New York Community Bancorp faces mounting woes as CEO exits, revises losses higher

(Reuters) - New York Community Bancorp (NYSE:NYCB) replaced its CEO,disclosed a $2.4 billion goodwill impairment hit and said it had identified "material weaknesses" in internal controls tied to its review of loans, sending its shares tumbling on Friday.

On Jan. 31, the lender cut its dividend and recorded a surprise quarterly loss, prompting a series of downgrades and sparking an over 60% drop in shares.

Here is a timeline of key events surrounding NYCB:

Date Development

March NYCB subsidiary Flagstar Bank enters agreement with

19, 2023 U.S. regulators to buy deposits and loans from

failed lender Signature Bank (OTC:SBNY).

Jan. 31 NYCB shares slump 37.7% after the lender slashed

its dividend by 70% and posted a surprise loss for

the fourth quarter, pressured by stress in its CRE

portfolio.

Moody's (NYSE:MCO) places all long-term and short-term ratings

as well as assessments of NYCB and its subsidiary

Flagstar Bank on review for a downgrade.

Feb. 1 NYCB shares tumble another 11.1%, dragging down

U.S. regional bank stocks amid a frenzied selling

in banking shares. Bank says it believes stock

price will recover as the market sees "value

enhancing actions" being taken.

Feb. 2 The bank's shares enjoy a reprieve, inching up 5%

after sinking 45% in the past two sessions. After

market close, Fitch downgrades long-term issuer

default ratings for NYCB and its subsidiary

Flagstar Bank.

Feb. 5 Shares of NYCB resume descent. NYCB confirms its

chief risk officer Nick Munson had left the company

after a report from the Financial Times.

Feb. 6 U.S. Treasury Secretary Janet Yellen tells a House

Financial Services Committee hearing that she was

concerned about looming CRE stresses on banks, but

believed the situation is manageable with

assistance from banking regulators.

Shareholders file a class action suit accusing the

regional bank of defrauding them by failing to

disclose that it would set aside more money for

credit losses.

Moody's downgrades all long-term and some

short-term issuer ratings of NYCB as well as

assessments of its subsidiary Flagstar Bank to junk

and warned of further downgrades.

NYCB says total deposits rose slightly to $83

billion as of Feb 5. compared to $81.4 billion at

the end of 2023. Adds that it is in the process of

bringing in a new chief risk officer and chief

audit executive.

Feb. 7 Analysts express concerns about "governance risks",

citing the bank's choice to not disclose the

departure of key executives earlier, but cheer the

strong liquidity position.

NYCB names banking veteran Alessandro DiNello as

its executive chairman and vowed to cut down the

lender's exposure to the troubled CRE segment.

Feb. 8 Morningstar DBRS downgrades NYCB's credit rating to

"BBB" from "BBB (high)," citing the lender's

"outsized" exposure to commercial real estate loans

compared to its peers.

Feb. 9 Top executives of the bank, including newly

appointed executive chairman, disclose they bought

stakes in NYCB, helping its stock rally.

Names

Feb DiNello as CEO and revises

29 fourth-quarter loss to $2.7 billion, more than 10

times what it previously stated. Identifies

material weaknesses in the company's internal

controls" and delays annual report.

Sources: Company statements, conference call, media reports