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Why Shares of New York Community Bancorp Are Up Today

By Bram Berkowitz – Jul 28, 2021 at 1:10PM

Key Points

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The bank reported earnings results from the second quarter of the year this morning.

What happened

Shares of New York Community Bancorp (NYCB 1.17%) traded nearly 10% higher as of 12:15 p.m. EDT after the bank reported earnings results for the second quarter of 2021.

So what

New York Community Bancorp, a bank with assets of nearly $58 billion that specializes in multifamily lending, generated diluted earnings per share (EPS) of $0.30 on total revenue of $347 million. EPS hit analysts' average estimate on the number, while revenue beat by nearly 8%.

EPS would have been $0.33 for the quarter if you exclude one-time, non-recurring tax charges and $10 million of expenses related to New York Community Bancorp's planned acquisition of Flagstar Bancorp (FBC), which will bring the combined bank to $87 billion in assets.

Total revenue climbed 5% from the first quarter, while loans grew about 1%. The bank grew its somewhat new commercial and industrial loan portfolio by 57% from the first quarter of the year. Total expenses would have been down, excluding the merger costs.

Blue line with arrow pointing upward, over blue background.

Image source: Getty Images.

Now what

New York Community Bancorp's CEO Thomas Cangemi in a statement called the quarter one of "the Company's best quarterly operating performances in over 15 years."

The bank continues to make progress on shifting from a thrift model with higher-cost funding and fixed-rate multifamily loans to a more traditional commercial banking model. The acquisition of Flagstar will help with this monumental effort. That, coupled with some good momentum in the first quarter, bodes well for the bank.

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Stocks Mentioned

New York Community Bancorp Stock Quote
New York Community Bancorp
NYCB
$8.63 (1.17%) $0.10
Flagstar Bancorp Stock Quote
Flagstar Bancorp
FBC

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