Hibernia Purges Top Managers, Posts $33.2 Million Loss
Hibernia Corp. on Tuesday ousted its entire senior management team, announced a $33.2 million second-quarter loss, and said it was "actively seeking outside investors, a merger partner, or both."
Sidney W. Lassen, chairman of the company's executive committee, was named acting president and chief executive.
New Orleans-based Hibernia announced definite plans to sell its Texas franchise, which encompasses 25 branches holding $1.1 billion of assets.
The announcement was made after the market's close. Hibernia common shares on Tuesday fell 87.5 cents to $4.25, surrendering all of the previous day's gain.
The decline followed NCNB Corp.'s denial it might provide additional equity for Hibernia.
Ailing Hibernia, which lost $50 million during the first quarter, said it would shrink in order to raise its capital ratios "within required government standards."
The $7.2 billion-asset unit said it had entered a consent agreement with the Office of the Comptroller of the Currency.
Among the departing executives was Martin C. Miler, the chairman and CEO who picked up more than $4 million in salary since 1987.
In a sweeping housecleaning, Hibernia also announced the departure of the lead bank's chairman, Thomas A. Masilla Jr., vice chairman O.C. Russell, Jr., and president Charles J. Shaw, Jr.