Regional Bank Stocks Slide Further After New York Community Bancorp Challenges
By Will Feuer
Regional bank stocks traded broadly lower for a second day as investors continued to digest challenges at New York Community Bancorp.
The KBW Nasdaq Regional Banking Index fell almost 5%. The index is down nearly 10% this week.
Shares of Western Alliance Bancorp fell more than 10%, while Zions Bancorp stock slipped 8% and shares of Eagle Bancorp and M&T Bank both fell over 6%.
Other regional banks fell as well, following shares of New York Community Bancorp, which traded almost 14% lower on Thursday.
New York Community Bancorp on Wednesday slashed its dividend and reported a quarterly loss. Chief Executive Thomas Cangemi said the company is adjusting to the regulatory demands of being a large bank after its purchase of assets and liabilities from Signature Bank, one of three banks that failed in rapid succession in early 2023 after spooked customers pulled cash en masse.
Analysts at Bank of America said NYCB's challenges are mostly its own, though the analysts said it is a reminder that credit normalization will likely have sector-wide implications.
Credit-ratings agency Moody's put its ratings on NYCB on review for downgrade, saying that its capitalization and funding could remain under pressure.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
February 01, 2024 11:17 ET (16:17 GMT)
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