Financial Company Chairman Fellheimer Quitting
PITTSBURGH (AP) _ The chairman and chief executive of Equimark Corp., Alan S. Fellheimer, is resigning from those posts.
The troubled bank holding company announced Thursday that Fellheimer, 47, will return the practice of law. He will continue to serve as a director after his resignation becomes effective.
″I am leaving because Equimark now needs steady, day-to-day management and I find more personal satisfaction in crisis and turnaround management and the problem solving associated with the practice of law,″ Fellheimer said in the statement.
The announcement follows the May 29 resignation of Fellheimer’s wife, Judith, as Equimark vice chairman. Shortly after that move, Claire Gargalli resigned as company president.
Equimark has reported losses of $31 million in the first half of this year, and the company announced Tuesday it was suspending dividend payments on its common stock.
But a company official said Thursday that Fellheimer’s resignation was not connected to the company’s financial situation.
″It was very much a personal choice on Alan’s part,″ said Libby Fishman, Equimark’s executive vice president and general counsel. ″He will remain available during an orderly transition period.″
Fellheimer was named to lead Equimark in 1985 after joining the $3.5 billion company as a director the previous year. At the time, federal regulators were threatening to shut down the bank.
″Equimark now has in place marketing, operating, credit quality and expense-containment plans necessary, which will serve as the basis for the company’s new strategy, and return to profitability,″ Fellheimer said.
Part of the bank’s recovery is due to a personal investment by Fellheimer and his wife of $9.5 million in Equimark. The purchase gave the Fellheimers a 10 percent stake in the company.
Equimark said Fellheimer has no plans to make a ″significant change in his equity position″ in the company.
The Equimark board of directors has established a committee to find a successor for Fellheimer. David Gardner, a director, will chair the committee.
Equimark’s principal subsidiaries include Equibank, Liberty Financial Group Inc., EquiManagement Inc. and Treasure Valley Bancorp Inc.