(Reuters) -New York Community Bancorp kept the quarterly dividend for its preferred stock unchanged on Monday, days after it slashed the payout for its common shares by 70%.
The bank said it would pay dividend of $15.94 per preferred share, same as its prior quarters. Preferred shareholders are typically entitled to more favorable dividend compared to common shareholders.
Common shares of the New York-based bank fell nearly 5% in the early hours of trading. The bank’s investors were last week caught off guard by a surprise fourth-quarter loss and the dividend cut for the common shares.
In the two days after its report, its stock slumped nearly 45% before paring losses on Friday. Fitch on Friday downgraded NYCB’s credit rating and Citi later lowered the target price on its shares to $7 from $11.
The KBW Regional Banking index fell 1.77% on Monday.
(Reporting by Niket Nishant in Bengaluru; Editing by Krishna Chandra Euri and Arun Koyyur)
