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NYCB shares tumble after regional lender swaps out CEO, says it identified ‘material weakness' in internal controls

·1 min

Shares of a regional lender fell by 20% in after-hours trading on Thursday after the company announced it had identified material weaknesses in its controls. The bank also announced a new president and CEO, effective immediately. This announcement followed a surprise loss of $252 million in the previous quarter, causing the stock to plunge to its lowest level since 1997. The bank reassured investors that deposits were stable and had slightly increased in the last quarter. The bank is delaying the release of its required annual financial disclosures to address the issues it identified.