Why New York Community Bancorp Stock Is Falling Yet Again
Shares of New York Community Bancorp (NYSE: NYCB) have been caught in a downward spiral since the bank's Jan. 31 earnings report as investor anxiety continues to grow. The stock traded down as much as 14.3% on Wednesday before recovering slightly but remained down 7% as of 1 p.m. ET.
Confidence is king in banking, and investor confidence in New York Community has never been lower. The bank went on an ambitious growth campaign in 2023, first acquiring Flagstar Bank to round out its commercial banking capabilities and then buying assets and liabilities of the failed Signature Bank from the Federal Deposit Insurance Corp.
Investors learned the consequences of those moves when the bank announced fourth-quarter results. New York Community reported a surprise loss and announced plans to slash its dividend and take other steps to build capital. Part of the push is related to regulatory requirements triggered by New York Community's larger size. However, in the days that have followed, other reasons for concern have surfaced.
Source Fool.com
