(Bloomberg) -- New York Community Bancorp surged 18% on Tuesday, paring a two-day rout that had taken the shares to the lowest level since 1996.

Tuesday’s move was the stock’s biggest jump in almost a year, and followed a sharp selloff spurred by credit-rating downgrades and the disclosure last week of “material weaknesses” in how the company tracks loan risks.

“It’s been due for a bounce,” Janney Montgomery Scott LLC analyst Chris Marinac, who has a buy rating on the stock, said in an interview. “I think to some extent there’s been excessive negativity.”

NYCB led an outperformance in shares of regional lenders, with the KBW Regional Banking Index rising the most since December even as the S&P 500 dropped about 1%. Executives at several firms who spoke Tuesday at an RBC Capital Markets financial-institutions conference were positive on the state of the economy, with U.S. Bancorp’s chief financial officer saying the firm’s base case is for a soft economic landing. 

Citizens Financial Group Inc., BankUnited Inc. and Western Alliance Bancorp were among stocks in the sector that gained more than 5% Tuesday.

NYCB has been under pressure since its earnings announcement in January, when the firm slashed its dividend and set aside more provisions than expected for loan losses. Last week, it announced it was replacing its chief executive officer and had identified “material weaknesses” in how it tracks loan risks. 

Read More: NYCB Ballooned Despite Real Estate Warnings in Years Before Fall

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