May 1 (Reuters) - New York Community Bancorp ( NYCB )

reported a loss for the first quarter on Wednesday, as the

commercial real estate-focused lender set aside more funds to

cover possible defaults.

The bank's exposure to rent-regulated multi-family

properties and office buildings in New York has increased fears

of borrowers defaulting on their loans, prompting it to set

aside bigger rainy-funds.

"We anticipate an elevated level of loan loss provision

over the remainder of 2024 related to the potential for market

and rate conditions to impact borrower performance on certain

portions of our loan portfolio," newly appointed CEO Joseph

Otting said in a statement.

In the first quarter, provision for credit losses rose to

$315 million in the quarter, compared with $170 million in the

year-ago period.

Otting added the bank is targeting significantly higher

profitability and higher capital levels by the end of 2026.

Analysts and investors

expect

NYCB will have to lure buyers for its CRE loans with steep

discounts and diversify its revenue as it races to shore up its

finances.

Shares of the bank, which have been under pressure since

January, were up 4.5% in premarket trading after results. The

stock is off 74% so far this year.

NYCB has been trying to arrest a persistent stock rout

that has wiped billions off its market value, roughly a year

after the collapse of Silicon Valley Bank and Signature Bank ( SBNY )

ignited widespread concerns over the health of the sector.

The stock took a hammering in January after posting a

surprise quarterly loss and announcing a 70% reduction of its

dividend.

A month later, the lender disclosed it had found

"material weakness" in internal controls and revised its loss to

10 times higher than earlier due to a goodwill impairment

charge.

It received a $1 billion lifeline from an investor

consortium led by former U.S. Treasury Secretary Steven

Mnuchin's Liberty Strategic Capital in March that has helped

shore up the bank for the short-term.

The bank posted a loss of $327 million, or 45 cents per

share, in the three months ended March 31. That compares with a

profit of $2.01 billion, or $2.87 per share, in the year-ago

period.

(Reporting by Niket Nishant and Manya Saini in Bengaluru;

Editing by Saumyadeb Chakrabarty)