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Executives at New York Community Bancorp are betting with their own money that they can turn the regional lender’s fortunes around. According to securities filings compiled by Verity Data, seven insiders at the troubled bank have bought NYCB shares this week. The value of the purchases amounts to more than $800,000 combined, according to Verity. That includes 50,000 shares purchased by Alessandro DiNello, who was elevated to executive chairman of NYCB on Wednesday morning, shortly after Moody’s Investors Service downgraded the bank’s credit rating. The biggest buy came from director Peter Schoels, who scooped up 100,000 shares . Outside of sitting on NYCB’s board, Schoels has experience in distressed debt as part of the investment firm MaltinPatterson. Shares of NYCB have fallen more than 50% since Jan. 30, when the bank took a larger than expected charge against expected loan losses and cut its dividend. The bank said that charge was due in large part to increased regulatory requirements stemming from its acquisition of the failed Signature Bank, but the outlook for commercial real estate loans also appears to have played a role. NYCB 1M mountain Shares of NYCB have been cut in half since late January. The commercial real estate angle has been particularly worrisome to investors and Wall Street analysts, who fear that other regional banks may have similar issues . The stock purchases by insiders may help restore market confidence in NYCB. Many professional investors monitor insider buying for signs that management thinks a company is undervalued. Shares of NYCB were up 16% in afternoon trading Friday.
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