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 Bancorp: M&A Rumor Winner

NEW YORK ( TheStreet) -- New York Community Bancorp (NYCB - Get Report) was the sector winner on a mostly down Tuesday for bank stocks, with shares rising 1% to close at $13.97.

The company has been holding discussions to acquire OneWest Bank of Pasadena, Calif., according to a Reuters report that cites three unnamed sources.

OneWest Bank is the former IndyMac Bank, which failed in July 2008 and was then run under FDIC conservatorship until being sold to private equity investors in March 2009.

M&A speculation drove an upgrade of New York Community Bancorp's shares to an "outperform" rating from a "market perform" rating on March 6 by KBW analyst Collyn Gilbert.

In a report, the analyst said "an acquisition for NYCB could prove to be a positive catalyst for the shares," and among several possible targets, Gilbert said "we tend to think OneWest could be the most suitable."

OneWest's mortgage-focused business model is similar to that of the failed AmTrust Bank of Cleveland, which New York Community Bancorp purchased from the Federal Deposit Insurance Corp. in December 2009. In addition to the similarity with AmTrust, Gilbert said OneWest was a likely candidate because of "limited competition among other potential buyers."

New York Community Bancorp had $44.1 billion in total assets as of Dec. 31, while OneWest had $25.9 billion in total assets. A combination of the two banks would be a major transformation for New York Community, bringing it well above the $50 billion size for a "systemically important financial institution," (SIFI) in the eyes of regulators.

New York Community CEO Joseph Ficalora at a conference on March 4 said the company was "actively working toward getting regulatory approval so as to be a [SIFI] bank -- a bigger bank." He added that "it is our intent to do whatever the necessary work is to get that approval because, in the environment ahead, there will be opportunities to create great value for shareholders by doing, at least in our case, first a large deal and then whatever other deals we need to do."
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
C $51.06 0.00%
NYCB $18.41 0.00%
AAPL $111.31 0.00%
FB $92.80 0.00%
GOOG $645.44 0.00%


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs