All long term NYB shareholders know from past experience that this management will only make an acquisition if the transaction will be immediately accretive. This is the strategy that they have adhered to for last few takeovers and it has proven very profitable for the company.
The current state of affairs in the banking industry has put many potential acquisitions in the crosshairs of this management and you can bet your last nickel that they won't let this opportunity pass by without pulling the trigger.
I also feel that this next deal will be a big one, again due to the sorry condition of many fairly big sized banks that are in serious trouble.
It is my opinion that this will come to pass soon.
From the latest troubled bank list here are the New York banks that are listed along with their assets in millions $(000)
Golden First Bank 23,482
Marathon National Bank of NY 840,947
Metropolitan National Bank 588,712
Savoy Bank 56,969
Sunnyside FS & LA Irvington 110,676
Park Avenue Bank 535,362
USA Bank 226,853
Most of these banks have received a cease and desist from the FDIC. I don't know the local market there in NY other than NYB, but these look like they may be local candidates for NYB via the FDIC.
Thought some of the posters might be interested to see the current list.
I live in Nassau County and am not familiar with any of the listed banks but I think their asset base is much too small to have any positive affect on NYB's per share earnings.
No, I firmly believe the coming NYB acquisition is going to
be a much larger, familiar name and one that will definitely enhance NYB's bottom line immediately. The reason why NYB has not as yet concluded a deal is because the current bank crisis has presented so many attractive possibilities that management wants to do their most careful due diligence to effect the most profitable deal. This will happen soon, count on it.
I was interested to see the list of troubled banks and I thank you for sharing. In listening to CEO Ficalora speak, the last 5 years, on either quarterly conference calls or in investor presentations, he "hammers home" the fact, that NYB is looking to acquire banks because of the prospective bank's deposit base and NOT their assets. NYB looks to acquire banks, on the cheap, that have a good deposit base and for which NYB can "get rid of" (sell off) the assets to someone else. Along these lines, the other prerequisite that NYB makes, contingent on a deal, is that the acquisition has to be immediately accretive to NYB's earnings.
So... "my take," on any deal is that NYB is more concerned with the amount of deposits that you could potentially acquire than the amount of assets that they would acquire. In a perfect world, they would want to acquire a bank with all deposits and very little assets to dispose of. However, the scenario that I outline (for the ideal acquisition target) would probably not exist, because any bank in "that" situation would probably be doing well, on their own, and not need to get bought out or acquired.
Thanks again for sharing your thoughts and for providing some of the banks in need of assistance.
I agree with most of your post. However, if Mr. Ficalora wants immediate accretion, he should opt for Dime Savings Bank of Williamsburgh. He has shown a lack of appetite for an out of footprint acquisition or an FDIC assisted transaction that in theory would be immediately accretive. Recall with me if you would the building of NYCB. A small Queens moribund S&L purchased Columbia FSB and then RCBK and then RSLN and the lists goes on. None of them to my knowledge were FDIC assisted. I think Mr. Ficalora is shrewd old time banker welded to the bottom line who knows the local market and is wed to it. That why a deal with the Dime under the current circumstances would make sense. Plus this deal is out of footprint since it takes in central Brooklyn, parts of LI and a stable mortgage portfolio.