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New York Community Bank stock price slide The stock continued to rise on Thursday as it faced a possible downgrade from Moody’s after posting an unexpected loss and announcing a dividend cut. NYCB is looking to increase reserves on its balance sheet after last year acquiring some of the assets of Signature Bank, which failed during the local banking crisis.
Moody’s said Wednesday it is considering a downgrade that could put NYCB in “junk” territory after the credit rating agency expressed concern about the bank’s losses on New York offices and apartment buildings.
Moody’s also expressed concern about weak earnings, significant reductions in capital and reliance on wholesale funding.
NYCB stock fell more than 11% in Thursday trading, and has fallen more than 43% over the past five days. Most of the decline occurred on Wednesday and Thursday. NYCB stock, which closed at $5.75 per share at Thursday’s close, is trading at its lowest level since 2000.
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New York Community Bank (NYCB) stock fell more than 11% on Thursday, bringing its decline this week to more than 43%. (Bing Guan/Bloomberg via Getty Images/Getty Images)
NYCB announced this week that it would cut its dividend by 70% as it strengthens its balance sheet with additional capital reserves. This comes after NYCB’s acquisition last year pushed it past the $100 billion asset threshold under which banks are required to comply with stricter capital and liquidity requirements. banking regulations.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| new york cb | NEW YORK COMMUNITY BANCORP INC. | 5.74 | -0.74 | -11.42% |
Last year, NYCB took in $34 billion in deposits, $13 billion in loans and $25 billion in cash from New York. Failed Signature Bank. These acquisitions brought NYCB’s total assets to $116.3 billion, with $85.8 billion in loans and $81.4 billion in deposits, as of Dec. 31.
NYCB CEO Thomas Cangemi On a conference call with analysts on Wednesday, he said the acquisition of Signature Bank “allows us to advance our strategy while strengthening and diversifying our balance sheet. However, we believe we will become a $100 billion-plus bank sooner than expected.” ” he said.
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NYCB cut its dividend and poured more capital into its rainy day fund to generate more cash needed to comply with stricter regulations. (Lev Radin/Pacific Press/LightRocket via Getty Images/Getty Images)
NYCB set aside more capital this quarter to meet regulatory requirements and also put more money into its rainy day fund to cover potential losses, resulting in an adjusted Losses amounted to $185 million.
Founded in 1859, NYCB served as a small regional bank for many years. Between 2000 and 2023, he completed 13 acquisitions and grew to its current size. Additionally, we recently acquired Flagstar Bank and were able to expand our footprint across the country.
Signature Bank’s 2023 failure was the fourth largest in U.S. history. (Leonardo Munoz/VIEWpress/Getty Images)
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last year’s local bank crisis The largest bank failure in U.S. history occurred. First Republic Bank’s failure was second only to Washington Mutual’s failure in 2008 and surpassed Silicon Valley Bank and Signature Bank’s failures in 2023.
Reuters contributed to this report.
