One of the weaknesses of NYCB was the low % of deposits which are a cheap source of funds(take a look at what you get at the bank) and they are addressing that as a priority - and they are performing on their promise.
The divi still represents a high % of their earnings - but in cash flow terms not terrible which tells me that we will not be getting an increase in the near term future. However the existing divi seems solid so it portends a
real return of 6 plus %.
Included in the year-end 2013 balances of NOW and money market accounts, CDs, and non-interest-bearing accounts were brokered deposits of $3.6 billion, $212.1 million, and $260.5 million, as compared to $3.7 billion, $793.8 million, and $189.2 million, respectively, at December 31, 2012.
Not that this bad as the cost of the brokered deposits may be cheaper but would like to see how this number changes in the next filing.
pg - it was a priority of the bank to try and increase the amount of deposits. Maybe they gave a way a bunch of "toasters"? From the filing I believe you will see in the K results to reflect what was said in the report. The attempt at increasing deposits probably has not stopped. I am going to do a little research as some of their banks to see what the programs are.
No- it is ok to use customer deposits to lend for mortgages based on presently strict requirements. Most other similar banks have a much higher % of deposits and get a larger spread on their mortgages.