Does NYCB's Selloff Make Regional Bank Stocks a Buy?

Regional bank stocks might look cheap as NYCB spirals, but analysts caution against going bargain hunting just yet.

regional banks
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Shares in New York Community Bank (NYCB) and other regional lenders might look attractive on a valuation basis, but analysts say it's too soon to call a bottom in the sector.

NYCB stock continued reeling on Wednesday after Moody's Investors Services downgraded the troubled regional bank's credit rating two notches to junk. Shares have lost about 60% of their value so far this year after NYCB posted a surprise fourth-quarter loss, hurt by growing losses on commercial real estate. NYCB cut its dividend by 71% to shore up its capital levels, further spooking investors. 

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Dan Burrows
Senior Investing Writer, Kiplinger.com

Dan Burrows is Kiplinger's senior investing writer, having joined the august publication full time in 2016.

A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. He has written for The Wall Street Journal, Bloomberg, Consumer Reports, Senior Executive and Boston magazine, and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among other publications. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange and hosted a weekly video segment on equities.

Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.

In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate, cost of living indexes and more.

Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.

Disclosure: Dan does not trade stocks or other securities. Rather, he dollar-cost averages into cheap funds and index funds and holds them forever in tax-advantaged accounts.