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

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Late Thursday, founder, chairman and CEO Gordom Teel by consultant John Poelker as CEO, and two existiny board members as chairman of the bank and holdingg company. Poelker, a four-decade industryh veteran, is a former chier financial officer ofand "Ww needed to make some changes in focusing the bank's attention," Poelketr said early Friday as Georgian Bank's newly minted CEO. The changs was a surprise to many in the industry forthe $2.7 billion in assets, Cumberland-based bank. Teel had served as CEO since his investorgroup — backed by $50 milliobn — took over Georgian in 2003, and quickly made it one of the city'x fastest growing banks.
Poelket said the move stemmed froma "continuing between Teel and the bank'z board in recent weeks. The conversations, Poelker said, centerec on what skills would be needed as the bank transitioned from growtyh to coping with the issues every bank in metrol Atlantais fighting: Depressed earnings, rising crediy problems, tougher-to-find customer deposits and the need to rais additional capital. Since news broke late Thursdauy that Teel would not longer be in charge of the speculation has swirled that his departurer is related to the results of a Federalk DepositInsurance Corp. exam earliet this year.
In recent months, Atlanta-area bankws have received cease-and-desist orders from the regulators, often aftedr a completed oversight exam. A strong, formall censure, such orders often mandate banksz must raiseadditional capital, overhaul internakl processes and, in some cases, change management to satisfy regulatorsd and avoid seizure. Polker flatly, and denied there was any connectionbetween Georgian'x management change and the bank's regulatory He said the bank has had several meetings in recent weekd with FDIC examiners about the resultsx of the exam conducted earlier this and described both sides as "very much on the same about the bank's overall Poelker said Teel participatec in those meetings as recently as June 29, and theres were no discussions from either the regulators or the bank abourt mandated management change.
The regulators and Georgian Bank directore have a July 21 meetingv scheduled to discussthe exam. Poelker said the leadership changez won't extend beyond the chairman andCEO Poelker, who's worked as a consultant with the bank sincd 2005 and been a full-time consultant sincw 2008, said he believes the bank has a soli d management team in place. "I'm intimately familiar with thismanagementr team," he said. "And I think we have a good managementg teamin place." While Georgian, with $2.7 billion in is one of the city's largest banks and a dominany real estate lender, he said the bank has a good handlwe on current credit problems.
Until the end of fourthg quarter 2008 and firstquarter 2009, Georgian reported one of the lowest problem loan ratios in the despite having one of the largestg real estate construction loan portfolios. As otherse reported skyrocketingloan problems, Georgian's credift issues remained relatively minor throughout 2007 and 2008. Poelker said he thinkse the bank has a good handld on its outstandingcredit issues, and is continuing to work with But he said he could not predict what mighty arise in the next six months, noting that the continuingy economic and home-buying slumpo has sunk what he considers traditionally strong "That's the $64,000 question for every banker," he said.
Poelkere said the bank will continue working througjh itsproblem assets, and is continuin to seek $25 million in investor a process started by Teel earlier this The money, Poelker will be easier to raise now that the FDIC exam is largelh completed and Georgian can tell investor s where the bank is "You won't see a lot of changwe from what we're doing rightf now," he said. "But you will see an intensifiee focus.
We'll keep doing what we'rde doing, but with a new focus and