Current:Home > NewsNew York Community Bancorp shares plummet amid CEO exit and loan woes -ProfitLogic
New York Community Bancorp shares plummet amid CEO exit and loan woes
View
Date:2025-04-21 12:55:57
Shares of New York Community Bancorp plunged by double digits on Friday after the sudden exit of the regional bank's longtime president and CEO. The departure coincides with the bank's disclosure of "material weaknesses" related to loans.
Thomas Cangemi relinquished his leadership roles at the bank after 27 years, with Alessandro DiNello, who serves as its board's executive chairman, succeeding him, the bank said in a statement late Thursday. The bank also said in a regulatory filing that it had discovered "material weaknesses" in loan controls and took a $2.4 billion charge.
After plummeting almost 30% at Friday's start, shares of the Hicksville, N.Y.-based commercial real estate lender bank were lately down nearly 23%, and have lost more than half their value this year.
The bank — a major lender to New York City apartment landlords — is not able to file its annual report with the Securities and Exchange Commission, and will have to amend its fourth-quarter results, it said in the Thursday notice to regulators.
"As part of management's assessment of the company's internal controls, management identified material weaknesses in the company's internal controls related to internal loan review, resulting from ineffective oversight, risk assessment and monitoring activities," the bank said in the filing.
The developments come after the company in January said it was stockpiling cash in the event of possible loan troubles.
No banking crisis, analyst says
NYCB's struggles come nearly a year after three midsize lenders were seized by regulators after deposit runs, with the Federal Deposit Insurance Corp. then selling off the assets of the collapsed entities. Following those bank failures, NYCB subsidiary absorbed the deposits and some loans from one of the institutions, Signature Bank.
Yet while NYCB's struggles could be viewed as a warning sign for other regional banks or lenders with sizable commercial real estate loan portfolios, one analyst is pushing back on the idea.
"A lot of the issues are NYCB-specific when it comes to multi-family lending," Steve Moss of Raymond James told CBS News.
He added that NYCB's problems are unrelated to it acquiring Signature's assets, noting that NYCB appears to have been issuing a lot of interest-only loans, without equity from borrowers. Moss also thinks the bank can work through its current woes.
"There is coverage for uninsured deposits, they should have the liquidity to manage through this difficult time," he said.
Kate GibsonKate Gibson is a reporter for CBS MoneyWatch in New York.
veryGood! (31)
Related
- Working Well: When holidays present rude customers, taking breaks and the high road preserve peace
- Kendall Jenner Reflects on Being a Baby at Start of Modeling Career
- What the Joe Rogan podcast controversy says about the online misinformation ecosystem
- Facebook bans 7 'surveillance-for-hire' companies that spied on 50,000 users
- McConnell absent from Senate on Thursday as he recovers from fall in Capitol
- Transcript: Former Vice President Mike Pence on Face the Nation, April 23, 2023
- 9 people trying to enter U.S. from Canada rescued from sub-freezing bog
- One of King Charles' relatives pushes for U.K. families that profited from slavery to make amends
- What to watch: O Jolie night
- Singer Bobby Caldwell Dead at 71
Ranking
- House passes bill to add 66 new federal judgeships, but prospects murky after Biden veto threat
- If you're clinging to an old BlackBerry, it will officially stop working on Jan. 4
- 2023 Coachella & Stagecoach Packing Guide: Trendy Festival Tops to Help You Beat the Heat
- Sudan fighting brings huge biological risk as lab holding samples of deadly diseases occupied, WHO warns
- Why members of two of EPA's influential science advisory committees were let go
- Paris Hilton Hilariously Calls Out Mom Kathy Hilton for Showing Up “Unannounced” to See Baby Phoenix
- Inside Superman & Lois' Whirlwind of Replacing Jordan Elsass With Michael Bishop
- Why The Bachelor's Eliminated Contender Says Her Dismissal Makes No F--king Sense
Recommendation
From family road trips to travel woes: Americans are navigating skyrocketing holiday costs
Hearing Impaired The Voice Contestant Blows Coaches Away During Blind Audition
From living rooms to landfills, some holiday shopping returns take a 'very sad path'
1 American dead in Sudan as U.S. readies troops for potential embassy evacuation amid heavy fighting
At site of suspected mass killings, Syrians recall horrors, hope for answers
With 'Legends: Arceus,' Pokémon becomes a more immersive game
Have you used Buy Now Pay Later? Tell us how it went
Which skin color emoji should you use? The answer can be more complex than you think