Porter in Kentucky Replacing Its CEO

Porter Bancorp (PBIB) in Louisville, Ky., will replace its chairman and chief executive at the end of this month.

Maria Bouvette will retire on July 31, the $1.1 billion-asset company announced Tuesday. John Taylor will succeed Bouvette as president; W. Glenn Hogan will replace her as chairman.

Bouvette, 56, co-founded predecessor PBI Bank in 1988. She was the bank's CEO from 2005 to July 2012, when she was succeeded by Taylor.

Taylor, 53, joined Porter last year from American Founders Bank in Lexington, Ky., where he was president and CEO. Earlier, he held a series of management roles at PNC Financial (PNC).

Hogan, 51, has been a Porter director since 2006 and is the founder of a Louisville real estate company.

"We have a very strong board of directors … I believe that Glenn Hogan will be a very competent chairman," Bouvette said in a press release. "He has worked closely with John Taylor, and I believe they will continue to provide strong leadership for Porter Bancorp and PBI Bank after my retirement."

On Monday, Porter announced that a Kentucky jury had awarded $7 million to a real estate developer who claimed the company committed fraud when it backed out of a property transaction. Porter plans to appeal the verdict.

Porter has been ailing since the financial crisis. Its bank lost $33 million last year, according to the Federal Deposit Insurance Corp., and the company still owes the Treasury Department $35 million from the Troubled Asset Relief Program. Porter continues to operate under a 2011 written agreement with the Federal Reserve Board that requires it to seek regulatory approval before paying dividends or issuing debt.