New York Community Bancorp upgraded to Buy at DA Davidson on Signature deal

As previously reported, DA Davidson upgraded New York Community Bancorp to Buy from Neutral with an unchanged price target of $11.50. In its acquisition of certain assets and liabilities from Signature Bridge Bank, the company is accelerating its transformation to a more commercial bank like structure by lowering the loan to deposit ratio to under 100% and increasing C&I loans, while also reducing its concentration in multifamily loans, the analyst tells investors in a research note. The deal also offers significant funding advantages in lowering deposit costs with an increase in non-interest bearing deposits and significant cash, which will be used to pay down some high-cost borrowings, the firm added.