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The turmoil at New York Community Bancorp continued Thursday with announcements that sent shares down 20%.
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It appointed a new CEO and disclosed “material weaknesses” relating to how it reviews loans.
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The news came about a year after NYCB acquired assets from the defunct Signature Bank.
The turmoil at New York Community Bancorp is getting worse.
On Thursday, the Long Island bank released several announcements that spooked investors — who were already on edge since the lender reported a surprise net loss on January 31.
NYCB also appointed a new CEO, Alessandro DiNello, who succeeded Thomas Cangemi immediately.
More worryingly, it added in regulatory filings that its management “identified material weaknesses in the Company’s internal controls related to internal loan review.” The bank attributed the problems to “ineffective oversight, risk assessment, and monitoring activities.”
The lender is also retroactively booking a $2.4 billion goodwill impairment charge in the fourth quarter and said it would file its 2023 annual report late because it was still assessing its internal controls.
The string of disclosures sent NYCB shares 20% lower in after-hours trade. The stock is 53% lower this year to date after crashing as much as 60% over the same period.
The turmoil comes about a year after NYCB acquired assets from the defunct Signature Bank, which failed shortly after the implosion of Silicon Valley Bank.
This acquisition made NYCB so big its assets breached the $100 billion…
