New York Community Bank Stock Halted After Massive Plunge

Trading of New York Community Bank (NYCB) stock was halted on the New York Stock Exchange on Wednesday following a dramatic plunge of more than 42 percent, reaching all-time lows.

The halt is pending further news from the bank, which is the 35th largest in the U.S. and was founded in 1859.

The Context

The continued halt in trading of the stock comes after a turbulent period for the institution, which has seen its shares plummet by more than 82 percent since the beginning of the year. The dramatic drop follows a series of challenges, including weaker than expected financial results, a reduction in quarterly dividends, and concerns over potential losses in the commercial real estate sector.

The recent move to halt trading of the stock points to the severity of the bank’s situation and the heightened scrutiny it now faces from investors and regulators.

What We Know

In an attempt to stabilize its position and restore confidence, New York Community Bank has reportedly sought external capital and explored equity sales with potential investors. The strategy aims to address the material weaknesses in internal controls and the bank’s significant exposure to the commercial real estate market, which has been compounded by the broader banking sector’s struggles with rising interest rates and economic uncertainties, according to a Wall Street Journal report.

The bank’s efforts to navigate its challenges have led to an executive exodus, including the appointment of new C-level employees and board members as it seeks to reassess and strengthen its operational and financial strategies moving forward.

The stock has fallen to $1.86 per share from $10.41 at the beginning of the year, according to data from Google Finance.

This is a breaking news story. Newsweek will update this story once more information becomes available.

Update 3/6/24, 2:25 p.m. ET: This story was updated with additional information.