New York Community Bancorp earnings put regional bank stocks on hold.

New York Community Bancorp (NYCB) reported a surprise quarterly loss, causing the company’s shares to plummet and dragging down other regional bank stocks. NYCB swung to a net loss of $252 million for the fourth quarter, compared to earnings of $207 million in the previous quarter and $172 million a year ago. The bank’s interest income declined 4% and its interest expense rose 12%, leading to a 77% decrease in net interest income after provisions for credit losses. NYCB’s poor performance is attributed to its acquisition of certain assets of Signature Bank, which subjected the company to increased capital and liquidity requirements and regulatory scrutiny. As a result of the acquisition and heightened regulatory standards, NYCB cut its quarterly dividend by almost 70% to 5 cents per share.