Hicksville, New York – Alessandro DiNello has officially taken the reins as the new executive chairman of New York Community Bancorp. The change was made official in a recent filing with the Securities and Exchange Commission, revealing that the bank’s CEO will now report directly to DiNello.
DiNello, formerly the CEO of Flagstar Bank, stepped into the role of executive chairman following NYCB’s acquisition of Flagstar at the end of 2022. This move comes amid a series of developments within the top 30 bank, including a stock fall, dividend cut, and a net quarterly loss of $252 million.
The pressure on NYCB continued to mount as Moody’s downgraded its credit rating to junk, citing financial, risk-management, and governance challenges. While the bank shared updates showing increased deposits and ample liquidity, the board made significant changes by appointing DiNello as executive chair and accepting the resignation of board member Toan Huynh.
The bank’s decision to purchase Flagstar and absorb assets from the failed Signature Bank in 2023 pushed NYCB above $100 billion in assets, bringing heightened regulatory scrutiny. This move led to the dividend cut and additional funds set aside for future loan losses.
During a conference call, DiNello reassured analysts that the bank had the situation under control and emphasized a focus on reducing the bank’s commercial real estate concentration to rebuild confidence on Wall Street.
In addition to changes in leadership, NYCB disclosed amendments to its bylaws that cemented DiNello’s role as executive chair and outlined a process for his removal or re-election. This move signifies a significant shift in the bank’s governance structure and strategy moving forward.
DiNello’s tenure as executive chairman comes at a pivotal moment for NYCB as it navigates financial challenges and seeks to instill confidence in its investors. The revamped leadership and strategic vision will undoubtedly shape the future trajectory of the bank.