NYCB Announces $1 Billion Investment, Leadership Changes

New York Community Bancorp (NYCB) announced a $1 billion capital investment and several leadership changes.

The new investment comes from several sources, the lender said on Wednesday (June 6). Press Release.

Liberty Strategic Capital an investment of 450 million dollars is expected, The capital of Hudson Bay will invest $250 million and Reverence Capital Partners is reportedly investing $200 million in the deal. Other institutional investors and certain members of the company’s management will make up the remainder of the $1 billion co-investment.

The move is subject to regulatory approval and other conditions, the report said.

In connection with the transaction, NYCB will add four new directors to its board, and the board will shrink to nine members, according to the release.

The new directors include Steve Mnuchinformer Secretary of the Treasury; Joseph Otting, former Comptroller of the Currency; Allen Puwalski of Hudson’s Bay; and Milton Berlinskimanaging partner of Reverence Capital, according to the report.

In addition, Otting will become CEO, replacing the current CEO Alessandro (Sandro) DiNellowho will become non-executive chairman, the report said.

Mnuchin said in a statement: “We decided to make this investment because we believe that Sandro, along with the new management, has taken the appropriate steps to stabilize the company and make NYCB a best-in-class, $100 billion-plus national bank.” . a diversified and risk-free business model that supports long-term profitability.”

DiNello said in a release that NYCB welcomes the approach investors have taken in evaluating the bank, looks forward to incorporating their insights, and views the investment as “positive support for the ongoing turnaround.”

“We enter this next chapter with a strong balance sheet and liquidity position supported by a diversified and retail-focused depository base,” said DiNello.

The news comes six days after NYCB revealed two changes in management and said it could not complete its annual report by the deadline.

In February, in 29 filings with the Securities and Exchange Commission (SEC), the bank said DiNello would succeed Thomas R. Cangemi as president and CEO after Cangemi resigned from those roles; that Cangemi will remain a member of the Board of Directors; and it Hanif (Wally) Dahya resigned from the board of directors.

NYCB reported in another February. 29 stating that it could not submit its annual report by the deadline because it discovered adjustments that needed to be made to its financial reports before the annual report was completed.

Wednesday’s news also comes about a month after NYCB announced a dividend cut and unexpected loss $260 million in the fourth quarter of 2023.

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