From Dow Jones & Company:

New York Community Bancorp shocked investors by cutting its quarterly dividend and setting aside more money to cover loan losses. The bank’s stock dropped 38% after these announcements. NYCB’s fourth-quarter provision for credit losses came in at $552 million, showing a significant increase compared to the previous quarter. CEO Thomas Cangemi said the bank needs to increase its level of capital due to growing regulatory requirements following its acquisitions of Flagstar Bank and deposits and loans from the failed Signature Bank. Data shows that NYCB’s level of reserves to total loans is below the industry average, sparking concerns.



Read more: Does New York Community Bancorp have another surprise in store for investors?