Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

New York Community Bank Suffers Losses of $2.4 Billion

Fri 01 Mar 2024 | 07:45 AM
Taarek Refaat

New York Community Bancorp suffered a loss of $2.4 billion after it identified weaknesses in its loan review process and reduced the value of previous deals, according to Bloomberg.

The lender has appointed new leadership to navigate the turmoil.

It said, in a statement, Thursday, that Alessandro Dinello will be CEO, succeeding Thomas Cangemi. The bank also said that it needs more time to submit its annual report to regulators, as it is working to strengthen its internal controls.

The bank's shares fell 12% to $4.20 in trading after the market closed at 4:32 p.m. New York time. The stock is down 53% this year by the close of the regular trading session yesterday.

New York Community Bank said it would cut its dividend and build provisions for loan losses much larger than analysts expected, sending its stock price lower and reigniting concerns about regional banks, especially those with greater exposure to commercial real estate. The bank sought to reassure investors on a conference call earlier this month, Dinello answered most analyst questions, effectively sidelining Cangemi.

“My mission as president and CEO, along with the board, is to continue our transformation into a larger, more diversified commercial bank,” Dinello said. He added: “Although we have faced recent challenges, we are confident in the direction of our bank.”