Penn Fed has terrible margins (similar to NYB) and is fairly leveraged with wholesale funding (also simlar to NYB). The both seem to suffer from the same problems. An increasing cost of funds with not much happening on the loan side to offset the incrrease in interest expenses. Penn Fed is primarily a 1-4 Residential lender. Look for NYB to sell all those loans, reduce borrowings, and take the opportunity to reposition the balance sheet -- again. In the short run I think this is a good move. Managaement will have the opportunity to improve margins. I like the additonal branches in NJ. I beleive it will be well received. Stock should reamin here until they execute.
Well...if it follows everything else Fic has done for the past 3 years, there will be only one direction that this can go. This answer is just as intelligent as Fic's refusal to grow organicaly...witness Atlantic bank and all the other deals they made: NOTHING seems to help.
Mr. Ficolora is desperately trying to "cosmetically dress up" this company without much success. The stock continues to descend. Solution is for to admit the model failure. The div is just a bone that's not that appealing any more. Sorry guys, NYB will not return to 36 level again. Mr. Ficolara's compensation is certainly not aligned with the shareholders as he continues to swell his shares.