(Reuters) -New York Community Bancorp (NASDAQ:) cut its dividend last week and recorded a surprise quarterly loss on the hit from the beleaguered commercial real estate (CRE) sector, reviving fears about the health of regional banks that have similar exposure.
The dividend cut, which was meant to bolster capital to meet stricter regulation after NYCB’s assets crossed $100 billion, prompted a series of downgrades and sparked an over 60% drop in shares since then.
In a bid to revive investor confidence in the bank, its top executives, including newly appointed Executive Chairman Alessandro DiNello, disclosed they had bought shares together worth more than $850,000.
Here is a timeline of key events surrounding NYCB:
Date Development
March NYCB subsidiary Flagstar Bank enters agreement with
19, 2023 U.S. regulators to buy deposits and loans from
failed lender Signature Bank (OTC:).
Jan. 31, NYCB shares slump 37.7% after the lender slashed
2024 its dividend by 70% and posted a surprise loss for
the fourth quarter, pressured by stress in its CRE
portfolio.
Moody’s (NYSE:) places all long-term and short-term ratings
as well as assessments of NYCB and its subsidiary
Flagstar Bank on review for a downgrade.
Feb. 1, NYCB shares tumble another 11.1%, dragging down
2024 U.S. regional bank stocks amid a frenzied selling
in banking shares. Bank says it believes stock
price will recover as the market sees “value
enhancing actions” being taken.
Feb. 2, The bank’s shares enjoy a reprieve, inching up 5%
2024 after sinking 45% in the past two sessions. After
market close, Fitch downgrades long-term issuer
default ratings for NYCB and its subsidiary
Flagstar Bank.
Feb. 5, Shares of NYCB resume their descent. NYCB confirms
2024 its chief risk officer Nick Munson had left the
company after a report from the Financial Times.
Feb. 6, U.S. Treasury Secretary Janet Yellen tells a House
2024 Financial Services Committee hearing that she was
concerned about looming CRE stresses on banks, but
believed the situation is manageable with
assistance from banking regulators.
Shareholders file a class action suit accusing the
regional bank of defrauding them by failing to
disclose that it would set aside more money for
credit losses.
Moody’s downgrades all long-term and some
short-term issuer ratings of NYCB as well as
assessments of its subsidiary Flagstar Bank to junk
and warned of further downgrades.
NYCB says total deposits rose slightly to $83
billion as of Feb 5. compared to $81.4 billion at
the end of 2023. Adds that it is in the process of
bringing in a new chief risk officer and chief
audit executive.
Feb. 7, Analysts express concerns about “governance risks”,
2024 citing the bank’s choice to not disclose the
departure of key executives earlier, but cheer the
strong liquidity position.
NYCB names banking veteran Alessandro DiNello as
its executive chairman and vowed to cut down the
lender’s exposure to the troubled CRE segment.
Feb. 8, Morningstar DBRS
2024 downgrades
NYCB’s credit rating to “BBB” from
“BBB (high),” citing the lender’s “outsized”
exposure to commercial real estate loans compared
to its peers.
Feb. 9, Top executives of the bank including newly
2024 appointed Executive Chairman Alessandro DiNello and
CEO Thomas Cangemi disclose they bought stakes in
NYCB, helping its stock rally.
Sources: Company statements, conference call, media reports
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