NYCB Just Dropped 45% in Two Days. Are Regional Banks in Trouble?

NYCB's stock price dropped by 45% to its lowest level in over 20 years after a tough Q4, which included a 71% dividend cut. The bank's poor performance has raised fears of a second regional banking crisis due to a surge in net charge-offs and increased reserves for loan losses in commercial real estate. Despite most regional banks expected to maintain strong credit quality in 2024, the high exposure to commercial real estate office and multi-family properties is a concern.