Finance

NYCB Shares Tumble Most Since March as Loan Provisions Surge

A Flagstar Bank branch in Southfield, Michigan, US.Photographer: Emily Elconin/Bloomberg
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New York Community Bancorp’s stock fell as much as 17% after reporting provisions for loan losses higher than every analyst’s estimate.

The second-quarter loan provision was $390 million, well above the average estimateBloomberg Terminal of $193 million. The figure reflects an increase in charge-offs, primarily office loans, and the continuing impact of higher interest rates and inflation on the bank’s multifamily portfolio, NYCB said in a statementBloomberg Terminal Thursday.