New York Community equity deal adds ‘considerable dilution,’ says Deutsche Bank

Deutsche Bank says that while New York Community Bancorp’s $1B of equity deal adds “considerable dilution” which includes a series of warrants, investors have been looking for an outside capital raise to sure up the balance sheet and to improve sentiment on the stock. The capital infusion should be enough to cover any potential reserve increases, the analyst tells investors in a research note. However, the firm sees a number of questions remain regarding strategy under new management, additional deal terms and any information on deposit flows.