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New York Community Bancorp Inc. Message Board

  • bankman_retired bankman_retired Jul 2, 2000 11:00 PM Flag

    WHY the congrats KID1 ??????

    This bank has always been the bridesmaid and
    finally they are the bride. The problem is they married
    the girl with a loose reputation. I am concerned that
    their first acquisition is filled with ???? about the
    supermarket branches . This bank's success has been based
    upon a FOCUSED strategy and now that is in jeapordy
    with this deal. Why couldn't they strike a deal with
    FFIC which makes a lot more sense than this one. They
    are buying a troubled bank for crying out loud. I
    guess management has a lot of guts to do this one.
    Thank god I don't own this stoxck.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • I have seen a few examples of nearly 2-year
      periods for conversion eligibility. But AMFH is the only
      one coming to mind at the moment.

      As for the
      deals themselves, the public demand on the national
      level has pretty much mirrored the local action. Of
      course, there have been very few local deals in the last
      2 years. And as we know, NY, NJ, CT, MA and PA are
      target rich.

      Let's hope QCSB continues to gain.
      However, the dividend has not been increased lately. The
      bank needs more sponsorship on Wall Street.

    • I've been a devoted thrift buyer for more than a
      decade. However, I've generally ignored the
      mutual-holding company issues because their performance never
      matched the fully-converted thrifts. With almost all
      thrift stocks down over the last two years, there was no
      reason to buy into thrifts with limited shareholder
      rights. However, maybe other mutual holding company
      managements will learn and follow the path of RSBI.

      I
      have not wanted a conversion at Provident before now
      because the aging period for eligible depositors has
      grown continuously longer. Two years seems to have
      become standard. I've been shut out of several for
      missing the depositor deadline.

      With regard to
      other potential conversions, I am into a bunch around
      the country.

    • Speaking as a former HAVN shareholder that got
      severely burned by the Supermarket Banking Strategy
      employed by HAVN management the last five years, I must
      warn QCSB shareholders to brace
      themselves.

      About 4 years ago, HAVN shares were trading at a high
      of $29 per share. Then the Earnings drain known as
      supermarket banking was firmly put in place dragging the
      price per share down to $9 at its worst. The fact is,
      the PPS never made it above $20 after the in-store
      branches began opening.

      "bankman retired" makes a
      very legitimate point that the QCSB is buying a
      troubled bank. However, this assessment is a serious
      understatement. The problems facing the supermarket branches are
      many and severe, the most serious being the
      operational losses that have plagued these branches from day
      one. These losses have historically averaged
      approximately $100,000.00 per month for the last three years.
      That comes to over a million dollars a year.


      If you take a look at HAVN annual reports over the
      last three years you will find that despite vigorous
      efforts to cut expenses in the supermarkets, the expense
      to earnings ratio was consistently at least 3:1.
      That trend continues.

      HAVN triumphantly
      reported that the in-store division as a whole was
      profitable this year contributing $600,000.00 overall to the
      Bank's profitability. Give me a break. The fact of the
      matter is that the vast majority of these branches have
      never been and never will be profitable. So on average,
      each branch earned about $10,000.00 last year. That
      comes to about $27.00 per day.

      Not a very good
      return on a multi, multi, multi million dollar
      investment if you ask me.

      You have a bank that has
      never done an acquisition, taking over a bank that by
      all analyst accounts is one of the most financially
      troubled most poorly managed thrifts in the industry.
      Sounds to me like a recipe for disaster.

      I fear
      QCSB shareholders are about to embark on the long road
      of frustration previously traveled by HAVN
      shareholders. Good luck!

      • 1 Reply to cfswhatajoke
      • supermarket branches that caused the problems
        with CFS. CFS blew a golden opportunity when they
        acquired the Intercounty branches. CFS staff, in charge of
        mortgage origination, lacked the knowledge of government
        mortgage loan production needed to keep those offices
        profitable. Everything that went wrong internally was blamed
        on the "poor acquisition". If someone at the head of
        the helm would have owned up to their ignorance of
        FHA and VA lending and called in an expert, CFS would
        be much better off today. Historically, when the
        overall mortgage market is in a slump, FHA picks up.


        As for the QCSB merger, considering QCSB is a
        similar operation as the old Columbia Federal Savings
        Bank, maybe there is someone at the top, capable of
        recognizing the lack of ability of the "hoochiemamas", get
        rid of them and start restoring some dignity to the
        name of CFS Bank.

 
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