter monetary outcomes. This was met with a reasonably sharp and detrimental response from the market, which wasted little time in promoting off the inventory to the purpose the place it closed greater than 8% decrease. That was notably worse than the primarily flat efficiency of the bellwether S&P 500 index on the day.
Deep within the purple
For the quarter, New York Neighborhood Bancorp noticed its income fall 7% 12 months over 12 months to $623 million. That was on the again of a 5% slide in complete loans and leases, and, heading within the different course, 5% progress in deposits. As for the underside line, the financial institution posted a typically accepted accounting ideas (GAAP) lack of $280 million, or $0.79 per share. That was in sharp distinction to the Q3 2023 revenue of $207 million.
Citing knowledge compiled by S&P, American Banker mentioned that analysts have been collectively anticipating solely a $141 million loss for the interval.
New York Neighborhood Bancorp is a serious lender for actual property tasks in its namesake metropolis. Weak point in that market has badly affected the lender, which continues to provision closely in opposition to actual property mortgage losses. The corporate’s total provisioning reached $242 million for the quarter in opposition to solely $62 million within the year-ago interval.
Howdy, Flagstar Monetary
New York Neighborhood Bancorp is within the technique of renaming itself; one probably cause is to assist put its just lately troubled previous behind it. The corporate shall be often known as Flagstar Monetary, and its inventory will start buying and selling underneath a brand new ticker image (FLG) beginning at 5 p.m. ET on Friday.
That is symbolic of the financial institution it wish to be — a extra diversified lender much less depending on an actual property market that may be risky. Till it proves that it may possibly efficiently morph into such a enterprise, although, I personally would keep on the sidelines with its inventory.
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Eric Volkman has no place in any of the shares talked about. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure policy.
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