(Reuters) – New York Community Bancorp’s one-for-three reverse stock split will become effective mid-to-late July, the regional lender said on Thursday.
The bank’s shares are down nearly 71% since the end of January, following a surprise quarterly loss due to commercial real estate stresses and a dividend cut.
An investment from a group that included former U.S. Treasury Secretary Steven Mnuchin’s Liberty Strategic Capital stabilized the stock, but trading remains rangebound.
NYCB shares dipped nearly 2% before the bell on Thursday.
Reverse stock splits typically boost prices by reducing the number of outstanding shares. NYCB first unveiled the plan in March and shareholders ratified it earlier this month.
In a regulatory filing earlier in June, NYCB said the split could make the stock price “more attractive to a broader group of institutional and retail investors.”
(Reporting by Niket Nishant in Bengaluru; Editing by Saumyadeb Chakrabarty and Sriraj Kalluvila)
