New York Community Bancorp (NYCB) reports $260M Q4 2023 loss, initiates capital strengthening


  • NYCB reports a $260M Q4 2023 loss, sparking concerns.
  • Shareholders watch as NYCB seeks recovery from setbacks.
  • Capital strengthening is crucial for NYCB’s financial stability.

New York Community Bancorp (NYCB) has witnessed a significant decline in its share price, plummeting by 40% following the announcement of a $260 million loss in the fourth quarter of 2023. 

This downturn comes after NYCB acquired the assets and liabilities of Signature Bank, a crypto-friendly institution that collapsed in March 2023 during a regional banking crisis.

New York Community Bancorp (NYCB) Signature Bank acquisition

In the wake of Signature Bank’s closure and its takeover by the New York Department of Financial Services (NYDFS) in March 2023, NYCB stepped in to acquire the non-crypto deposits and loans of the failed bank. 

The United States Federal Deposit Insurance Corporation (FDIC) confirmed that Signature Bank’s 40 branches would continue to operate under the Flagstar Bank name as a wholly-owned subsidiary of NYCB.

This acquisition had initially driven NYCB’s stock price up to $9.19 on March 21, with it even reaching a high of $13.87 on July 31. NYCB President and CEO Thomas Cangemi expressed enthusiasm for the acquisition, stating that Signature Bank’s assets and liabilities were strategically and financially attractive. 

He further emphasized that the acquisition strengthened NYCB’s balance sheet by adding a substantial amount of low-cost deposits and a middle-market business supported by over 130 private banking teams.

New York Community Bancorp’s recent financial troubles

However, NYCB’s recent financial troubles have eroded the gains made through the acquisition of Signature Bank. In its quarterly report for the last three months of 2023, NYCB revealed a staggering $260 million loss, a stark contrast to the $164 million profit reported during the same period in 2022. 

To address these challenges, Cangemi announced decisive actions to bolster capital, including a reduction in the quarterly common dividend to $0.05 per share.

This announcement had an immediate impact on NYCB’s stock price, causing it to plummet from $10.37 to a low of $6.34 on January 31. Although there was a slight recovery to $7.12, at the time of writing, the stock price stands at $6.49, as reported by the stock analysis platform TradingView.

Debate over crypto’s role in Signature Bank’s collapse

The collapse of Signature Bank in 2023 sparked a contentious debate about the role of cryptocurrency in its downfall. FDIC Chairman Martin Gruenberg suggested in a May 2023 hearing that Signature Bank’s failure was due to its failure to comprehend the risks associated with crypto. 

However, this perspective was met with disagreement from various parties who argued that crypto was not the primary cause of the bank’s collapse.

NYDFS Superintendent Adrienne Harris explicitly stated that the collapse of Signature Bank had nothing to do with its exposure to digital assets. U.S. Senator Cynthia Lummis also criticized former Signature Bank executive Scott Shay for attributing the bank’s collapse to crypto, asserting that he was deflecting blame onto digital assets and refusing to accept responsibility for the bank’s failure.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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