NYCB says it has over $18.7 billion in reciprocal deposit capacity

By Thomson Reuters Feb 15, 2024 | 7:15 AM

(Reuters) – New York Community Bancorp has more than $18.7 billion in reciprocal deposit capacity to offer its customers expanded deposit insurance, the lender said on Thursday, as it looks to win investor confidence after a steep selloff in its shares.

It will also hold meetings and events with institutional investors in February and March, the bank disclosed in a regulatory filing.

Shares in the bank have slumped nearly 55% since Jan.31 and triggered credit rating downgrades after it posted a surprise fourth-quarter loss due to its loans tied to the stressed commercial real estate sector and cut its dividend.

It appointed industry veteran Alessandro DiNello as executive chairman, who promised steps to cut back the bank’s exposure to the CRE sector, while its top executives bought its shares to boost investor trust.

NYCB shares were up 1.7% in premarket trading.

(Reporting by Manya Saini in Bengaluru; Editing by Arun Koyyur)