Regional bank stocks tumbled Wednesday, led by New York Community Bancorp Inc. (NYCB), which swung to a net loss for the fourth quarter and slashed its dividend as it prepares to meet higher regulatory standards after 澳洲幸运5官方开奖结果体彩网:acquiring certain Signature Ba🏅nk assets last March.

Shares of NYCB sank as much as 46% early Wednesday to $5.58, their lowest level since March’s regional banking crisis. At 1:20 p.m. ET, the stock had recovered a bit to $6.55. The broader regional banking sector followed NYCB lower, with the SPDR S&P Regional Banking ETF (KRE) down about 2% at the same time Wednesd꧒ay. 

NYCB posted a $252 million net loss in the latest quarter after earning $207 million in the third quarter and $172 million a year ago. Interest income declined 4% from the prior quarter to $1.45 billion, while interest expense rose 12% from the third quarter to $707 million. That, plus a 790% bulk-up in the bank’s 澳洲幸运5官方开奖结果体彩网:provisions for credit losses, caused net interest income after the provisions to shrink 77% quarter-over-quarter.

For the full year, the bank’s net income totaled $2.37 billion, more than triple the profit earned from 2022. But stripping out 澳洲幸运5官方开奖结果体彩网:one-time charges and a $2.2 billion windfall from its 澳洲幸运5官方开奖结果体彩网:Signature Bank acqꦫuisition, net income declined 4% to $609 milli🌠on.

The bank’s Signature transaction wasn’t without its drawbacks—the acquisition brought the bank’s assets to more than $100 billion, launching it into the ranks of Category IV banks. That designation brings with it more stringent 澳洲幸运5官方开奖结果体彩网:capital and liquidity requirements and regulatory scrutiny. 

As such, the bank cut its quarterly dividend to 5 cents a share, a more than 70% reduction.

“We believe this is the prudent decision as it will allow us to accelerate the building of capital to support our balance sheet as a Category IV bank,” Chief Executive Officer (CEO) Thomas Cangemi said in a press release.