PriyaPatelTLDR: Concerns about New York Community mount after chief risk officer’s exit
Nearly a week after New York Community Bancorp’s fourth-quarter earnings report triggered a substantial decline in the company’s stock price and deepened a sense of wariness about its loan portfolio, industry observers are now watching for signs of deterioration in its deposit base.
A spokesperson for New York Community — which crossed the $100 billion-asset threshold in late March 2023 when it acquired large chunks of the failed Signature Bank — confirmed Monday night in an email that Nicholas Munson, the company’s chief risk officer since 2019, left “in early 2024.”
As the chief risk officer, he was responsible for “designing, implementing and maintaining an effective risk management program that aligns to applicable regulatory guidance and is commensurate with the company’s size, scope and complexity,” the biography read.
Deposits totaled $81.4 billion as of Dec. 31, 2023, a decline of 2% from the prior quarter.
Summary
New York Community Bancorp is facing mounting concerns after the departure of its chief risk officer, Nicholas Munson. Observers are now keeping a close eye on the bank’s deposit base. It is not clear who is currently overseeing risk management operations at the bank or if the role will be filled on a permanent basis. Analysts believe that New York Community will move quickly to hire a new chief risk officer. The bank recently reported a quarterly net loss of $260m and reduced its dividend by 70%. The decline in stock price has increased the chance of depositors leaving the bank.
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