TIMELINE-Embattled lender NYCB discloses 7% deposit outflow, cuts dividend further

(Updates with latest developments) March 7 (Reuters) - New York Community Bancorp disclosed a 7% drop in deposits over the past month and reduced its quarterly dividend for the second time since January, a day after it secured a $1 billion lifeline from a group of investors. The embattled lender has been under pressure since it posted a surprise fourth-quarter loss on Jan. 31, weighed down by higher provisions tied to its exposure to the beleaguered commercial real estate sector. Here is a timeline of key events surrounding NYCB: Date Development March NYCB subsidiary Flagstar Bank enters agreement with 19, 2023 U.S. regulators to buy deposits and loans from failed lender Signature Bank. Jan. 31 NYCB shares slump 37.7% after the lender slashed its dividend by 70% and posted a surprise loss for the fourth quarter, pressured by stress in its CRE portfolio. Moody's places all long-term and short-term ratings as well as assessments of NYCB and its subsidiary Flagstar Bank on review for a downgrade. Feb. 1 NYCB shares tumble another 11.1%, dragging down U.S. regional bank stocks amid a frenzied selling in banking shares. Bank says it believes stock price will recover as the market sees "value enhancing actions" being taken. Feb. 2 The bank's shares enjoy a reprieve, inching up 5% after sinking 45% in the past two sessions. After market close, Fitch downgrades long-term issuer default ratings for NYCB and its subsidiary Flagstar Bank. Feb. 5 Shares of NYCB resume descent. NYCB confirms its chief risk officer Nick Munson had left the company after a report from the Financial Times. Feb. 6 U.S. Treasury Secretary Janet Yellen tells a House Financial Services Committee hearing that she was concerned about looming CRE stresses on banks, but believed the situation is manageable with assistance from banking regulators. Shareholders file a class action suit accusing the regional bank of defrauding them by failing to disclose that it would set aside more money for credit losses. Moody's downgrades all long-term and some short-term issuer ratings of NYCB as well as assessments of its subsidiary Flagstar Bank to junk and warned of further downgrades. NYCB says total deposits rose slightly to $83 billion as of Feb 5. compared to $81.4 billion at the end of 2023. Adds that it is in the process of bringing in a new chief risk officer and chief audit executive. Feb. 7 Analysts express concerns about "governance risks", citing the bank's choice to not disclose the departure of key executives earlier, but cheer the strong liquidity position. NYCB names banking veteran Alessandro DiNello as its executive chairman and vowed to cut down the lender's exposure to the troubled CRE segment. Feb. 8 Morningstar DBRS downgrades NYCB's credit rating to "BBB" from "BBB (high)," citing the lender's "outsized" exposure to commercial real estate loans compared to its peers. Feb. 9 Top executives of the bank, including newly appointed executive chairman, disclose they bought stakes in NYCB, helping its stock rally. Feb 29 Names DiNello as CEO and revises fourth-quarter loss to $2.7 billion, more than 10 times what it previously stated. Identifies material weaknesses in the company's internal controls" and delays annual report. March 1 Ratings agencies Fitch and Moody's further downgrade NYCB's long-term issuer ratings March 6 Raised $1 billion from investors including former U.S. Treasury Secretary Steven Mnuchin's Liberty Strategic Capital and named former Comptroller of the Currency Joseph Otting its new CEO. March 7 Disclosed 7% drop in deposits over the past month and reduced its quarterly dividend for the second time since January Sources: Company statements, conference call, media reports (Reporting by Mehnaz Yasmin and Arasu Kannagi Basil in Bengaluru; Editing by Maju Samuel, Sriraj Kalluvila and Shounak Dasgupta)