United Companies Financial Hires Hibernia Region Chief

One of Hibernia Corp.'s top regional executives has resigned, effective Sept. 1, to take a senior job with a leading subprime home equity lender.

C. Geron Hargon, 50, a former chief operating officer of New Orleans- based Hibernia and chairman of its south-central region since last year, will join United Companies Financial Corp. as an executive vice president and head of its lending group.

United Companies, based in Baton Rouge, operates in all 50 states as a leading provider of home equity lines for debt consolidation.

"I just felt United Companies was offering me an opportunity that was very hard to pass up," Mr. Hargon said. "It's nothing Hibernia has done wrong - it's the attractiveness of what United Companies had to offer."

His responsibilities at Hibernia will be assumed by J. Herbert Boydstun, 48. Mr. Hargon's south-central area, including Baton Rouge, Lafayette, and Acadiana, will be merged with the northeast region now run by Mr. Boydstun.

Besides consolidating two of Hibernia's four decentralized regions, the reorganization plan also includes the transfer of Alexandria from the northeast to the northwest (Shreveport) grouping, which is managed by chairman E.R. "Bo" Campbell and president Bob Flurry.

Hibernia's largest region, the southeast, includes greater New Orleans and its chairman is Robert W. Close.

The holding company's president and chief executive officer, Stephen A. Hansel, said the creation of a single south-central/northeast organization, based in Baton Rouge, resulted from Mr. Hargon's departure, rather than vice versa.

"I felt that the regions were a little smaller than they could have been, and this gave us an opportunity to spread the executive talent a little further and save some money," the CEO said.

Dean Witter analyst Anthony Lombardi said cost cutting is a major priority at Hibernia, which has $6.7 billion of assets and a rather high 67% overhead ratio. "As this bank grows, they clearly have to get more savings out of the organization and this helps them do that," Mr. Lombardi said.

Mr. Hargon ranked as Hibernia's fifth-highest-paid executive last year, receiving $150,000 in salary and a $82,500 bonus.

Mr. Hansel said improving Hibernia's 6% share of deposits in Acadiana, the company's lowest penetration, would be a major focus for Mr. Boydstun. Hibernia entered the relatively unconcentrated Acadiana market in early 1994 through a small acquisition and needs more purchases to build its presence.

"Herb is a former president of the Louisiana Bankers Association and has a lot of good contacts with the independent banks out there (that) will be particularly helpful building the franchise over a period of years," Mr. Hansel said.

Mr. Boydstun came to Hibernia in 1994 when it took over the bank he served as chairman, First Bancorp of Louisiana. Mr. Boydstun also took a seat on the Hibernia board.

Mr. Hargon, known as "Gee Gee," is the second commercial banker to join fast-growing United Companies. Last year the finance company hired John D. Dienes away from NationsBank Corp. to be its chief operating officer. A former executive vice president of corporate lending for NationsBank in Texas, Mr. Dienes was promoted to president of United Companies in June.

"I am a little apprehensive," Mr. Hargon said. "It's a different industry. But management skills do transfer."

Mr. Hargon joined Hibernia in 1976 and spent the next 19 years managing the Baton Rouge operations, where he became friends with United Companies chairman and CEO J. Terrell Brown. The lender is one of Hibernia's major corporate customers, and Mr. Brown is a director of the banking company.

"We expect, without a doubt, that Mr. Hargon can take this company to the next level," Mr. Dienes said.

Mr. Hargon played a key role in guiding Hibernia through its dark days of 1991-92, when severe loan losses incurred by the previous management nearly brought the bank to its knees. Mr. Hargon was interim chief operating officer from August 1991 until March 1992, when Mr. Hansel arrived from Jacksonville-based Barnett Banks Inc. to recapitalize the ailing company.

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