New York Community Bank stock drops even after lender says deposits increased

Troubled regional lender New York Community Bancorp attempted to reassure investors Wednesday that it has enough liquidity to stay afloat after the stock shed about 60% of its value over the past eight days and Moody’s Investors Service downgraded the bank’s credit grade to junk.

Troubled regional lender New York Community Bancorp attempted to reassure investors Wednesday that it has enough cash to stay afloat after the stock shed about 60% of its value over the past eight days and Moody’s Investors Service downgraded the bank’s credit grade to junk. “The challenge today is not easy. But this company has a strong foundation, strong liquidity and a strong deposit base, which gives me confidence for our path forward,” Alessandro DiNello, the bank’s new executive chairman, said on a call with investors Wednesday morning. DiNello said that NYCB has seen “virtually no deposit outflow” from its retail branches in recent weeks. The bank announced earlier on Wednesday that it had appointed DiNello, formerly the president of Flagstar Bank, to the position effective immediately. NYCB (NYCB) purchased Flagstar in December 2022. The Hicksville-based bank also said it has plans to bring in a new chief risk officer and chief audit executive, replacing the previous executives in those roles who left the company as its stock plunged. “Overall deposits are up from around 2023, as all areas of the company have performed strongly, including our private banking and mortgage teams,” said DiNello on the call. “We are already in a strong liquidity position … And we are committed to building liquidity further.”