© Reuters.
(Reuters) – Shares of New York Community Bancorp (NYSE:) plunged 41% on Wednesday after the lender slashed its quarterly dividend and posted a surprise loss for the last three months of the year.
The company reduced its dividend by 70% to 5 cents per share.
“During the fourth quarter, we took decisive actions to build capital, reinforce our balance sheet, strengthen our risk management processes, and better align ourselves with the relevant bank peers,” CEO Thomas Cangemi said.
It also reported an adjusted profit of 27 cents per share, compared with analysts’ average estimate of a profit of 28 cents per share.
“While we certainly did not expect this degree of impact… it appears that a more mature management team is now driving the ship and willing to now take the considerable short-term pain in order to position for long-term gain,” J.P.Morgan’s analyst Steven Alexopoulos said.
