NYCB Announces $1 Billion Capital Infusion Deal and Reverse Stock Split

New York Community Bancorp has closed a $1 billion capital infusion deal with an investor group, including former U.S. Treasury Secretary Steven Mnuchin, and plans to implement a one-for-three reverse stock split of its common stock. The bank has appointed Joseph Otting as its chief executive and added new directors to its board. NYCB's shares rose 5.8% in extended trading following the announcement. The bank aims to raise funds through stocks and warrants, with investors expected to own about 39.6% of the company on a fully-diluted basis. Despite concerns from Wall Street analysts about the bank's turnaround timeline, NYCB plans to outline a new business plan in April after experiencing a surprise quarterly loss and a 70% reduction in its dividend.