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The "dream team" of bankers who set up Greenville, S.C.-based CertusBank attracted half a billion dollars from hedge funds to buy failed banks. Lately, the focus has shifted to big losses, lavish spending and payments to a consulting firm owned by top executives.
March 27 -
CertusBank in Greenville, S.C., lost nearly $70 million last year.
February 2 -
The Greenville, S.C., company hired John Poelker as interim CEO and ousted its top executives less than two weeks after allegations of financial mismanagement surfaced. Poelker, known for stabilizing struggling banks, could be tasked with cleaning Certus up for a buyer.
April 10 -
CertusBank's chief executive, who joined the Greenville, S.C., company after its founders were fired last year, has left his post due to a medical issue.
May 8
The chief executive of CertusBank in Greenville, S.C., has officially stepped down after undergoing heart surgery.
John Poelker resigned as chairman and CEO of the $1.4 billion-asset bank, effective immediately, Certus said in a statement Tuesday. Len Davenport, who has been with the company since its founding and recently served as chief investment officer and treasurer, was named interim CEO.
Poelker, 72,
Poelker "worked tirelessly during his time with CertusBank to reposition the company as a traditional community bank," said Brad Kopp, chairman of CertusHoldings, the parent company, in Tuesday's statement. "Following his recent heart surgery, he needs to focus his time on recuperating fully."
Certus has now replaced its CEO for the second time in just over a year. Poelker, a former bank consultant who has wound down several troubled Georgia companies, was
The former leadership had overseen a period of massive losses and high expenses that had attracted a
Poelker's plan for a turnaround involved closing or selling branches, selling off side businesses and cutting staff to lower expenses. Despite lower overhead, Certus lost nearly $40 million in the first quarter of this year, after
The Office of the Comptroller of the Currency issued Certus an enforcement action last year requiring it to boost its capital ratios. Its Tier 1 ratio stood at less than 4% at March 31, though the recently completed sale of its small-business lending unit to BankUnited should improve its capital position.
Certus was founded in 2011 with $500 million in hedge-fund backing to buy failed banks throughout the Southeast.
