Changing of the guard: New CEOs at banks, credit unions

September 23, 2021 6:00 AM

Chief executives at banks and credit unions of all sizes are handing control to successors who have worked their way up in those institutions or have been imported from others to bring a fresh perspective.

Gone from the executive ranks are, or soon will be, familiar faces like Kelly King at Truist Financial, Steven Bradshaw at BOK Financial and Mark Schroeder at German American Bancorp.

King’s successor, Bill Rogers, will undoubtedly be the most closely watched because Truist is the seventh-largest banking company in the country and it’s a succession that had been preordained since their former companies merged to establish Truist two years ago.

But the other transitions will be followed by investors and industry observers to see whether the new leaders can build on their predecessors’ accomplishments, maneuver their companies through still dicey economic times and ready their institutions for the technological and competitive changes ahead.

Some of the new leaders are established insiders like Stacy Kymes at BOK and Neil Dauby at German American. Others are recruits of recent years from larger companies, such as Brett Pharr at Meta Financial Group and Logan Pichel at Republic Bank & Trust.

Also notable are Jim Hayes, who is making the jump from a much smaller credit union to lead the second largest in the country, and Katie Lorenson, a chief financial officer at three banking companies who will take over for Randy Newman after his run of more than a quarter century at Alerus Financial in North Dakota.

The following are nine new, or soon-to-be, leaders of banks and credit unions announced in recent months.

Bill Rogers, Truist Financial

Bill Rogers is back in the saddle of a large regional bank after a hiatus of nearly two years.

He became CEO of the $522 billion-asset Truist, based in Charlotte, North Carolina, upon the retirement of Kelly King on Sept. 12.

The handoff had been contemplated ever since BB&T and SunTrust Banks said in early 2019 that they were planning to merge. That deal was somewhat controversial because of its size, but regulators approved it relatively painlessly, and it closed by the end of that year — just months before the start of the pandemic.

One of the most striking features of the deal was the willingness of Rogers, who had been CEO of Atlanta-based SunTrust, to move to Charlotte and serve as the No. 2 to King for an extended period. The transaction was billed as a merger of equals, but BB&T — which had been based in Winston-Salem, North Carolina — was clearly in the driver’s seat.

It appears that their arrangement has been a success.

King, in an interview with American Banker just days before handing over control to Rogers, said he did so with no second thoughts.

“We have a very well thought out transition plan that we announced way back in February 2019, and Bill Rogers, my successor, is an experienced CEO, having been CEO for eight years with SunTrust,” King said. “Of course we’ve had time to work together, so I have no reservations at all.”

The entire process has rested on their simpatico corporate cultures, King said. “When Bill Rogers and I started talking, we knew intuitively that we were already culturally aligned because we’d worked together a long time in industry associations,” he said. “We knew we had a meeting of the minds around how important purpose is in terms of creating a company that would be successful and create happiness for its teammates.”

Plenty of challenges lie ahead for Rogers. The company, like its rivals, is still trying to navigate the economic uncertainties posed by the latest surge in COVID-19 cases. And there are the less visible but fundamental priorities like the final conversion of the BB&T and SunTrust systems next spring.

When asked his advice for Rogers, King was philosophical: “Continue to focus on culture and lead the organization from a purpose point of view. … You want people to feel like they have a purpose and a passion.”

Jim Hayes, State Employees Credit Union

Veteran executive Jim Hayes has taken the reins of SECU in Raleigh, North Carolina, which at $50 billion of assets is the second largest U.S. credit union.

Hayes was most recently president and CEO of the $2.2 billion-asset Andrews Federal Credit Union in Suitland, Maryland. He holds the same titles at his new job, which came open when Mike Lord retired on Sept. 1.

Hayes has spent more than 25 years managing credit unions, was once a capital markets specialist and corporate examiner for the National Credit Union Administration and had also worked for the Office of Thrift Supervision.

“We are impressed by his knowledge of the industry and vision for the future,” SECU Chairman Bob Brinson said in a news release in August that announced the transition.

Brett Pharr, Meta Financial Group

Brett Pharr is set to take over as CEO of the $7.1 billion-asset Meta in Sioux Falls, South Dakota, on Oct. 1.

He is a veteran of Bank of America and Citizens Financial Group who joined Meta in 2019 and became co-president and chief operating officer last year.

Pharr will succeed Brad Hanson, who surprised investors this month by announcing plans to step down and pursue entrepreneurial activities that are expected to include work with Meta’s venture capital arm. Hanson was instrumental in Meta’s rise as a major issuer of reloadable prepaid cards to unbanked consumers.

The Internal Revenue Service early this year selected MetaBank to deliver the second round of federal stimulus payments during the pandemic via 8 million prepaid cards for unbanked consumers.

