New York Community Bank shares traded nearly 38% on Jan. 31. After the U.S. banking crisis erupted last year, the New York Community Bank acquired some of the assets and liabilities of Signature Bank.
Before the New York Community Bank's stock price plummeted on the day, its latest financial report showed a loss in the fourth quarter of 2023, cutting shareholder dividends to replenish capital.
According to the financial report, the New York Community Bank lost 2$5.2 billion. The bank made a profit of 1$7.2 billion.
New York Community Bank shares closed at 6.5 per share on January 31**$47, a record low.
New York Community Bank.
Thomas Kanjamie, CEO of New York Community Bank, said that after acquiring some of Signature Bank's assets and liabilities, New York Community Bank has been adjusting to regulatory requirements for large banks. Upon completion of the acquisition, the bank's total assets will exceed the regulatory threshold of US$100 billion, subject to stricter capital and liquidity requirements.
"We have taken decisive action to replenish our capital, strengthen our balance sheet and strengthen our risk management procedures to better align ourselves with other banks of comparable size," Kanjemi said. ”
The New York Community Bank announced in March last year that it had acquired about $38 billion in Signature Bank's assets through its subsidiary Flagstar Bank, including about $25 billion in cash and about $13 billion in loans. It also assumed approximately $36 billion of Signature Bank liabilities, including approximately $34 billion in deposits and approximately $2 billion in other liabilities. At the end of 2022, Signature Bank's total deposits and total assets were $88.6 billion and $110.4 billion, respectively.
Wall Street** reported that the "thunderstorm" performance of community banks in New York reminded some investors of the U.S. banking crisis that occurred in early 2023. Silicon Valley Bank and First Republic Bank both closed their doors within weeks, triggering a crisis of trust among depositors and investors in regional banks.
The SPDR S&P Regional Banks Exchange** (ETF) and the KBW Nasdaq Regional Banks Index averaged about 6% on Jan. 31. The US 10-year Treasury yield retreated to its lowest level in weeks.