NYCB recently acquired assets from the now-defunct Signature Bank|Tdorante10|CC-BY-SA 4.0

New York Community Bancorp (NYCB) shares tumbled 38% on Wednesday after the bank posted a $252 million loss in the fourth quarter, a stark contrast to the $172 million profit a year ago—hitting a 25-year low—reigniting fears for regional banks.

CEO Thomas Cangemi mentioned that the bank is adjusting to regulatory demands after acquiring assets from Signature Bank—which went defunct during the 2023 banking crisis.

The acquisition propelled NYCB’s total assets to over $100 billion, triggering the need to set aside more capital by law and restricting lending capacity. To bolster capital and liquidity, the bank reduced its quarterly dividend from 17 cents to 5 cents per share.

The results reminded some investors of the 2023 bank crisis when Signature, Silicon Valley Bank and First Republic Bank collapsed within weeks.

NYCB’s troubles have also impacted regional bank stocks, with the KBW Regional Banking Index falling 6%, its biggest one-day drop since March 2023.