First NBC Bank Holding Company (NASDAQ:FNBC)
First NBC Bank Holding Company (NASDAQ:FNBC) market prospects appear to have hit rock bottom after the bank confirmed it had received a letter notifying it of the imminent delisting from the Nasdaq. The delisting news comes on top of a U.S regulator confirming they had closed the lender’s banking unit after detecting a number of accounting issues dating back to 2015.
Delisting from the Nasdaq is a big a blow but does not come as a surprise given that the lender has experienced a tumultuous run. First NBC Bank Holding Company (NASDAQ:FNBC) has been the subject of intense regulatory scrutiny over the past year. The lender has also faced off with activist investors who have been pushing for management changes.
The Nasdaq delisting comes after the lender lost almost its entire market value – its stock having imploded below the $1 dollar trading range. Failure to file periodic quarterly earnings as required by the exchange served as an additional basis for the delisting notice. First NBC Bank stock will now cease trading in the stock exchange on May 10, 2017, its registration having been terminated.
First NBC Bank under Receivership
First NBC Bank Holding Company (NASDAQ:FNBC)’s stock shed 90% of its market value in Monday’s trading session after being placed under receivership and the Federal Deposit Insurance Corp appointed as the receivership manager. Mississippi-based Whitney Bank will take over all First NBCs transactional deposits and branches as part of the restructuring.
The collapse of the First NBC Bank Holding Company (NASDAQ:FNBC) represents the largest bank failure since the bank crisis in 2009. The bank goes down with an estimated $4.74 billion asset base. Whitney bank has already agreed to buy about $1 billion worth of assets at stake. The FDIC will retain the remaining assets.
First NBC Bank Holding Company (NASDAQ:FNBC) collapse comes as a surprise given that it was among the few banks that navigated the 2009 financial crisis without any problems. However, a combination of bad timing and aggressive lending in the recent past appears to have plunged it into the current mess. Last year the stock shed more than 80% in market value but as it stands 2017 brings the final blow as the stock will cease trading on the Nasdaq exchange after crashing below the $1 mark.
First NBC Bank Holding Company (NASDAQ:FNBC)’s stock registered an impressive rally of 164.48% in Wednesday trading session, consequently ending the day at highs of $0.247 a share.
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.