Executive expands role in bank's senior leadership overhaul
New York Community Bancorp. (NYCB) has appointed Joseph Otting as executive chairman of the board and its subsidiary Flagstar Bank, part of an overhaul of the bank’s leadership team.
Otting will take on the new position in addition to his existing roles as president and CEO. His expanded role becomes effective June 5, allowing him to “better facilitate his ability, alongside the new senior executive leadership team, to continue to improve all aspects of the company’s operations and execute on its strategic initiatives,” NYCB said in a statement.
Alessandro DiNello will step down as non-executive chairman the same day but remain a director and senior advisor supporting Otting and the new executive team following NYCB’s recent $2 billion capital raise.
Read more: NYCB to sell $5bn in warehouse mortgage loans to JPMorgan
“He will continue to support Mr. Otting and the rest of the senior executive leadership team as they continue to turn the bank around following the March 2024 capital raise,” the company said of DiNello’s advisory role.
Otting, the former head of OneWest Bank and past US Comptroller of the Currency, took over as NYCB’s president and CEO on April 1.
His chairmanship caps a series of major leadership changes at the regional banking giant, which also recently named new executives, including Craig Gifford as chief financial officer, Bao Nguyen as general counsel, Scott Shepherd as head of commercial real estate lending, and James Simons as a special advisor to Otting.
“Their collective expertise and deep industry knowledge will be instrumental in driving our strategic initiatives forward and solidifying our position as a leading regional bank,” Otting said of the new executive hires.
The revamped leadership team faces the critical task of stabilizing and repositioning NYCB’s operations following deposit outflows, forcing it to raise $2 billion in capital in March to shore up liquidity.
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