New York Community Bancorp’s shares have John Caldwelltaken a nosedive this week, stoking fears about regional banks less than one year after a short-lived banking crisis.

The regional bank on Wednesday announced a net loss of $252 million last quarter, compared to a net income of $172 million the year prior. Dividends were slashed from 17 cents per share to 5 cents.  

The financial loss comes less than a year after the bank purchased the assets and liabilities of Signature Bank, one of the regional banks that collapsed in early 2023. That acquisition – along with the acquisition of Flagstar Bank which closed in 2022 – pushed New York Community Bank’s assets over the $100 billion mark to make it qualify as a Category IV “large bank” – a designation that comes with more stringent regulations around liquidity. CEO Thomas Cangemi said that made steps like slashing dividends "necessary" to rightsize the business.

Ratings agency Moody’s warned on Wednesday that it may cut the bank’s rating to “junk," noting that it expects capitalization and funding to remain “under pressure” now that the institution is transitioning to higher regulatory standards. 

But the bank's troubles aren't expected to negatively impact the banking sector at large, according to David Sacco, an instructor in finance and economics at the University of New Haven's Pompea College of Business.

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"It's more that the banks that bought these assets, basically a year later, they're still digesting them and having problems," Sacco said. "It's just the kind of thing that can happen when a smaller bank grabs assets of a bank that was having some troubles."

New York Community Bankcorp stock price

The bank’s stock closed at $5.75 Thursday, down 11.1%, after plummeting 38% Wednesday.

Other regional bank stocks also dipped in light of the news, with the KBW Regional Banking Index down 2.3% Thursday after closing down 6% Wednesday.  

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What does this mean for you?

Experts say there’s no reason customers should worry about money kept in banks covered by the Federal Deposit Insurance Corporation, especially since very few depositors surpass the $250,000 limit on the insurance.

And while the bank's slump caused other regional bank shares to dip, the reaction was "likely overdone," according to a Bank of America analyst note issued Wednesday.

"Just like the initial event (in 2023) I didn't think was going to cause a contagion, I don't think this will either," Succo said. "I think it'll be less impactful than the original (banking crisis)."