Trading of New York Community Bank (NYCB) stock was halted on Wednesday on the New York Stock Exchange following a staggering drop of over 42 percent, hitting historic lows. The halt is pending further news from the bank, which was founded in 1859 and currently ranks as the 35th largest bank in the U.S.

This suspension comes after a tumultuous period for NYCB, with their shares witnessing a drastic decline of more than 82 percent since the beginning of the year. The freefall in stock value can be attributed to a series of challenges that the bank has faced, including weaker financial results, a reduction in quarterly dividends, and concerns regarding potential losses in the commercial real estate sector.

The decision to halt trading of NYCB's stock underscores the severity of the bank's situation and has brought about increased scrutiny from investors and regulators. In an effort to stabilize its position and restore confidence, NYCB has reportedly been seeking external capital and exploring equity sales with potential investors.

A recent report by the Wall Street Journal indicates that NYCB's strategic efforts are aimed at addressing internal control weaknesses and the bank's substantial exposure to the commercial real estate market. These challenges have been further amplified by the struggles that the broader banking sector is facing due to rising interest rates and economic uncertainties.

In order to address its challenges, NYCB has witnessed an exodus of top-level executives and board members, with new appointments being made to reassess and strengthen the bank's operational and financial strategies moving forward.

Data from Google Finance reveals that NYCB's stock has plummeted from $10.41 per share at the beginning of the year to a mere $1.86 per share.

As this is a breaking news story, Newsweek will continue to provide updates as more information becomes available.

Updated on March 6, 2024, at 2:25 p.m. ET: Additional information has been added to this report.