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NYCB expects reverse stock split to take effect next month

Published 06/27/2024, 08:38 AM
Updated 06/27/2024, 12:10 PM
© Reuters. FILE PHOTO: A screen displays the trading information for New York Community Bancorp on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 31, 2024.  REUTERS/Brendan McDermid/File Photo
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(Reuters) - New York Community Bancorp (NYSE:NYCB)'s one-for-three reverse stock split will become effective mid-to-late July, the regional lender said on Thursday.

The bank's shares are down nearly 71% since the end of January, following a surprise quarterly loss due to commercial real estate stresses and a dividend cut.

An investment from a group that included former U.S. Treasury Secretary Steven Mnuchin's Liberty Strategic Capital stabilized the stock, but trading remains rangebound.

NYCB shares dipped nearly 2% before the bell on Thursday.

© Reuters. FILE PHOTO: A screen displays the trading information for New York Community Bancorp on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 31, 2024.  REUTERS/Brendan McDermid/File Photo

Reverse stock splits typically boost prices by reducing the number of outstanding shares. NYCB first unveiled the plan in March and shareholders ratified it earlier this month.

In a regulatory filing earlier in June, NYCB said the split could make the stock price "more attractive to a broader group of institutional and retail investors."

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