Current:Home > FinanceNew York Community Bancorp tries to reassure investors, but its stock falls again -FundPrime
New York Community Bancorp tries to reassure investors, but its stock falls again
View
Date:2025-04-13 21:05:06
NEW YORK (AP) — Shares of New York Community Bancorp fell another 10.5% Wednesday after the bank’s credit rating got downgraded to “junk” and investors worried the regional lender could suffer the same fate Silicon Valley Bank did last year.
NYCB’s shares have been in a steep decline since last week, after the bank reported significant losses on some commercial real estate loans and indicated it was struggling to digest last year’s purchase of Signature Bank. The stock lost about 40% on the day the bank released its quarterly earnings report.
NYCB bought most of the assets of Signature Bank last year when Signature failed right after Silicon Valley Bank in mid-March. The purchase of Signature made NYCB a much larger bank by assets, which by law puts it under more pressure from regulators. The bank had to cut its dividend and increase its capital and liquidity ratios to meet regulators’ requirements.
There have also been concerns about NYCB’s commercial real estate portfolio. The bank reported a surprise loss of $252 million for the fourth quarter, including a provision for credit losses of $552 million, much of it tied to real estate.
Shares plunged another 22% Tuesday. After the market closed, the ratings agency Moody’s downgraded the bank’s credit rating to junk status. NYCB then issued a press release saying that 72% of its deposits are insured and that it has liquidity of $37.3 billion, which exceeds uninsured deposits, or those above $250,000.
“Despite the Moody’s ratings downgrade, our deposit ratings from Moody’s, Fitch and DBRS remain investment grade,” said bank CEO Thomas Cangemi. “The Moody’s downgrade is not expected to have a material impact on our contractual arrangements.”
Still, the stock resumed falling after the opening bell Wednesday morning. The spread to other banks has been limited so far. The KBW Nasdaq regional banking index is down 0.8% for the day and around 6% since NYCB reported earnings.
veryGood! (48)
Related
- Federal appeals court upholds $14.25 million fine against Exxon for pollution in Texas
- Body of famed Tennessee sheriff's wife exhumed 57 years after her cold case murder
- What to know about the Lombardi Trophy, which is awarded to Super Bowl winner
- You'll Feel Like Jennifer Aniston's Best Friend With These 50 Secrets About the Actress
- Tarte Shape Tape Concealer Sells Once Every 4 Seconds: Get 50% Off Before It's Gone
- MLB offseason awards: Best signings, biggest surprises | Nightengale's Notebook
- Drop Everything Now and See Taylor Swift Cheer on Travis Kelce at Super Bowl 2024
- Spoilers! Diablo Cody explains that 'Lisa Frankenstein' ending (and her alternate finale)
- What do we know about the mysterious drones reported flying over New Jersey?
- Wu-Tang Clan opens Las Vegas residency with vigor to spread 'hip-hop culture worldwide'
Ranking
- Federal appeals court upholds $14.25 million fine against Exxon for pollution in Texas
- Christopher Nolan, Celine Song, AP’s Mstyslav Chernov win at Directors Guild Awards
- Watch: Danny DeVito, Arnold Schwarzenegger reunite in State Farm Super Bowl commercial
- First lady questions whether special counsel referenced son’s death to score political points
- The 401(k) millionaires club keeps growing. We'll tell you how to join.
- Driver sentenced to 25 years in deaths during New Jersey pop-up car rally
- For Las Vegas, a city accustomed to glitz, Super Bowl brings new kind of star power
- 'Lisa Frankenstein' struggles to electrify box office on a sleepy Super Bowl weekend
Recommendation
The Grammy nominee you need to hear: Esperanza Spalding
Can the NABJ get the NFL to diversify its media hiring practices? The likely answer is no.
Driver sentenced to 25 years in deaths during New Jersey pop-up car rally
Jessica Capshaw Returning to Grey's Anatomy for Season 20
Juan Soto to be introduced by Mets at Citi Field after striking record $765 million, 15
Nicaragua’s crackdown on Catholic Church spreads fear among the faithful, there and in exile
It's happening! Taylor Swift arrives at Super Bowl 58 to support boyfriend Travis Kelce
Taylor Swift's Super Bowl Squad Includes Blake Lively and Ice Spice