New York Community Bank (NYCB) reported a quarterly loss of $335 million in the first quarter of 2024, compared to net income of $2.0 billion a year earlier. The loss was driven by a rise in soured commercial loans and higher expenses. However, excluding merger-related charges, the loss was $182 million, slightly higher than analysts’ estimates. NYCB announced new performance targets aimed at improving profitability and capital levels by the end of 2026. CEO Joseph Otting emphasized the bank’s transition and the path to profitability over the next two years. The bank plans to achieve a return on average earning assets of 1% and a target common equity tier 1 capital level of 11% to 12%. Otting joined NYCB as CEO in early April after an investor group led by former Treasury Secretary Steven Mnuchin invested over $1 billion in the bank. NYCB has faced challenges since late January when it reported a disappointing fourth-quarter earnings report and experienced stock decline, management changes, and rating agency downgrades. The bank’s stock jumped 20% in premarket trading after the announcement of the new performance targets and asset sale plans. NYCB aims to sell $5 billion in assets within 60 to 70 days to enhance liquidity levels. The story is developing, and updates will be provided as they become available.
New York Community Bank Posts Quarterly Loss Amid Rising Expenses and Soured Loans, But Stock Surges
