NY Community Bancorp Stock Sells Off on $2.4B Charge, CEO Exit; Author Sees Value Despite Remaining Risks
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New York Community Bancorp announced a $2.4B goodwill impairment charge, delay in 10-K filing, and resignation of its CEO last week, causing shares to sell off.
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The impairments relate to old transactions and do not impact regulatory capital, but the issues point to weaknesses in internal controls.
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The bank has a strong deposit base with 67% insured deposits, limiting risks of a run.
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Shares now trade at a 75% discount to last reported book value and a 53% discount to risk-adjusted value.
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The author doubled their position on the sell-off given the attractive valuation and deposit base strength, but risks around commercial real estate exposure remain.