New York Community Bancorp Inc.’s stock fell sharply Thursday after the bank said it had “material weaknesses” in its accounting protocols and announced an immediate leadership shakeup — the latest difficulties for a bank struggling with exposure to an ailing commercial real-estate market. Shares of the company — which operates Flagstar Bank in several states and picked up some of the leftovers from the failed Signature Bank last year — dropped 17.8% after hours. New York Community Bancorp NYCB, +5.51% said it had appointed Alessandro DiNello as its new chief executive, a decision that took effect immediately after Thomas Cangemi resigned from the role after 27 years there. Cangemi resigned on Feb. 23.

The leadership change came with some resistance among the company’s board. Hanif Dahya also resigned as presiding director and as a board member, saying in his resignation letter that he “did not support the proposed appointment” of DiNello. Marshall Lux has been named presiding director of the board, effective immediately.

“It is my mandate as president and CEO, alongside our board, to continue our transformation into a larger, more diversified commercial bank,” DiNello said in a statement.

“While we’ve faced recent challenges, we are confident in the direction of our bank and our ability to deliver for our customers, employees and shareholders in the long term,” he said. “The changes we’re making to our board and leadership team are reflective of a new chapter that is underway.”

Source: N.Y. Community Bank shares fall on CEO change, ‘material weakness’ notice – MarketWatch