New York Community Bancorp, Inc. (NYSE:NYCB) is currently selling for around $13.50 offering a $0.17 quarterly dividend; a 5% yield. If one is considering putting money in a bank, instead of depositing it in a bank, one can get a better yield by purchasing shares of NYCB.
NYCB was established in 1859 as New York Community Bank, a New York State chartered savings bank. It has grown into one of the largest bank holding companies in the U.S. with deposits of $28.9 billion and 255 branches located in New York, New Jersey, Florida and Ohio. At the end of December it held a $27 billion portfolio of multi-family loans in New York City. A majority of its loans are collateralized by multi-family buildings in New York City and 88% of them are in rent-regulated buildings. The company maintains that these buildings are more likely to retain their tenants and therefore their revenue streams continue to hold up in recessionary cycles. These loans are also less costly to produce and maintain than other types of loans. NYCB produced a chart that shows its superior loan loss performance compared to other banks and thrifts:
