New York Community Bancorp (NYCB), a mid-sized bank struggling with precarious commercial loans and troubles with its acquisition of the failed Signature Bank last year, named a new chief risk officer and chief audit executive.
George Buchanan III was named the bank’s executive vice president and chief risk officer, while Colleen McCullum was named executive vice president and chief audit executive, according to a press release Friday. The appointments are effective immediately.
NYCB is parent company of Flagstar Bank, a regional bank operating 420 branches. As of Dec. 31, the bank said it has $113.9 billion in assets, $85.8 billion of loans, deposits of $81.4 billion, and total stockholders’ equity of $8.4 billion.
On Thursday, the bank disclosed in a regulatory filing that its management “identified material weaknesses in the company’s internal controls related to internal loan review, resulting from ineffective oversight, risk assessment, and monitoring activities.” It continued that it expects to disclose its internal control over financial reporting was not effective as of Dec. 31.
Board Executive Chairman Alessandro DiNello, who was appointed as the bank’s president and chief executive officer on Thursday, said the bank is taking the necessary steps to address the weaknesses, including appointing new executives.
“Our allowance for credit losses considered these weaknesses and is not expected to change,” DiNello said in Friday’s release. “The company has strong liquidity and a solid deposit base, and I am confident we will execute on our turnaround plan to deliver increased shareholder value.”
Buchanan brings more than 30 years of financial services-related risk management and credit experience, including at First Union, AmSouth Bank, US Bank, and Regions Bank. McCullum joins from United Community Bank, where she was chief audit executive, and previously worked at Capital One, Bank of America, and Wells Fargo.
NYCB acquired certain assets and liabilities of Signature Bank in March 2023 but has recently seen its stock price plummet amid shareholder concerns about its ability to keep the doors open. The bank’s stock was trading at $10 per share on Jan. 30 but dropped to $3.02 per share at the start of trading Monday.
No comments yet