The latest quarter for bank stock New York Community Bancorp (NYSE:NYCB) was called “transformational” by some as the company became a commercial bank this quarter. The results of that move were impressive by any standards, especially as its earnings report declared. Investors were abundantly pleased with the results as well, sending New York Community Bancorp shares up over 13% at the time of writing.
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This quarter was a big step for the bank, which took over some of Signature Bank’s assets and liabilities. It was also the first full quarter of Flagstar operations, as it only had one month’s worth of Flagstar operations back in the fourth quarter of 2022. But the earnings themselves fared quite well, coming in at $0.23 per share against analyst expectations calling for $0.21. Net interest income also came in ahead of expectations at $555 million against the $523.4 million predicted.
Total revenue perhaps proved the biggest win of all at $2.65 billion. That was not only up 360% quarter-over-quarter, but it was also up 667% year-over-year. Yet there were some unusual points to consider that suggest this quarter may be a flash in the pan. The bank’s insiders sold off $1.3 million in stock in March. However, a look at the last three months of insider trading notes that, collectively, insiders bought a total of $761,100 in stock.
Nevertheless, New York Community Bancorp enjoys a lot of analyst support. With 12 Buy ratings and three Holds, New York Community Bancorp stock is considered a Strong Buy. Further, with an average price target of $10.93, NYCB offers 4.79% upside potential.
