This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

New York Community Bank: Best in Class

WESTBURY, N.Y. ( TheStreet) -- New York Community Bancorp (NYB) has an interesting way of checking up on properties that are funded by a loan from the bank -- it sends a board member along with management out to inspect.

"Our board has been incredibly proactive with regards to determining that we are in fact undertaking reasonable credit risks," Chairman and CEO Joseph Ficalora said at an investor conference in mid-May. "That consistency over the course of decades has resulted in the people that bring product (loans) to the table knowing that they shouldn't waste their time and shouldn't waste our time bringing something that wouldn't qualify."

In addition, multi-family and commercial real estate loans need approval from the bank's mortgage and/or credit committees. The unique process may seem like an above and beyond measure, but it's indicative of how New York Community does business and a big part of why the commercial lender was able to avoid large disaster during the credit crisis.

Listen to CEO Ficalora in an interview with TheStreet on the uniqueness of its board of directors.

Of the 14 members on its board of directors, the fact that more than one director has the expertise to assess property sites is one of several advantages the $42 billion-asset thrift has in an industry where many troubled banks turned out to have boards composed of directors with little to no specific banking experience.

"What it shows is that the board is very connected to the loan portfolio and an integral part of the underwriting process," says Mark Fitzgibbon, director of research at Sandler O'Neill & Partners. "They know the markets, they know the building owners, they're uniquely suited to be able to render an opinion on the likelihood of getting repaid on the loan. There's no question it's a unique thing."

New York Community is the 22nd largest bank holding company in the United State. It doesn't make residential or consumer loans (referring customers to third-party outlets, such as PHH Corp. (PHH) ), but rather focuses on originating multi-family loans, particularly loans for apartment buildings that are either rent-stabilized or rent-controlled in the metro New York area. Losses tend to be lower on these types of loans because of the steady cash flow from tenants as well as the thrift's own tight underwriting standards.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $111.60 0.00%
FB $94.26 0.00%
GOOG $646.67 0.00%
TSLA $215.58 0.00%
YHOO $32.86 0.00%


Chart of I:DJI
DOW 17,131.86 +47.37 0.28%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,838.6430 +8.1730 0.17%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs