New York Community Bancorp shares on Friday were 2589%, falling below $4 to close at 3$55 shares, a new 52-week low.
New York Community Bank announced after market hours Thursday that it has appointed Alessandro Dinello, the bank's executive chairman, as president and chief executive. Denello served as CEO of Flagstar Bank, which was acquired by the New York Community Bank in 2022. As the international rating agency Moody's downgraded the credit rating of the New York Community Bank in early February"Junk grade"Later, De Nelo was appointed Executive Chairman of the Bank.
The New York Community Bank also announced revisions to its fourth-quarter results, adding disclosures about its internal risk management. In its filing with the U.S. Securities and Exchange Commission (SEC), the bank said management identified significant weaknesses in the company's internal controls related to internal loan reviews stemming from ineffective oversight, risk assessment and monitoring activities.
Steve Moss, an analyst at investment bank Raymend James, sees the disclosure as a major concern, suggesting that the cost of credit could be higher over the extension period, adding to its concerns about New York Community Bank's interest-only multi-family portfolio. Unless interest rates fall, it will take a long time to resolve.
Ben Emons, head of fixed income at Newedge Wealth, a wealth manager, said the market sees banks trading below $5 at risk of a takeover. Keith Horowitz, an analyst at Citigroup, believes that due to financial uncertainty, even under this **, New York community banks are unlikely to attract buyers and can only rely on themselves.
The risk of loss on bank loans has raised concerns about commercial real estate and broader regional banking conditions. In recent months, New York Community Bank operations and profitability have been under pressure from its commercial real estate exposure. So far this year, the bank's stock price has accumulated **653%, of which on January 31, due to the release of a huge loss of financial reports, once ** nearly 38%.
The New York Community Bank acquired about $38 billion in Signature Bank's assets a year ago.