New York Community Bank has endured a difficult year, and the situation appears to be worsening. In January, NYCB's earnings report revealed a substantial $252 million loss in the final quarter of 2023. This loss prompted a significant dividend cut, largely attributed to a $552 million provision for loan losses. These provisions were necessary to cover struggling loans acquired in the recent $38.2 billion purchase of Signature Bank debt from receivership. The acquisition has pushed NYCB into a Category IV bank status, necessitating increased allowances for credit losses.