On February 8, 2024, a New York community bank stood in Brooklyn, New York City.
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shares New York Community Bank Shares fell 18% in after-hours trading Thursday after the regional bank announced leadership changes and disclosed internal control issues.
regional bank declare Executive Chairman Alessandro DiNello will serve as President and Chief Executive Officer, effective immediately. NYCB has been under pressure in recent months, in part due to concerns about its commercial real estate risks.
NYCB shares fell sharply in after-hours trading.
The bank also announced amendment In its fourth-quarter results, it added revelations about internal risk management.
“As part of management’s evaluation of the company’s internal controls, management identified material deficiencies in the company’s internal controls related to internal loan reviews, which resulted from oversight, risk assessment and Resulting from inadequate monitoring activities.” Foreign Exchange Commission.
DiNello previously served as CEO of Flagstar Bank, which was acquired by NYCB in 2022. He was named executive chairman of NYCB in early February after Moody’s Investors Service downgraded the bank’s credit rating to junk status.
“While we have faced recent challenges, we are confident in the bank’s direction and our ability to serve our customers, employees and shareholders over the long term. The changes we have made to our board and leadership team reflect that a new chapter is underway,” Diné said. Lowe said in a news release Thursday.
In another leadership change, Marshall Lux was promoted to NYCB board chairman, replacing Hanif Dahya. From 2007 to 2009, Lux served as global chief risk officer for JPMorgan Chase & Co.’s consumer bank, according to the release.
NYCB shares have fallen 53% so far this year after the company disclosed on Jan. 31 a higher-than-expected charge for potential loan losses.
The specter of loan losses has reignited concerns about the condition of the commercial real estate market and broader regional banks. Several regional banks, including Silicon Valley Bank, collapsed in 2023 as customers and investors became uneasy about the value of debt on banks’ balance sheets.
NYCB was actually the acquirer of one of the failed banks, signlast March.
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