New York Community Bancorp (NYCB) tumbled nearly 20% in post-market trading on Thursday after replacing its CEO and identifying "material weaknesses" in internal controls.

Executive board chair Alessandro DiNello was named president and chief executive officer effective immediately, replacing Thomas Cangemi, who has been with the company for nearly three decades. Cangemi remains on the board.

The regional institution's shares have dropped almost 54% since the company reported earnings which showed an unexpected quarterly loss on Jan. 31. In that same report, the firm disclosed that its commercial real-estate loans were in trouble. 

“As part of management’s assessment of the company’s internal controls, management identified material weaknesses in the company’s internal controls related to internal loan review, resulting from ineffective oversight, risk assessment and monitoring activities,” the company said in a filing with the Securities and Exchange Commission Thursday.

Marshall Lux, an independent director since 2022, was named president director of the board, effective immediately, following Hanif "Wally" Dahya stepping down from that position. 

DiNello was appointed executive chairman on Feb. 6. He was previously head of Flagstar Bank, which New York Community Bank acquired last year. Flagstar bought Signature Bank assets earlier last year after that institution faltered.