HomeBusinessNYCB replaces CFO with banking industry veteran Gifford

NYCB replaces CFO with banking industry veteran Gifford

(Reuters) -New York Community Bancorp on Friday named banking industry veteran Craig Gifford as chief financial officer to succeed John Pinto as it seeks to boost investor confidence after disclosing errors in its financial reporting earlier this year.

The embattled lender did not disclose the details of Pinto’s departure in its statement, which also included a slew of other appointments to the board, including Bao Nguyen, who will replace Patrick Quinn as the company’s general counsel.

NYCB did not immediately respond to Reuters’ requests for more details.

The appointment of Gifford, who last worked at US Bancorp, follows two CEO changes at the bank now led by Joseph Otting.

NYCB has been under pressure since January when it posted a surprise loss for the fourth quarter due to higher provisions related to its exposure to the commercial real estate portfolio.

It had also cut its quarterly dividend by 70% to strengthen capital to cope with the stricter regulations imposed on banks with assets of more than $100 billion. NYCB’s acquisition of Flagstar Bank in 2022 and some assets of failed Signature Bank last year pushed the bank above that threshold.

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The stock took another hit in February when NYCB reported a fourth-quarter loss more than 10 times what it had previously indicated and disclosed financial reporting errors in filings.

However, the bank raised $1 billion last month from investors including former US Treasury Secretary Steven Mnuchin’s Liberty Strategic Capital.

Investment firms Hudson Bay Capital, Reverence Capital Partners, Citadel Global Equities, other institutional investors and certain members of the bank’s management also participated in the investment.

NYCB stock is down about 72% so far this year.

The bank also named Scott Shepherd as head of commercial real estate lending and James Simons as special advisor to the CEO on Friday.

(Reporting by Pritam Biswas in Bengaluru; Editing by Shilpi Majumdar)

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