New York Community Shares Climb on Deal
WESTBURY, N.Y. ( TheStreet) -- Investors responded enthusiastically after New York Community Bancorp (NYB) took over the failed AmTrust Bank of Cleveland Friday night and announced an offering of 60 million shares before the market opened Monday.
The shares closed up 8.7% to $13.40 Monday, after rising as much as 11% earlier in the day, despite the coming dilution. The stock has climbed 22% this year, beating the 9% advance of the S&P 400 Financials Index.
New York Community acquired $11 billion in assets, $8 billion in deposits and $3 billion in wholesale borrowings in the government-assisted transaction Friday. The Federal Deposit Insurance Corp. agreed to share losses from $6 billion in single-family mortgages and consumer loans. The FDIC retained AmTrust's nonperforming loans, private-label mortgage-backed securities and mortgage servicing rights.
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