Three days after announcing that it lost $31.9 million last quarter, Integrity Bancshares of Alpharetta, Ga., said Monday that it has hired former banking regulator Patrick M. Frawley as its president and chief executive officer.
He succeeds Harold A. "Kelly" Klem, the company's chief operating officer. Mr. Klem had been interim president and CEO since Aug. 20, when Steven M. Skow was fired.
The $1.3 billion-asset Integrity gave no reason for terminating Mr. Skow but said at the time that its loan policies were under review by its regulators and that it had received notice from Nasdaq stating that its stock was subject to delisting because it had yet to file its second-quarter earnings report.
In its Friday earnings release, Integrity attributed its second-quarter loss almost entirely to a $31 million chargeoff related to one borrower.
It reported earnings of $2.8 million for the second quarter of 2006. On a per-share basis it lost $2.06, compared with a profit of 18 cents a share in the year-earlier period.
Charles J. Puckett, Integrity's chairman, said in a press release announcing the hiring of Mr. Frawley, "After careful deliberation of Pat's capabilities, we concluded that his broad banking regulatory experience with both large and small financial institutions, together with his specific experience in working with institutions that have experienced operational challenges, makes him well qualified for the position."
Mr. Frawley began his banking career with Office of the Comptroller of Currency in 1973 and held various positions in his 13 years there, including director of bank supervision for the Southeast.
He worked at banks of all sizes over the next 16 years, and in 2002 was recruited by Community Bank in Blountville, Ala., "to restore investor confidence and fix the bank's operational deficiencies," according to Integrity's news release.
Mr. Frawley became Community's chairman and CEO in early 2003. After it was acquired by the $2.4 billion-asset Superior Bancorp last year, he became the chairman of Superior's North Alabama region.
Integrity, the holding company for the seven-year-old Integrity Bank, went public in 2004.
Mr. Frawley said in Monday's press release that Integrity's infrastructure has been strained by its rapid growth and an economic slowdown in its market north of Atlanta.
He said he intends "to set new strategies in motion, reassess processes, systems, and controls, expand products and services, enhance corporate governance, and take the necessary actions to restore peer-level performance and market value."
Integrity's shares were trading at $4.54 Monday. They are down roughly 65% for the year.
