Old Stone Confirms Rosati As Chief Executive Officer
James V. Rosati was elevated on Friday to president and chief executive officer of Old Stone Corp. of Rhode Island and named chairman and CEO of its principal subsidiary, Old Stone Bank.
Mr. Rosati, 42, had been acting as top officer of the holding company since Oct. 7, when Theodore W. Barnes, 60, retired after 43 years of service. Mr. Rosati had been president and CEO of the bank unit since November.
Burgeoning Losses and Provisions
Loan-loss provisions, and losses, have been mounting at the Providence-based company. Last Thursday Old Stone reported a $104 million third-quarter loss and a $108 million loss for the first nine months.
The third-quarter results included a $65.3 million special provision for loan losses and real estate -- a provision that had been disclosed before Mr. Barnes' departure.
The company also wrote down $26.6 million for joint-venture real estate development projects and $7.5 million to close mortgage banking operations in Seattle.
The latest provision raised reserves to 35% of nonperforming loans at Sept. 30, from 20% at June 30. The company's assets have declined to $3.3 billion, from $3.7 billion at the end of 1990.
"We placed many issues behind us in the third quarter," Mr. Rosati said. "We are off to a solid start in the fourth quarter, with gains of approximately $39 million in the sale of subsidiaries. We believe these measures put Old Stone Corp. on firmer ground for the foreseeable future."
Mr. Rosati joined Old Stone in 1972 as a management trainee after being graduated from Bryant College. His banking career has spanned all key operating areas.
He advanced through the ranks of the retail banking group until 1978. He then moved to the commercial banking group, managing various areas, and in 1984 took charge of all commercial and international lending.
Experience in Many Lending Areas
His duties were expanded in 1989 when he became chairman of the credit policy committee and took responsibility for real estate investments and development activities. His work there included overseeing realty workouts and the winding down of Old Stone Development Corp.
A lifelong resident of Rhode Island, Mr. Rosati is a director of the Greater Providence Chamber of Commerce, a trustee of the Rhode Island Philharmonic Orchestra, and a trustee of the Rhode Island chapter of the National Organization of Christians and Jews.
He lives in Cranston with his wife, Janet, and two children.