The tumult surrounding commercial real estate lender New York Community Bancorp (NYSE:NYCB) became more severe with the resignation of CEO Thomas Cangemi and the announcement that its fourth quarter loss was amended to $2.7 billion, a tenfold increase from its previously declared $252 million net loss.
According to combined media reports, Cangemi has been replaced by Executive Chairman Alessandro DiNello, who became the de facto leader of Hicksville, New York-based bank following a change to its bylaws last month. DiNello was previously the CEO of Troy, Mich.-based Flagstar Bank, which NYCB acquired in late 2022. But DiNello’s appointment sparked the resignation of Hanif “Wally” Dahya, a member of the NYCB board – another director, Toan Huynh, quit on Feb. 6. Cangemi will retain his board position while Marshall Lux, an independent director since 2022, was named as the new presiding director.
“While we’ve 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,” DiNello said in a press statement. “The changes we’re making to our board and leadership team are reflective of a new chapter that is underway.”
NYCB has more than $100 billion in assets but has struggled in the wake of its 2023 takeover of the assets from the failed Signature Bank and the merger with Flagstar Bank. NYCB’s woes began to percolate on Jan. 31 when it announced it would be cutting its dividend while it was putting aside $552 million to address losses stemming from its commercial real estate lending. The bank’s stock performance has since weakened, sparking a debate among financial analysts over whether NYCB’s problems were an anomaly or the proverbial tip of the iceberg regarding banking industry exposure to commercial real estate risks.
