NYCB closes $1 billion capital infusion deal

By Thomson Reuters Mar 11, 2024 | 7:35 PM

(Reuters) -New York Community Bancorp said on Monday it had closed the $1 billion capital infusion deal that was agreed last week with an investor group and plans to submit one-for-three reverse stock split of its common stock to shareholders.

Last week, Joseph Otting, former Comptroller of the Currency in the Trump administration, was named NYCB’s chief executive as part of a $1 billion capital injection from a group of investors that included former U.S. Treasury Secretary Steven Mnuchin.

The lender said last week that it was seeing interest from non-bank bidders for some of its loans and will outline a new business plan in April after the bank had slashed its dividend again and disclosed deposits fell 7%.

Shares in NYCB are up 5.8% at $3.44 in extended trade.

(Reporting by Manya Saini and Nilutpal Timsina in Bengaluru; Editing by Shounak Dasgupta and Rashmi Aich)