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

Quick Take: Banking on NY Community Bankcorp

NEW YORK ( TheStreet) -- What's the key for staying in the banking business? Easy -- take lower risks, says Joe Ficalora, CEO of New York Community Bancorp (NYCB - Get Report). He spoke to TheStreet's Debra Borchardt about the bank.

The bank has been around for more than 150 years but has only been public for the last 20. It's impressive that the company has made it through both the Great Depression and the Great Recession.

Ficalora says it all boils down to risk management.

"We're a very risk-averse company," Ficalora said. It's one of the most active lenders on rent-regulated housing. Unlike many other banks that were going out of business because of the decimated housing market, New York Community Bancorp actually lost very little money, he pointed out.

In fact, the bank turned down nearly $600 million in government TARP funding, simply because it didn't need it. He added that the bank probably turned down more money than anyone else in the country.

The firm has gone from one bank in 1859 to 274 today, and Ficalora doesn't plan to slow down anytime soon. He added that the company has been looking to grow through acquisitions, and that is one of the main reasons why it went public.

He added the bank is in a unique position to maximize shareholder benefits during stressful times because of its limited risk exposure.

When asked about the key to success, the community bank executive told Borchardt, "The customer who deposits money in a bank is not creating risk. The customer who borrows money from a bank creates meaningful risks."

Meaning that banks go out of business because of the assets, not the liabilities. He concluded that the firm has longstanding relationships with families that have assets on which the bank is comfortable lending.

-- Written by Bret Kenwell in Petoskey, Mich. .

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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
NYCB $16.16 0.00%
AAPL $117.81 0.00%
FB $105.45 0.00%
GOOG $750.26 0.00%
TSLA $231.61 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs