What happened

Shares of New York Community Bancorp (NYSE:NYCB) declined by more than 13% on Oct. 30, following the release of the bank holding company's third-quarter results. 

So what

New York Community Bancorp's net income available to common shareholders rose 2% sequentially to $90.8 million, or $0.19 per share. That matched analysts' estimates. 

However, NYCB is facing increased competition from non-bank lenders, which is making it more difficult to grow its loan portfolio. "On the lending front, our loan portfolio continued to grow compared to the level at year-end 2018, led by our multi-family and specialty finance loan portfolios, but our end of period loan portfolio was down modestly compared to the prior quarter," CEO Joseph Ficalora said in a press release.

These lenders are offering more attractive terms to borrowers, albeit at greater risk to themselves. "During the quarter, we experienced a number of loans refinancing away from us, as the dollars offered by alternative lenders did not meet our stringent underwriting standards," Ficalora said.

A person pointing to a declining stock chart

New York Community Bancorp's shares fell sharply on Wednesday. Image source: Getty Images.

NYCB is also facing heightened competition for deposits. The company said that several competitors have shown a "willingness to pay irrational interest rates" on large institutional deposit balances. Rather than compete with them, NYCB has chosen to instead focus on smaller, lower-cost retail deposits. In turn, its interest-bearing checking and money market accounts declined by $1.6 billion compared to the year-ago period.

Now what

After Wednesday's decline, New York Community Bancorp's $0.17 quarterly cash dividend equates to an annualized yield of approximately 5.8%. That could make its stock appealing to income-focused investors, particularly in the current low-interest rate environment.