“Meta has a deep bench of experienced and highly qualified senior-level executives, and we are pleased to appoint Brett to the role of CEO and to our boards,” Douglas Hajek, chairman of Meta’s board of directors, said in a press release in early September.

Logan Pichel, Republic Bank & Trust

Logan Pichel, who joined the $6.2 billion-asset Republic in Louisville, Kentucky, as president last year, will add the title of CEO on Oct. 1

The bank said last week that — as part of a previously signaled plan — Pichel will succeed Steve Traiger, who will remain chairman and CEO of the bank’s holding company, Republic Bancorp.

Pichel was also elected to the bank’s board, as well as the board of the holding company.

“Logan's leadership and influence has enhanced every aspect of the bank’s culture and operations since joining the Republic team as president 15 months ago," Trager said in a news release. "I am excited for the next phase in the growth of Republic as I continue to work closely with him.”

Pichel previously worked at Regions Financial in Birmingham, Alabama, where he led corporate development, financial planning and analysis, and mergers and acquisitions.

Neil Dauby, German American Bancorp

Neil Dauby is slated to take over as CEO of the Jasper, Indiana, banking company on Jan. 1.

One of his key tasks is expected to be integration of the $5.3 billion-asset company’s acquisition of Citizens Union Bancorp in Shelbyville, Kentucky. The $154 million deal, announced Tuesday, is aimed at giving German American top-10 market share in the Louisville area. The transaction, set to be completed in the first quarter, would add 11 branches and $703 million of deposits to the company’s existing Louisville presence, creating a pro forma total of 16 branches and $963 million of deposits.

Dauby, currently president and chief operating officer, will succeed Mark Schroeder, who is stepping down as CEO after more than two decades on the job and will become executive chairman. Dauby has worked at German American since 2001; he served five years as executive vice president and chief commercial banking officer before becoming COO in January.

Piper Sandler Analyst Nicholas Cucharale recently described German American as one of the best banks he covers. “We know Mr. Dauby and believe he will be an excellent successor,” Cucharale said. “We have every reason to believe in his ability to keep German American on a strong trajectory.”

Isaac Johnson, Texas Dow Employees Credit Union

Isaac Johnson became president and CEO of the $4.4 billion-asset Texas Dow Employees Credit Union in Lake Jackson in June.

He had been interim CEO since April, when Stephanie Sherrodd stepped down from the role. Sherrodd, who spent nearly 17 years at the credit union, including the last nine as CEO, left to pursue other opportunities.

Johnson was chief administrative, legal and diversity officer before being named interim chief executive.

Previously, he worked for USAA, Wells Fargo and Trustmark National Bank. He also is a brigadier general commanding the 351st Civil Affairs Command in the United States Army Reserve.

Johnson said when is appointment was made permanent that he was “energized by TDECU’s commitment to providing the best member experience whenever and wherever we help people navigate their financial journey.”

Katie Lorenson, Alerus Financial

On Jan. 1, Katie Lorenson is set to become the first new CEO at the $3.2 billion-asset Alerus, formerly the First National Bank of North Dakota, in nearly 27 years.

She will succeed Randy Newman, who plans to stay on as executive chairman.

Lorenson, currently executive vice president and chief financial officer, is “an excellent and clear successor,” Piper Sandler analyst Nathan Race wrote in a research note this week. She is well known among investors after spearheading the company’s initial public offering in 2019 and has assumed great companywide responsibilities over time, according to Race. She leads Alerus’ principal business segments of banking, retirement and benefits services, wealth management and mortgage lending.

The Grand Forks, North Dakota, company hired Lorenson as CFO in 2017, and before that she held the same position at MidWestOne Financial Group in Iowa City, Iowa, and Central Bancshares in Golden Valley, Minnesota.

“Together with the Alerus leadership team and our employees, I plan to continue building on the strong foundation already in place,” Lorenson said. She pledged to work with Newman to “grow the company by executing our strategic mission to deliver holistic [financial] advice, with unparalleled service and engaging technology.”

James Kim, Central Valley Community Bancorp

James Kim was promoted to CEO of the holding company of the $2.3 billion-asset Central Valley Community Bank in Fresno, Calif., this month. He succeeded James Ford, who retired after six years as chief executive; the bank’s assets doubled during Ford’s tenure.

Kim joined Central Valley in 2018 as chief administrative officer and promoted him to chief operating officer a year later. Previously he had spent 10 years at Community 1^st Bancorp in Auburn, California, including three years as CEO. He oversaw the $50 million sale of Community 1^st to First Foundation in late 2017.

Kim, who will also be president and CEO of the bank unit, was the “best choice” to succeed Ford, Timothy Coffey, who covers Central Valley for Janney Montgomery Scott, wrote in a research note following the announcement. “He is well-regarded and has prior experience as a CEO, chief financial officer and chief administrative officer,” Coffey said.