XPost: alt.politics.economics, alt.politics.democrats, alt.fan.rush-limbaugh   
   XPost: talk.politics.guns   
   From: werner89@gmail.com   
      
   On 04 Mar 2022, Turd Ferguson  posted some   
   news:svuadm$24htq$60@news.freedyn.de:   
      
   > Thank Kathy Hochul.   
      
   Shares of little-followed financial stock New York Community Bancorp   
   (NYSE: NYCB) collapsed 36.8% in January, according to data from S&P Global   
   Market Intelligence. Investors are getting nervous about the bank. New   
   York Community Bancorp bought the failed Signature Bank's assets last   
   Spring after it cut its dividend and wrote down some more of its loans.   
   Shares of the bank have struggled for years and are now off over 70% from   
   all-time highs set 10 years ago.   
      
   Here's why the stock fell in January.   
      
   Commercial real estate troubles   
   After taking on Signature Bank's assets in 2023, it looks like New York   
   Community Bancorp is having trouble absorbing its troubled real estate   
   loans. With commercial office vacancies rising to record highs, developers   
   and landlords are having trouble paying back loans. Well, New York   
   Community Bancorp owns a lot of these loans.   
      
   In the fourth quarter of 2023, the company had a $552 million provision   
   for credit losses, significantly higher than the $62 million provision   
   from the same quarter a year ago. This was due to growing net charge-offs,   
   deterioration in the office real estate space, and its multifamily real   
   estate portfolio, according to management. Higher credit losses led to a   
   $260 million net loss in Q4.   
      
   On top of this, New York Community Bancorp reduced its quarterly dividend   
   per share to $0.05, or $0.20 annualized. This is compared to $0.68 over   
   the last 12 months. Management performed this in order to keep the company   
   well-capitalized after passing the $100 billion asset threshold. Bank   
   stock investors love dividends, so a major cut like this likely led a lot   
   of shareholders to sell their positions. Dividend cuts at banks can also   
   be signs of major liquidity issues, which plagued the banks that failed   
   last year, such as Silicon Valley Bank.   
      
   Is the stock a buy?   
   After falling so far, New York Community Bancorp trades at a price-to-book   
   value (P/B) below 0.5. P/B is the best way to value a bank stock, with a   
   ratio below 1.0 indicating a stock trades below the net value of the   
   assets on its balance sheet. However, with all of its write-downs, New   
   York Bancorp's book value per share has started to decline in recent   
   quarters.   
      
   Niche banking stocks are for experienced investors. New York Bancorp is a   
   troubled financial institution with a complicated balance sheet and major   
   exposure to the commercial real estate sector. Unless you are confident in   
   the health of its loan book, it's best to avoid this stock for now. Buy   
   some simpler blue chips instead.   
      
   https://finance.yahoo.com/news/why-york-community-bancorp-stock-   
   231200391.html   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)