Nycb Posts First: quarter loss on higher provisions (updated)

Signature Bank

01/05/2024 12:06

(Adds details and context throughout)
       May 1 (Reuters) - New York Community Bancorp  NYCB.N 
reported a loss for the first quarter on Wednesday, as the
commercial real estate-focused lender set aside more funds to
cover possible defaults.
        The bank's exposure to rent-regulated multi-family
properties and office buildings in New York has increased fears
of borrowers defaulting on their loans, prompting it to set
aside bigger rainy-funds.
  
        "We also completed an in-depth due diligence of the loan
portfolio, which included a thorough review of the top 250
multi-family loans, the top 50 office loans, and the top 50
non-office commercial real estate loans, and increased our
credit reserve during the quarter," said newly-appointed CEO
Joseph Otting in a statement.
  
        Provision for credit losses rose to $315 million in the
quarter, compared with $170 million in the year-ago period.
  
    The bank posted a loss of $327 million, or 45 cents per
share, in the three months ended March 31. That compares with a
profit of $2.01 billion, or $2.87 per share, in the year-ago
period.

 (Reporting by Niket Nishant and Manya Saini in Bengaluru;
Editing by Saumyadeb Chakrabarty)
 ((Manya.Saini@thomsonreuters.com;))