Deutsche Bank analysts downgrade New York Community Bancorp (NYCB) to Hold from a Buy rating over concerns about the regional bank's recent earnings results. Yahoo Finance Live discusses New York Community Bancorp's recent troubles coming a full year after 2023's regional banking crisis.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

BRAD SMITH: New York Community Bancorp hit with a downgrade from Deutsche Bank. This comes after a disappointing earnings report-- excuse me-- from the regional bank. You're seeing shares higher, though, by about 1.2% here on today's trading activity.

SEANA SMITH: Yeah, Brian, when you take a look at some of the concern, at least it has been surrounding the regionals here, a lot of that has been the fact that the weakness in commercial real estate has been creeping back into the conversation, especially after a hot jobs print like we got out this morning. The Fed potentially further delaying any talk of a rate cut, and then of course, the pressure that that would potentially put on regional players like this.

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It is notable, we are moving to the upside here today. But when you take a look at maybe a five-day chart, you will see that pressure that we saw in the stock over the last couple of days. And that, of course, pointing back to so many concerns that we have seen surrounding the regional sector at large.

Adding to some of those earlier losses, concerns about the theory exposure, but also just the fact that it reignited a lot of the fears that we had talked about nearly a year ago, going back to March when we saw the failure of a few regional banks that frenzied selling that occurred then. There was some worry that maybe this was the start of something maybe not to that scale-- but just in terms of the line of thinking here from some investors being a little bit spooked by some of those macro trends.

So we saw that reflected in the regional banking ETF that you're looking at here on your screen over this past week. But again, when at least when it comes to some of those individual plays, when it comes to New York Community Bancorp, at least for today, able to regain a little bit-- or I guess sustain its footing, at least for today's trading day, up just about 1%. But look at that five-day chart. Certainly tells a very different story.

BRAD SMITH: Yeah, indeed. And it really kind of hearkens back to what we were thinking and monitoring even last year. And it was one big word that we were all doing a Command- or Control-F every time we got one of the regional bank reports that came out. And it was deposits.