Georgian Bank leadership changes part of strategy shift - Atlanta Business Chronicle:

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Late Thursday, founder, chairman and CEO Gordon Teel by consultangt John Poelkeras CEO, and two existinyg board members as chairman of the bank and holding company. a four-decade industry veteran, is a former chief financial office r ofand "We needed to make some changeds in focusing the bank's attention," Poelker said early Friday as Georgian Bank'sd newly minted CEO. The change was a surprise to many in the industru forthe $2.7 billion in Cumberland-based bank. Teel had served as CEO since his investo rgroup — backed by $50 milliobn — took over Georgian in 2003, and quicklyt made it one of the city's fastesy growing banks.
Poelker said the move stemmee froma "continuing dialogue" between Teel and the bank'sx board in recent weeks. The conversations, Poelkerr said, centered on what skille would be needed as the bank transitionee from growth to coping with the issue every bank in metro Atlantzis fighting: Depressed earnings, rising credit problems, tougher-to-fin customer deposits and the need to raisr additional capital. Since news broke late Thursday that Teel would not longer be in charge ofthe bank, speculation has swirled that his departures is related to the results of a Federal Deposir Insurance Corp. exam earlier this year.
In recent Atlanta-area banks have receivee cease-and-desist orders from the often after a completed oversight A strong, formal censure, such ordera often mandate banks must raise additional capital, overhaul internal processes and, in some change management to satisfy regulatorsz and avoid seizure. Polker flatly, and strongly, denied there was any connectio nbetween Georgian's management change and the bank's regulatorgy review. He said the bank has had several meeting in recent weeks with FDIC examiners abougt the results of the exam conducted earlier this and described both sidesas "vert much on the same page," abou t the bank's overall health.
Poelker said Teel participated in thosde meetings as recently asJune 29, and ther e were no discussions from eithetr the regulators or the bank aboutg mandated management change. The regulatorsa and Georgian Bank directors have a July 21 meetingf scheduled to discussthe exam. Poelker said the leadershi p changes won't extend beyond the chairman andCEO positions. Poelker, who'xs worked as a consultant with the bank sinces 2005 and beena full-time consultant since 2008, said he believes the bank has a solis management team in place. "I'm intimately familiaf with thismanagement team," he "And I think we have a good management team in While Georgian, with $2.
7 billion in assets, is one of the city'sa largest banks and a dominant real estatre lender, he said the bank has a good handle on currengt credit problems. Until the end of fourth quarterf 2008 and firstquarter 2009, Georgian reported one of the lowesft problem loan ratios in the state, despite havingg one of the largest real estate constructiojn loan portfolios. As others reportedr skyrocketingloan problems, Georgian's credit issues remained relatively minor throughout 2007 and 2008. Poelke r said he thinks the bank has a good handlew on its outstandingcredit issues, and is continuin to work with borrowers.
But he said he could not predict what mighr arise in the next six noting that the continuing economixand home-buying slump has sunk what he considers traditionally strontg borrowers. "That's the $64,000 question for every banker," he said. Poelker said the bank will continu working through itsproblem assets, and is continuing to seek $25 million in investor capital, a procesa started by Teel earlier this spring. The Poelker said, will be easier to raise now that the FDIC exam is largel completed and Georgian can tell investors where the bankis headed. "Yoiu won't see a lot of changse from what we're doint right now," he said.
"But you will see an intensified We'll keep doing what we're but with a new focu and aggression."