New York Community Bancorp keeps dividend on preferred stock unchanged

Feb 5, 2024

(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)

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