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New York Community Bancorp Inc. on Thursday announced an immediate leadership shakeup, including a new CEO, after the bank booked a big hit to its profits last year, said it had \u201cmaterial weaknesses\u201d in its accounting protocols and disclosed other financial-reporting issues. <\/p>\n
The disclosures mark the latest drama for the Long Island, N.Y.-based bank, which has struggled with its exposure to an ailing commercial real-estate market. Shares of the company \u2014 which operates Flagstar Bank in several states and picked up some of the leftovers from the failed Signature Bank last year<\/a> \u2014 dropped 23.9% after hours. <\/p>\n New York Community Bancorp The leadership change came with some resistance among NYCB\u2019s board. Hanif Dahya also resigned as presiding director and as a board member, saying in his resignation letter<\/a> that he \u201cdid not support the proposed appointment\u201d of DiNello. <\/p>\n Marshall Lux has been named presiding director of the board, effective immediately. <\/p>\n \u201cIt is my mandate as president and CEO, alongside our board, to continue our transformation into a larger, more diversified commercial bank,\u201d DiNello said in a statement. <\/p>\n \u201cWhile we\u2019ve faced recent challenges, we are confident in the direction of our bank and our ability to deliver for our customers, employees and shareholders in the long term,\u201d he said. \u201cThe changes we\u2019re making to our board and leadership team are reflective of a new chapter that is underway.\u201d<\/p>\n In a filing<\/a> on Thursday, the company said that following a review, a goodwill impairment charge resulted in a $2.4\u00a0billion decrease to its fourth-quarter and annual net income. <\/p>\n It also said that as management evaluated the bank\u2019s internal financial controls, it identified \u201cmaterial weaknesses\u201d related to a loan review. The deficiencies, it said, resulted from \u201cineffective oversight, risk-assessment and monitoring activities.\u201d <\/p>\n Additionally, NYCB said it was unable to file its annual report on time, as it adjusts figures related to the purchase of the former Signature Bank\u2019s assets and other matters. It noted in the filing that it \u201cdoes not currently anticipate\u201d that its financial statements in its 2023 annual report will differ significantly from those in an amendment dated Feb.\u00a029.<\/p>\n The rise of remote and hybrid work during the pandemic, along with higher interest rates from the Federal Reserve, have upended the market for office space and commercial real estate and complicated refinancing. New York Community Bank is among the biggest lenders for multifamily housing \u2014 such as apartment buildings with multiple units \u2014 both in New York City and nationwide.<\/p>\n\n
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\n said it had appointed Alessandro DiNello as its new president and chief executive effective immediately, after Thomas Cangemi resigned from the roles after 27 years at the company. Former Flagstar CEO DiNello was appointed as NYCB\u2019s executive chair earlier this month, having previously served as nonexecutive chair of its board. Cangemi will remain on the board.<\/p>\n