Market Data 
By Manya Saini and Niket Nishant
(Reuters) -New York Community Bancorp on Friday delayed its goal of turning profitable by a year to 2026 as the regional lender struggles to cut its exposure to commercial real estate, while selling non-core businesses and cutting costs.
NYCB was aiming to breakeven or make a profit of 5 cents per share in 2025, but now expects to report a per share loss of 30 cents to 35 cents, sending its shares down 10% before the bell.
The lender posted its fourth straight quarter of loss as mortgage payments take a hit from office properties struggling to recover from the pandemic-led lockdowns and elevated refinancing costs adding to the woes.
Its third-quarter loan-loss provision jumped nearly four-fold to $242 million. Ballooning charge-offs – debt written off as unlikely to be recovered – have led regional lenders to increase provisions to cover the CRE sector.
“On the asset quality front, we have completed 97% of our annual review of the multi-family and commercial real estate portfolios and have taken substantial charge-offs across the portfolio,” CEO Joseph Otting said.
Currently, multi-family apartment blocks comprise 47% of NYCB’s $71.1 billion loan book, with a big share on buildings with controls on how much landlords can raise rents, which has dimmed their appeal.
The lender had earlier this month decided to cut 700 jobs, representing 8% of its total workforce, as part of its turnaround plan.
Additionally, 1,200 more employees are set to leave the bank as it completes the divestiture of its mortgage servicing and third-party origination business.
Even in 2026, NYCB expects a smaller profit of 75 cents to 80 cents per share, compared with its prior forecast of $1.25 to $1.30.
MOUNTING LOSSES
Since posting a surprise fourth-quarter loss on Jan. 31 due to CRE exposure, NYCB has been under pressure, forcing it to shake-up its top management and face intense regulatory scrutiny.
After reporting a bigger third-quarter loss than market expectations on Friday, it now expects to end the year with a bigger annual loss than initially expected.
On a per-share basis, it expects full-year loss of $3 to $3.10 compared with the prior view of $2.20 to $2.30.
Net charge-offs totaled $240 million compared with $349 million, in the prior quarter ended June 30.
Meanwhile, net interest income – the difference between what a bank earns off loans and pays out on deposits – slumped 42% to $510 million.
NYCB posted a net loss available to common shareholders of $289 million, or 79 cents per share, compared with a profit of $199 million, or 81 cents per share, a year ago.
On an adjusted basis, per share loss of 69 cents in the third quarter, was bigger than analysts’ estimates of 40 cents, according to data compiled by LSEG.
