The top leadership at CertusBank has been terminated and an interim CEO named, the bank announced Wednesday.
Milton Jones, Walter Davis and Angela Webb were terminated from their respective posts as executive chairman, CEO and president, and banking veteran John Poelker of Atlanta was appointed interim president and CEO of the bank.
Board Chairman Bob Wright said in an internal memo addressed to the staff, known as “teammates,” that the board had made the decision earlier that day.
Wright himself had replaced Jones as board chairman. In the memo, he went on to endorse Poelker, who since 2005 has served as president of The Poelker Consultancy Inc., an Atlanta-based firm that provides strategic and advisory services to financial services organizations.
The upheaval of Certus’ top brass began with last week’s resignation of cofounder and vice chairman Charles Williams. He stepped down just days after a report by industry magazine American Banker alleging egregious mismanagement at the company. He later told the Charlotte Business Journal that his resignation was not a response to allegations of improper spending, but a “strategic decision.”
American Banker detailed many of the concerns members of the local banking community have shared with the Upstate Business Journal in recent months, though they have asked not to be named. They have expressed concern and sadness over CertusBank’s troubles.
Indeed, FDIC reports show multiple quarters of financial losses coupled with increasing expenses. American Banker said it reviewed documents that showed nearly $3.5 million in spending on executive apartments, Carolina Panthers games, American Express bills and other items and services, in addition to several hundred thousand dollars for sponsorships and charitable gifts.
The report also said the bank paid $9.7 million to a Charlotte-based consulting firm, Integrated Capital Strategies (ICS), that was founded by Davis and Williams in 2009.
The crux of the matter is that the spending coincides with poor performance in several areas. One banker who had reviewed Certus’ financials told UBJ that the bank currently is spending $1.80 for each dollar it earns.
Certus responded to the report with a statement saying the board would launch its own investigation into the allegations. Webb and Jones expressed their frustrations to the Charlotte Business Journal, which clarified and refuted more than half a dozen of the allegations. It said, for example, that ICS was in fact a “launchpad” for the creation of CertusBank, an arrangement approved by investors and regulators.
Senior staff at the bank could not be reached for further comment before their departures and terminations.
According to a press release from Certus, interim CEO Poelker has more than 40 years of experience in commercial banking and consumer finance. He served as chief financial officer of Atlanta-based State Bank Financial Corp., and CEO of Myrtle Beach, S.C.-based Beach First National Bank and Atlanta-based Georgian Bancorporation Inc. From 1998 to 2005, Poelker was executive vice president and chief financial officer of Old National Bancorp in Evansville, Ind., a $9 billion commercial banking holding company with 120 branches in five Midwestern states.
“I look forward to working with everyone at CertusBank to strengthen the company for the future. My goals are to listen, learn and lead – in that order,” said Poelker in a statement announcing his appointment as CEO. “As we assess the state of the bank, we will remain focused on doing the right thing for our customers and working openly with all of our stakeholders. I am energized about this opportunity and eager to get started.”
“John Poelker has the utmost respect within the banking industry and CertusBank’s unequivocal support and confidence,” said Wright. “On behalf of our board, I am proud to welcome John to the CertusBank team and have his knowledge and experience navigating the steps we will take to move our bank forward the right way, in a direction that is best for CertusBank’s future stability and growth.”
