North American Financial Holdings, the holding company set up to consolidate chunks of the Southeast's banking sector, has wrapped up its $217 million investment in Green Bankshares, giving it 90 percent of that company's shares. The release from the companies suggests the GreenBank name will survive even though the bank itself has been merged into NAFH's Capital Bank. There's also word that BioMimetic Therapeutics CEO Sam Lynch will stay on the board of Green Bankshares.
SEE ALSO: GreenBank finds its white knight
For the second quarter in a row, Green Bankshares posted a net loss of about $10 million as it continued to shrink its asset base and manage its bad loans. The community bank also said state and federal regulators in May told it they would seek formal enforcement actions to boost capital levels. The bank, which cut its staff by 11 percent during the quarter, already has informally committed to higher capital ratios.
North American Financial Holdings, the start-up venture that in early May agreed to buy most of Green Bankshares for about $220 million, filed papers late last week to sell its shares to the public for the first time. Details are scarce at this point, but the bank holding company's execs are ballparking a $300 million offering. It also appears the GreenBank will soon give way to the Capital Bank brand NAFH is rolling out elsewhere.
SEE ALSO: The Charlotte Observer's take on the story
Green Bankshares has found the successor to CFO Jim Adams, who will step down from his post in two weeks. Taking his place will be Steven Fowler, who is coming over from South Carolina-based South Financial Group. CEO Stephen Rownd also came to GreenBank's parent from the Palmetto State.
Josh Flory reports on the laying off of about 70 employees last week at Green Bankshares, where management is trying to right the ship after curtailing its lending over the past few years.
SEE ALSO: Background on Green Bankshares' troubles in recent years
Josh Flory reports that veteran area banker Ed Mayberry is no longer with Green Bankshares, where he had been Sumner County executive since selling Independent Bankshares in 2003. Mayberry did not stand for re-election to Green Bankshares' board last year.