New York Community Bancorp (NYCB) continues to feel the pressure a year after the collapse of Silicon Valley Bank. That stress may be alleviated as Former Treasury Secretary Steve Mnuchin leads a team of investors poised to inject the regional bank with a $1 billion bailout. KBW Head of US Bank Research Chris McGratty joins Yahoo Finance to discuss NYCB's commercial real estate concentration issue and broader challenges for the regional banking sector. To address the bank's significant share of commercial real estate, McGratty outlines several paths forward for New York Community Bancorp's management:"The concentration issue is something that they're trying to address. Now if they were to sell this portfolio, the mark they would have to take given where interest rates are would be capital destructive. So it would reverse tangible book value. It would pressure earnings even further. You have to take a step back and say what could they sell, what could they reduce or take off their balance sheet. We estimate there's roughly $24 to $25 billion of loans on the balance sheet that could either be sold or securitized. And really the mark would be less punitive. Now it does increase the CRE concentration proportion on their balance sheet, but it's one step I think they need to take." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino

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