According to NYCB’s projections, the sale will add a substantial 65 basis points to the company’s CET1 capital ratio, bringing it to a pro-forma 10.8% as of March 31, 2024, after accounting for the preferred conversion.
“Consistent with my guidance during our recent earnings call, we are moving forward quickly to implement our strategic plan, which focuses on improving our capital, liquidity and loan-to-deposit metrics,” NYCB chief executive Joseph Otting said in a news release.
The proceeds from the sale will be reinvested into cash and securities. The transaction is also set to favorably impact NYCB’s loan-to-deposit ratio, with the pro-forma loan-to-deposit ratio expected to decline to a healthier 104% – down from 110% at the end of the first quarter of 2024.
While offloading a substantial portion of its mortgage warehouse loans, NYCB said it remains committed to its mortgage business.
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