Here's Why Shares of New York Community Bank Dropped 26% Last Month
New York Community Bank (NYSE: NYCB) endured an alarmingly poor quarterly earnings report, a credit rating downgrade, a significant dividend reduction, and serious accounting issues in February. These factors caused the stock to tumble 26% in during the month, according to data provided by S&P Global Market Intelligence.
New York Community Bank published disappointing fourth-quarter earnings on Jan. 31. The bank reported a larger-than-expected net loss, and it announced that it would be slashing its quarterly dividend from $0.17 to $0.05 per share. That sort of news tends to hurt any stock's price, but investors are worried that conditions will deteriorate further for the regional bank.
NYCB is struggling with a few major headwinds. The Federal Reserve's interest rate hikes have driven increased expenses for banks paying interest to depositors. Meanwhile, weak demand for loans is preventing many banks from offsetting their increased interest costs with new loans bearing higher rates. That's a sector-wide issue that NYCB can't escape.
Source Fool.com
