The Bank Slate


New York Community discloses Cangemi departure, big goodwill charge

New York Community Bancorp in Hicksville said that Thomas Cangemi had resigned as president and CEO, it had identified a material weakness, and that a goodwill impairment charge had deepened its fourth-quarter loss by $2.4 billion.

The $116.3 billion-asset company disclosed in a regulatory filing that Cangemi will remain on its board. His departure “was not the result, in whole or in part, of any disagreement with the company on any matters relating to … operations, policies or practices.”

The board appointed Sandro DiNello to succeed Cangemi. DiNello had recently been appointed executive chairman with Cangemi reporting to him.

“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 statement. “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.”

Separately, Wally Dahya resigned from the board. Dahya noted that did not support appointing DiNello to become president and CEO. Marshall Lux, a director, was selected to replace Dahya as presiding director and chairman of the nominating and corporate governance committees.

Finally, New York Community restated its fourth-quarter results to reflect a goodwill impairment charge. The charge, which increased the quarterly loss to $2.7 billion, is tied to acquisitions from 2007 and earlier.

New York Community also adjusted the fixed assets acquired from the failed Signature Bank downward by $19 million and it paid another $10 million to recover losses to the FDIC’s Deposit Insurance Fund.

The company also discovered material weaknesses in its internal controls related to internal loan review and resulting from ineffective oversight, risk assessment and monitoring activities. The company’s remediation plan is expected to be described in its annual filing.

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