Diane Fearon, the founding chief executive officer of Bank of George, has resigned, Chairman Edward Nigro advised shareholders in a June 30 letter.
Fearon has been top executive at the $111 million-asset Las Vegas bank since it was founded in 2007 as Southern Nevada’s economy was slipping into a still continuing recession.
“The Board of Directors has determined that it is now time for Bank of George to move in a new direction. As such, Ms. Fearon, President/CEO, tendered her resignation last week and this resignation was accepted,” Nigro said in the letter.
Nigro said that an application for a new CEO has been submitted for approval by regulators, but he did not identify the proposed CEO.
“Your bank remains fully committed to strengthening revenues, maintaining stringent controls, remediating problem loans and improving capital,” he said.
“We have made significant progress on the bank’s goals this year as we’ve seen an increase in our capital ratios and a decrease in non-performing loans,” he said.
Although the amount of nonaccrual loans, one category of nonperforming loans, has come down from $12 million a year ago, they still total an unhealthy $7 million.
The company reported a $43,000 profit in the second quarter. up from $56,000 in net income for the first quarter. However, the bank lost $2.5 million during 2011.
The bank has $8.6 million in net equity capital or “tier 1″ capital.
Nigro said the board wants to wish Fearon “well in her future endeavors.”
Fearon’s photo no longer appears with other executives on the Bank of George website. However, the bank’s lead testimonial praises Fearon and it still appeared on the website late Tuesday.
Lawyer Mark Hutchison of Hutchison & Steffen (now a Republican candidate for the Nevada Senate) signed the testimonial about the key role Fearon played as banker to his law firm.
The testimonial states:
“The law firm of Hutchison & Steffen has worked with Diane Fearon (Bank of George President/CEO) for the past 13 years. Diane arranged our initial business loan and has supported our firm with extraordinary service through the years. Most importantly, Diane understands the business side of the practice of law and has been wonderfully attentive, proactive and creative in supporting the firm’s banking needs as we have grown to more than 30 attorneys in multiple offices.”