The Providence, Rhode Island-based regional lender named Michael Cherny as head of Citizens Wealth Management Advisors and Tom Metzger as head of Citizens Private Wealth Managers.

Regional bank stocks have been roiled in recent days after New York Community Bancorp posted a surprise quarterly loss. Though Citizens' shares fell as part of a broader selloff, its executives remain confident the banking sector remains strong.

"The market has found confidence that not all regional banks are created equal," Brendan Coughlin, head of consumer banking at Citizens, said in an interview. "I don't expect any contagion whatsoever from this across the banking ecosystem," he added.

Citizens posted last month a 71% drop in fourth-quarter profit due to a one-time charge to refill a government deposit insurance fund and warned its net interest income could fall this year.

Cherny will be responsible for retaining and growing relationships with high net worth clients. He previously served as managing director of wealth at JPMorgan Chase.

Metzger, a 17-year industry veteran, will recruit and lead a new team of private wealth managers targeting new clients in key geographies across the United States.

Citizens also said it plans to open additional offices focused on private banking in 2024 in Palm Beach, Florida and Mill Valley, California.

The lender launched the new private bank last year and hired 200 employees, including bankers from First Republic Bank, which failed last year and was later bought by JPMorgan.

Private banking services include wealth management, investing, portfolio management and estate planning to high net worth clients.

Citizens' new offices will also offer branded umbrellas and freshly-baked cookies for which First Republic was known.

Citizens said last month its private bank "is making good progress" and successful execution of the business will "meaningfully bolster" earnings per share and returns.

(Reporting by Saeed Azhar and Lananh Nguyen in New York and Manya Saini in Bengaluru; Editing by Jamie Freed)

By Saeed Azhar and Lananh Nguyen