NYCB closes $1B capital infusion deal


REUTERS/Mike Segar/File photo

New York Community Bancorp announced on Monday that it has completed a $1 billion capital investment agreement with a group of investors, a deal that was finalized last week. Additionally, the bank intends to propose a one-for-three reverse stock split of its common shares to its shareholders.

Joseph Otting, who served as the Comptroller of the Currency during the Trump administration, was appointed as the chief executive of NYCB last week. This appointment coincided with the capital boost of $1 billion from an investment consortium, which includes former U.S. Treasury Secretary Steven Mnuchin.

Last week, the lender announced it had attracted interest from non-bank entities for a portion of its loan portfolio and disclosed plans to unveil a new business strategy in April. This announcement came after the bank reduced its dividend once more and revealed a 7 percent decrease in deposits.

In extended trading, shares of NYCB have risen by 5.8 percent, reaching $3.44.

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