Commercial real estate lender New York Community Bancorp said it discovered “material weaknesses” in how it tracks loan risks, wrote down the value of companies acquired years ago and replaced its leadership to grapple with the turmoil. The stock plunged.
Alessandro DiNello will become chief executive officer effective immediately, succeeding Thomas Cangemi, the lender said in a statement late Thursday. The company expects to miss a deadline for filing an annual report.
Cangemi’s replacement is executive chairman Alessandro DiNello, who had been acting as the bank’s true boss since Feb. 6 after the board changed NYCB’s bylaws so that Cangemi reported directly to DiNello.
One NYCB director, Hanif “Wally” Dahya, said in a Feb. 25 letter that he “did not support the proposed appointment” of DiNello as CEO without saying why. Dahya, who had been presiding director, resigned from the board.
The new disclosures made late Thursday are the latest twist in a monthlong saga roiling a lender that played the role of rescuer just a year ago during the 2023 regional banking crisis.
NYCB’s stock began falling on Jan. 31 when it surprised analysts by slashing its dividend, setting aside more for loan losses, and reporting a net quarterly loss of $252 million.
Now the $114 billion bank, one of the 30 largest in the US, said in a new filing that the fourth quarter loss was amended to $2.7 billion due to a new $2.4 billion “goodwill” non-cash impairment charge linked to the value of transactions that occurred at least 17 years ago.
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