New York Community Bancorp Completes More Than $1 Bln Equity Investment

(RTTNews) - New York Community Bancorp Inc. (NYCB) announced it completed transactions resulting in individual investments aggregating to approximately $1.05 billion in the company by Liberty Strategic Capital, funds managed by Hudson Bay Capital Management, funds managed by Reverence Capital Partners, and other investors.

In connection with the transactions, the Board has been reduced to ten members and the company has added four new directors to the Board: Former Secretary Steven Mnuchin, former Comptroller of the Currency Joseph Otting; Milton Berlinski, Managing Partner of Reverence Capital; and Allen Puwalski, at the recommendation of Hudson Bay. DiNello, Marshall Lux, Lawrence Savarese, Peter Schoels, David Treadwell and Jennifer Whip remain members of the Board.

NYCB also has announced the grant of employment inducement awards to Joseph Otting in connection with the commencement of his employment with NYCB, which became effective as of March 6, 2024.

The inducement award consists of an option to acquire 15 million shares of the Company's common stock, with an exercise price of $2.00 per share, and vesting in 12 quarterly installments commencing on March 6, 2024, with accelerated vesting upon a change in control of the Company prior to the final vesting date.

Last month, New York Community Bancorp disclosed in a regulatory filing that it identified material weaknesses in its internal controls related to internal loan review, resulting from ineffective oversight, risk assessment and monitoring activities, NYCB said in a filing with the U.S. Securities and Exchange Commission.

The company determined that Generally Accepted Accounting Principles required a "goodwill impairment" charge on the company's "Consolidated Statements of Income and Comprehensive Income" for the quarter and fiscal year ended December 31, 2023, resulting in a $2.4 billion decrease to the fourth quarter and annual net (loss) income available to common stockholders.