NYCB Announces Leadership Changes, Delays Annual Report

New York Community Bancorp (NYCB) has announced leadership changes in the CEO role and a board position.

These changes came on the same day the bank said it could not complete its annual report by the due date, according to the company’s Thursday (Feb. 29) filings with the Securities and Exchange Commission (SEC).

In one filing, NYCB said President and CEO Thomas R. Cangemi resigned Feb. 23, effective immediately. He remains a member of the board of directors.

NYCB said in the filing that Cangemi’s resignation was not the result of any disagreement with the company.

On Sunday (Feb. 25), the board and bank board appointed the executive chairman of the board and the bank board, Alessandro (Sandro) DiNello, to succeed Cangemi as president and CEO, effective Thursday (Feb. 29).

“It is my mandate as president and CEO, alongside our board, to continue our transformation into a larger, more diversified commercial bank,” DiNello said in a Thursday press release. “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. The changes we’re making to our board and leadership team are reflective of a new chapter that is underway.”

In another leadership change, the company said in the SEC filing that Hanif (Wally) Dahya resigned as presiding director of the board and a member of the board and the bank board on Sunday, effective immediately.

“At the time of my resignation I did not support the proposed appointment of Mr. DiNello as president and CEO of the company,” Dahya said in a resignation letter attached to the filing.

On Monday (Feb. 26), the board appointed Marshall Lux, a member of the board and the bank board, to succeed Dahya as presiding director of the board.

In another Thursday filing with the SEC, NYCB said it is unable to file its annual report by the due date because it discovered adjustments that must be made to its financial reports prior to completing the annual report.

Separately, the company said in the filing that “management identified material weaknesses in the company’s internal controls related to internal loan review, resulting from ineffective oversight, risk assessment and monitoring activities.”

These announcements come about a month after NYCB reported a dividend cut and an unexpected loss of $260 million in the fourth quarter of 2023, compared to a gain of $164 million in the same period the previous year.

Bank executives attributed the loss to a rise in expected loan losses, particularly from loans tied to office buildings.