Flagstar Bancorp in Troy, Mich., which has been under pressure from regulators in recent months, has hired a new chief financial officer.

The $9.6 billion-asset company said in a press release Tuesday that it had hired James Ciroli. He recently served as corporate controller at the $38 billion-asset First Niagara Financial in Buffalo, N.Y.

The hiring comes shortly after Flagstar agreed to pay a $37.5 million fine from the Consumer Financial Protection Bureau tied to allegations the company failed to provide foreclosure relief to struggling borrowers.

Flagstar reported a third-quarter loss of $27.6 million, mostly due to the fine. The company also saw a 20% decline in assets from a year earlier, as it continues to shrink its balance sheet.

Ciroli succeeds Paul Borja, who is now Flagstar's senior deputy general counsel.

Separately, First Niagara said on Tuesday that Brian Dempsey has been appointed to succeed Ciroli as controller.

Dempsey will also serve as First Niagara's principal accounting officer, reporting to Chief Financial Officer Gregory Norwood. He joined the bank in 2009, and most recently served as director of finance accounting.

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