Shares of New York Community Bank slid more than 25 percent on Friday, a day after the lender said its loss in the fourth quarter was $2.4 billion more than it had previously reported, and also announced the departure of its chief executive and a board member.
Shares of other regional banks were also lower: Valley National Bank and Columbia Banking System both fell more than 2 percent.
The KBW Regional Bank Index, which tracks performance of U.S. regional banks, fell more than 1 percent.
The drop in shares of other banks is a sign investors are still nervous about the potential for wider trouble in the banking sector — nearly a year after several small banks failed.
But the fact that the declines in other regional banks were small suggested that NYCB’s problems are seen as unique to it.
Persons:
”, Christopher Marinac, Janney Montgomery Scott
Organizations:
New York Community Bank, National Bank and Columbia Banking System, Regional