New York Community Bancorp Nosedives To 1997 Lows: Analysts Split, But Market Fears Persist
Shares of New York Community Bancorp (NYSE:NYCB) were tumbling more than 10% to below the $4 mark in Wednesday morning trading, hitting their lowest level since March 1997. The stock was halted on a circuit breaker to the downside before resuming trading.
This steep decline comes amid ongoing concerns about the bank’s exposure to troubled commercial real estate loans.
On Tuesday, two U.S. investment banks issued mixed reports on NYCB:
- Bank of America downgraded the stock from Overweight to Neutral and lowered the price target from $8.50 to $5.
- JPMorgan downgraded NYCB from Overweight to Neutral and lowered the price target from $11.50 to $5.50.
- Piper Sandler reiterated its Overweight rating, maintaining its $8 price target.
NYCB released an overnight statement stating that its deposits have risen and its liquidity is “ample.” The bank said that total insured and collateralized deposits represent 72% of total deposits.
A cold shower came from ratings agencies that downgraded NYCB’s credit rating:
- Fitch downgrade NYCB’s long-term credit rating to one notch above non-investment grade at BBB-.
- Moody’s downgraded NYCB’s debt rating from Baa3 to Ba2.
The SPDR S&P Regional Banking ETF (NYSE:KRE) was 1.6% lower at 10:30 a.m. in New York, …
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