First NBC Bank in New Orleans, which has been dealing with issues tied to its tax-credit business and concerns about capital, has removed its chief executive.
Ashton Ryan, who helped found the $4.9 billion-asset company, will remain president. The move took place just two days before the company's rescheduled annual meeting.
Hermann Moyse III was named interim CEO. Moyse, a founding director, has been the chairman of First NBC's bank since September. He previously served in a number of executive posts at City National Bank of Baton Rouge in Louisiana, which was sold to Bank One in 1998. He then helped found Alliance Bank of Baton Rouge, serving on its board until it was bought by Iberiabank in 2004.
The company said that Marsha Crowle, its chief compliance officer, had taken on the added role of interim chief operating officer.
The appointments require regulatory approval.
First NBC said in a press release that the change was made "as part of its ongoing review of management and internal controls" and that it is conducting a search for a permanent CEO and chief operating officer. The search is being led by a structural and organizational committee, formed by the board, along with Chrisman & Co., an executive search firm.
"The leadership transition plan … is designed to strengthen First NBC's operational foundation as we focus on fortifying the bank's capital position and delivering enhanced shareholder value," Shivan Govindan, First NBC's chairman, said in the release. "First NBC is a valuable New Orleans institution with deep relationships with our customers and the local communities we serve."
First NBC reiterated a previous statement that it is "actively pursuing strategic options to deliver enhanced shareholder value." Often such language indicates that a company is looking to raise capital or sell itself.
The company disclosed last month that its bank had entered into a consent order with the Federal Deposit Insurance Corp. and the Louisiana Office of Financial Institutions. The order requires the bank to review its management, its loan review and problem-loan identification processes and its loan portfolio policy and procedures. The bank is also required to create plans to sustain adequate liquidity, reduce classified assets and meet certain capital requirements, among other things.
The bank must also submit a plan for maintaining a Tier 1 leverage capital ratio of at least 10%, a Tier 1 risk-based capital ratio of at least 13% and a total risk-based capital ratio of 15% or more.
First NBC warned in October that regulators had "deemed it to be in troubled condition." At June 30, First NBC's Tier 1 risk-based ratio and total risk-based capital ratio were both below 7.3%. The company earlier this year restated several years of financial reports, reducing capital by $99.2 million.