(Reuters) – New York Community Bank (NASDAQ:) said on Monday it has closed a $1 billion capital infusion that was agreed upon last week with a group of investors and plans to reverse split its common stock in a ratio of one by three. shareholders.
Joseph Oetting, a former comptroller of the currency in the Donald Trump administration, was named NYCB’s chief executive last week as part of a $1 billion capital injection from a group of investors that included former US Treasury Secretary Steven Mnuchin.
The bank said Monday it added Oetting, Mnuchin, Milton Berlinsky and Allen Puwalsky as new board directors while reducing the size of the board to 10 members.
NYCB shares rose 5.8% to $3.44 in extended trading Monday.
The lender said last week it was seeing interest from non-bank bidders for some of its loans and would present a new business plan in April after the bank cut its dividend again and reported deposits fell 7%.
A surprise quarterly loss and a 70% dividend cut in January hit NYCB shares, which came under pressure again in late February after the company said it had discovered a “material weakness” in internal controls and revised its loss to 10 times higher. than before. for goodwill impairment charges.
Investment firms Hudson (NYSE:) Bay Capital, Reverence Capital Partners, Citadel Global Equities, certain institutional investors and certain members of NYCB management last week agreed to participate in the equity investment.
NYCB said it plans to raise funds through shares and warrants, with investors owning about 39.6% of the company on a fully diluted basis following its latest fundraising.
Some Wall Street analysts have expressed concern that the lender’s turnaround will likely take a long time as earnings remain under pressure from its efforts to increase provisions for potentially bad loans in its commercial real estate portfolio.