NYCB Stock Is Falling. The Bank Is Still Trying to Restore Confidence.

Shares of
New York Community Bancorp
were falling Friday after dropping 6.5% on Thursday. The regional lender is still trying to get back on track.

The shares retreated 3.3% at the market open to $4.05. Coming into the session, the stock is down almost 60% since the start of year, beaten down by a big write-down on commercial-real-estate loans, and a hefty dividend cut. It’s trading at its lowest since 1997.

The lender’s problems are raising concerns about the regional banking sector. The SPDR S&P Regional Banking ETF was down 0.6%.
Citizens Financial Group
stock fell 0.8%, shares of
Zions Bancorp
were down 0.1%, while
Regions Financial
stock lost 0.5%.

NYCB is still trying to regain investors’ confidence after its disastrous earnings report Jan. 31. This week NYCB put Chairman Alessandro DiNello in charge of the bank, and said it has ample liquidity.

Investor Thomas Kahn on Thursday said regulators are partly to blame for the bank’s current predicament. A spokesperson for the Office of the Comptroller of the Currency said the agency doesn’t comment on specific banks or supervisory activities.

Write to Brian Swint at [email protected]

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