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Interim CEO Positions Acting Chief Operation Officer: Equipment Finance LLC, a subsidiary of Sterling Financial Corporation and Bank of Lancaster County (acquired by PNC Financial Services Group)
In early April 2007 Sterling obtained information that its logging equipment financing subsidiary – Equipment Finance LLC (“EFI”) – might have significant issues in the conduct of its business. Sterling immediately placed the two day-to-day executives responsible for the business on administrative leave, and engaged George to become Acting Chief Operating Officer of EFI reporting the boards of directors of Sterling and its subsidiary, Bank of Lancaster County. In this role, George provided day-to-day operating leadership to the company, led management’s analysis of the situation, supported the investigation conducted by the Audit Committee, and advised executive management and the boards of directors of the Bank and of Sterling as they took actions to address the situation. As a result, Sterling chose to seek a partner, and in July 2007 PNC and Sterling announced the signing of a definitive agreement. The transaction closed in April 2008. George managed EFI throughout that period, and, when the acquisition closed, PNC engaged George to continue assisting the PNC management team assigned to EFI in day-to-day operations, and to advise the various attorneys addressing remaining legal issues. Expert witness: Un-named bank
The client bank dismissed its former CEO after the bank had received a cease-and-desist order from its regulator. The former CEO then sued the bank to recover severance pay and a variety of other benefits that the bank had denied in its action against the executive. When the bank learned that the plaintiff planned to bring expert witnesses to the trial, it decided to engage someone with experience as CEO of troubled institutions to counter that testimony. George was engaged to perform this work and given nine days to analyze the fact base and prepare a document for the bank’s response. The bank recognized that George’s past experience as Interim CEO of two troubled banks as well as his broad background in financial services would provide the credibility required in advancing the bank’s position. The parties negotiated a settlement prior to trial. Interim President and CEO: Fulton Bancshares Corporation and its subsidiary, Fulton County National Bank and Trust Company
In July 2005 the Board of Directors of Fulton Bancshares Corporation, parent company of The Fulton County National Bank and Trust Company, a $140 million community bank, engaged Millward Consulting LLC to provide George as Interim President and CEO for both the Holding Company and the Bank. The Bank had not had a leader for over three months, and was under significant pressure to respond to a cease-and-desist order imposed by the OCC on the Bank and a memorandum of understanding agreed to by the Holding Company with The Federal Reserve Bank of Philadelphia. Complicating the effort was the public-entity status of the Holding Company, which created the need to plan for the implementation of Sarbanes Oxley-mandated reforms in accounting controls.
The focus of the effort was to re-engage the employees in addressing the issues which caused the orders to be imposed, to strengthen day-to-day operating procedures, and to engage the Board in determining the appropriate strategy for the Company. After much debate, the Board decided to test the market for the Company, which resulted in the signing of a definitive agreement with Franklin Financial Services Corporation of Chambersburg, PA, the parent company of F&M Trust Company of Chambersburg, on January 23, 2006. Shareholder approval was gained in May 2006, regulatory approvals occurred in June 2006, and the deal closed effective July 1, 2006. The shareholders received 155% of book (or about a 33% premium over the market value of the stock on the day the Definitive Agreement was signed).
Interim President and CEO: Luzerne National Corporation and its subsidiary, Luzerne Bank
In July 2003, the Board of Directors of Luzerne Bank requested the resignation of the president of this $175 million community bank and asked George to assume the role of Interim President and CEO. The initial effort focused on gaining the confidence of the employees with the leadership change, continuing the progress in resolving the issues indentified in the formal agreement with the OCC and the memorandum of understanding with the Federal Reserve Bank of Philadelphia, guilding a strategic direction for the Bank, and managing the selection of an executive search firm to find a replacement CEO.
During the following six months, George was responsible for all day-to-day activities of the Bank as well as for the development of the governing processes of the Board. The search process resulted in the hiring of a new CEO, who stepped into place with many of the issues which had caused the regulatory orders completed.
In 2008, Luzerne Bank was credited by an investment banker with the best overall performance by a Pennsylvania bank in its size category.
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