New York Community Bancorp, the bank that took over the non-crypto deposits of defunct Signature Bank on Wednesday, saw its shares fall as much as 42 percent after it missed earnings estimates and cut its dividend.

According to FactSet, the bank reported a loss of $0.36 per common share in its fourth quarter, falling short of analyst estimates of $0.27. In an statement , the company stated that “merger-related expenses and a FDIC Special Assessment” had impacted its fourth-quarter earnings and diluted earnings per share.

In 2018, NYCB’s Flagstar Bank unit took over deposits that were not crypto-related from Signature Bank after state regulators closed down the crypto bank. Signature Bank was one of the many banks that failed during the “banking crises” of 2023, which saw the voluntary closure and Silvergate Bank.

NYCB has also reduced its quarterly dividends from $0.05 to $0.05. This is a 71% reduction compared to the previous quarter.

In a statement, Thomas Cangemi, President and CEO of Cangemi Financial Group said: “We understand the impact and importance of the dividend cut on our stockholders. We did not make this decision lightly.” We believe that this is a prudent decision, as it will enable us to build capital faster to support our bank’s balance sheet.

The shares of the bank have fallen almost 40% in this year while SPDR S&P Regional Banking ETF KRE has dropped 2.2%.

Read more: Crypto isn’t the reason why Signature Bank was closed

Sheldon Reback is the editor.