- After about three years in the position
- Sandro DiNello taking over
(exechange) — Hicksville, New York, February 29, 2024 — Tom Cangemi, chief executive of NYCB, leaves his position. As announced by New York Community Bancorp Inc. in a news release and in a regulatory filing published on Thursday, February 29, 2024, Thomas R. (Tom) Cangemi has left his post as chief executive officer at the regional lender, after about three years in the role, effective February 23, 2024.
Generally speaking, it raises questions when a CEO leaves his post abruptly.
Tom Cangemi’s duties as CEO will be taken over by Alessandro (Sandro) DiNello, most recently Executive Chairman at New York Community Bancorp Inc.
“Recent challenges”
NYCB did not give an explicit reason for Tom Cangemi’s departure from the CEO post. DiNello stated: “It is my mandate as President and CEO, alongside our Board, to continue our transformation into a larger, more diversified commercial bank. 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. The changes we’re making to our Board and leadership team are reflective of a new chapter that is underway.”
“Material weaknesses”
The Company further stated in a regulatory filing published on February 29, 2024: “Separately, 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. Although assessment of the Company’s internal controls is not yet complete, the Company expects to disclose in the 2023 Form 10-K that its disclosure controls and procedures and internal control over financial reporting were not effective as of December 31, 2023. The Company’s remediation plan with respect to such material weaknesses is expected to be described in the 2023 Form 10-K.”
Precise information regarding Tom Cangemi’s future plans was not immediately available.
“Stepped down/resignation”
NYCB said: “Mr. DiNello succeeds Thomas R. Cangemi, who has stepped down as President and Chief Executive Officer after 27 years with the Company. Mr. Cangemi remains on the Board.”
NYCB further said: “On February 23, 2024, Mr. Thomas R. Cangemi notified New York Community Bancorp, Inc. (the “Company” or “NYCB”) of his resignation as (a) the President and Chief Executive Officer and (b) an employee of the Company and Flagstar Bank, N.A., a wholly owned subsidiary of the Company (the “Bank”), effective immediately.”
“Not the result, in whole or in part, of any disagreement”
NYCB stated, regarding the change: “Such decision was not the result, in whole or in part, of any disagreement with the Company on any matters relating to the Company’s operations, policies or practices. Mr. Cangemi remains a member of the Board of Directors of the Company (the “Board”) and the Board of Directors of the Bank (the “Bank Board”).”
Share price decline since February 2023
The announcement follows a decline in New York Community Bancorp Inc.’s share price of 55% since February 2023.
In the position of CEO since 2020
Tom Cangemi became CEO of the Company in 2020.
Thomas R. Cangemi served as President and Chief Executive Officer of the Company and the Bank.
He was appointed President and CEO as well as Director of the Boards of the Company and the former New York Community Bank (NYCB) effective December 31, 2020, and served as Chairman of the Boards of the Company and former NYCB from March 26, 2021 to November 30, 2022.
Prior to this, Cangemi served as Senior Executive Vice President and Chief Financial Officer of the Company and former NYCB since April 5, 2005.
He joined the Company on July 31, 2001 as Executive Vice President and Director of the Capital Markets Group, and was named Senior Executive Vice President on October 31, 2003.
Prior to joining the Company, Cangemi was Executive Vice President, Chief Financial Officer, and Treasurer of both Richmond County Financial Corp. and Richmond County Savings Bank.
Before joining Richmond County in 1997, Cangemi served as Senior Vice President, Chief Financial Officer, and Corporate Secretary of Continental Bank, a commercial bank based in Garden City, New York and, previously, as Director of Corporate SEC Reporting for an electronics corporation in Boca Raton, Florida.
From 1993 to 1996, Cangemi was Vice President and Chief Financial Officer of Sunrise Bancorp, a publicly traded thrift headquartered on Long Island.
Previously, Cangemi was a member of the SEC Professional Practice Group of KPMG Peat Marwick serving financial institutions.
In January 2022, Cangemi was appointed to the Board of Directors of the Federal Home Loan Bank of New York.
Previously, Cangemi was a Board member and a member of the Development Committee of the Long Island Children’s Museum, on the Board of Directors of Friends of the Arts, a member of the Council of Overseers of the Tilles Center for the Performing Arts; and a member of the Board of Trustees of the East Woods School.
Cangemi holds a B.B.A. from the School of Professional Accountancy at Dowling College.
No statement by Tom Cangemi
The announcement of his departure as CEO does not include a statement by Tom Cangemi.
The above text is an excerpt from the exechange report 10.2024 ($), publication date March 4, 2024.