NYCB says it lost 7% of deposits in the past month, slashes dividend to 1 cent

On Thursday, New York Community Bank revealed a 7% reduction in its deposits during the tumultuous month leading up to the announcement of a capital injection exceeding $1 billion.

This infusion of funds, orchestrated by a group of investors spearheaded by former Treasury Secretary Steven Mnuchin’s Liberty Strategic Capital, provided a critical financial boost.

As of March 5, the bank’s deposits stood at $77.2 billion, a decline from the $83 billion recorded on February 5, just a day prior to Moody’s Investors Service downgrading the bank’s credit ratings to junk status.

In response to its financial challenges, NYCB announced a second reduction in its quarterly dividend this year, dropping it to 1 cent per share from 5 cents, reflecting an 80% decrease.

The bank had previously paid a 17-cent dividend until a surprise fourth-quarter loss triggered a series of negative developments for the Long Island-based institution, CNBC reported.

READ MORE: https://www.cnbc.com/2024/03/07/nycb-lost-7percent-of-deposits-in-past-month-slashes-dividend-to-1-cent.html

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