Morningstar Rating

Stock Research and Analysis

by Stephen Ellis

Bulls Say

Pristine asset quality means management won't be distracted in building the lending businesses.
The bank has protected itself by instituting prepayment penalties on borrowers who decide to refinance early, which has helped maintain net interest margins.
NYCB is one of the most efficient operators in our coverage universe, with an efficiency ratio of about 43%. Read more 

Bears Say

Costs on longer term borrowings are hampering any expansion of net interest margin given their long-dated and voluminous nature.
A high dividend payout limits capital growth for expansion, either internally or through acquisition.
The bank's acquisition appetite leaves it vulnerable to overpaying for acquisitions that are harmful to existing shareholder value. Read more 

Management

We think NYCB's stewardship of shareholders' capital is standard. Joseph Ficalora has served as president and CEO since 1993, after serving the bank as COO since October 1989. We were pleased to see that Ficalora relinquished his chairmanship in the   Read more 

Profile

With over $40 billion in assets, New York Community Bancorp is the second-largest operating public thrift. With 273 branches in seven divisional banks operating in five   Read more 

3 Banking Takeaways From the Quarter 
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