So let me understand this. NYB has been gobbling up other banks for several years now. It has grown from a being a dot on the map to a $42 billion asset banking concern. So is NYB going to discard future growth plans for the sake of avoiding reaching the $50 billion threshold mark that will put them under scrunity via the Dodd-Frank Act with potential restriction on paying cash dividends? Does that make logical sense? If the $1.00 dividend is secure this would seem like a great long term investment. But the aforementioned seems to put a monkey wrench on the future of the cash dividend. I find it difficult to believe that they will change their growth history to protect the dividend. Addition by subtraction?
I don't know the specifics of Dodd-Frank as it relates to restrictions on 'too big to fail' banks, but the general idea is to prevent the large banks from doing things that can hurt their capital position and put the US Gov't at risk for having to bail them out.
If a bank is in a weak position insofar as its tier 1 capital is concerned, an argument can be made that it needs to use whatever profits it makes to shore up its capital base rather than doling it out to its shareholders in the form of a dividend. Now, as far as I know, NYB is in relatively good position vis-a-vis its tier 1 capital vs. regulatory requirements, so it shouldn't be at risk of such controls even if it grew to $50 billion in assets, but theoretically it could happen in the future.
Joe said that they would wait until last deal was fully integrated so it does seem about time for some more acquisitions. Only said that they wanted a good deal for shareholders. If a good deal for NYB comes along Joe will do it.
So if they gobble up lets say a bank with $11 billion or more in assets they would enter a threshold that could put the current dividend payout in serious jeperady; especially when you factor in that EPS is barely covering the dividend. I bought this stock basically for the great dividend; it was the overriding reason for buying NYB. I'm hoping they remain non buyers of other banks for quite some time.