New York Community Bancorp Stock Plummets After Surprise Loss and Dividend Cut
New York Community Bancorp's stock plummeted 37% after reporting a surprise loss, increasing reserves, and signaling trouble in the office-space sector with two troubled loans. The bank also announced a more than two-thirds dividend cut to meet regulatory requirements as a larger Category IV bank. The fourth-quarter loss was $260 million, with adjusted earnings per share at 27 cents, missing estimates. The bank's net interest income and revenue also fell short of analyst expectations. The stock's largest one-day percentage drop in history reflects concerns about credit risk and capital building, following the acquisition of Signature Bank and Flagstar Bank.