Trading for New York Community Bank stock ($NYCB) halted Wednesday following the stock crashing by 42%. According to reports, the New York regional bank is seeking a cash infusion following poor performances.
According to the Wall Street Journal, NYCB is searching for outside investors to offer cash to handle the bank’s balance sheet. The shares of the NYCB were halted several times on Wednesday during the crash, and are down over 40% today alone. The stock was trading over $10 at the start of 2024 and now sits just below $2 per share.
2024 has been a tumultuous year thus far for NYCB. The bank revealed in late January that it was raising the allowance for potential loan losses on its balance sheet. Furthermore, Moody Investors has dropped the bank’s credit rating to “junk status.”
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Now, investors are looking at the regional bank as following a similar path to Silicon Valley Bank and First Republic, who both had a similar demise in Spring 2023. These banks have all struggled, with inflation continuing to be above-preferred levels and an unknown expected start for interest rate cuts. Now, New York Community Bank appears to be next in line with stocks tumbling.
NYCB has yet to comment publicly on the crash or halt of trade.