From Nasdaq, Inc.:

New York Community Bancorp Inc.’s shares experienced a significant 22.15% drop during Tuesday’s trading session, reaching lows not seen since April 1997. Following disappointing quarterly results, the bank has lost 38% of its value, resulting in a market cap reducing from $7.45 billion to $3.16 billion over the last week. (50 words)

After acquiring troubled Signature Bank, NYCB’s growth expanded its assets to above $100 billion, subjecting the bank to more stringent regulatory and capital standards. A report by Goldman Sachs highlighted NYCB’s significant exposure to the commercial real estate loan market, with CRE loans constituting about 56% of the bank’s total loans. (50 words)

NYCB’s decision to cut dividends and increase cash reserves reflect pressures from a leading U.S. regulatory body. The bank has set aside $552 million for potential loan losses, leading to a drastic 70% cut in quarterly dividends. Bank of America Global Research maintains a Buy rating on NYCB, with a price target of $8.50. (50 words)

Bank of America remains bullish on NYCB, stating that the fourth quarter marked a confluence of events leading to a worse than expected outcome. Treasury Secretary Janet Yellen expressed concerns about the commercial real estate sector and exposure risks for certain institutions. The SPDR S&P Regional Banking ETF and New York Community Bank saw significant losses. (50 words)



Read more: New York Community Bancorp Plummets To 26-Year Lows On Commercial Real Estate Fears