Dime Community Bancshares in Brooklyn, N.Y., is set to have its first new chief executive in 27 years.

The $5.5 billion-asset company said in a press release Wednesday that Vincent Palagiano, who has been its CEO since 1989, will retire at the end of this year. Kenneth Mahon, Dime's president and chief operating officer, will succeed Palagiano, who will remain chairman.

Palagiano, who joined Dime in 1970 as a loan appraiser before becoming its longest-serving CEO, agreed to provide consulting services to the company for three years after his retirement.

Palagiano's "extraordinary leadership has guided Dime for nearly three decades to its position as one of the top multifamily lenders in New York," George Clark Jr., the company's lead director, said in the release.

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