Troubled New York Community Bancorp (NYCB) lost more than analysts expected in the first quarter, but after its earnings report Wednesday morning, investors were more focused on management's upbeat commentary about what is to come. As of 11 a.m. ET, shares of the regional lender had leaped 34% higher.

The path is clearing

New York Community has been making headlines for all the wrong reasons this year. The bank's shares plunged following a late-January announcement that it was slashing its dividend and taking other actions to build capital. A management overhaul and capital infusion helped stabilize the bank, but questions remained about its long-term future.

The company lost $0.25 per share in the first quarter, $0.10 per share worse than Wall Street had expected. Net interest income was down 16% sequentially to $624 million, and total non-performing loans soared to $798 million from $161 million a year ago.

But expectations were low coming into this earnings season, and New York Community finished the quarter with $28 billion in total available liquidity. More importantly, management says the institution is on track to return to profitability by 2026.

"While this year will be a transitional year for the Company, we have a clear path to profitability over the following two years," CEO Joseph Otting said in the earnings release. "By the end of 2026, we target significantly higher profitability and higher capital levels, including a return on average earnings assets of 1%, a return on average tangible common equity of 11% to 12%, supported by a common equity tier 1 capital target in the range of 11% to 12%."

Is now the time to buy New York Community Bancorp stock?

As many commentators have noted since the regional banking crisis last year, in the end, the whole banking industry is built on a foundation of confidence. While liquidity figures and other financial metrics are important, no amount of cash reserves will be enough if investors and depositors lose faith in an institution.

New York Community Bancorp appears to have survived its confidence crisis, and there is significant upside potential for the stock from here should Otting successfully execute his plans. However, investors should be mindful that 2026 is a long way off, and macroeconomic headwinds could complicate matters for the bank.

Those buying shares now will need to be patient, and be prepared to endure volatility along the way.