Risk Management Manual of Examination Policies - FDIC

Interview Comments
IV. GENERAL CHARACTER OF THE MANAGEMENT (Continued)
Mr. Hamm stated he was disenchanted with Regionalbank’s methods of operation after its acquisition of Anybank and sought to
pursue other opportunities. The denovo’s legal counsel, Hodson & Hodson (HH), contacted Mr. Hamm about becoming an organizer
shortly after the former president resigned from the group in April 2000.
Mr. Hamm stated he was skeptical about the prior proposal’s business model as well as, the viability of the kiosk as a key delivery
channel. His main issue with the kiosk strategy was that it had not been successfully executed within the market place. As a result,
Mr. Hamm stated he recommended that the model be changed to incorporate more proven and traditional retail delivery channels.
Another key change he recommended was the addition of other board members with strong community ties and/or previous banking
experience (proposed director Wart, Marcotte, and Lamar). Mr. Hamm also sought to replace the previous proposed senior lending
officer with one he viewed as possessing a stronger skill set and educational background.
Mr. Hamm indicated he has market intelligence over the success of the proposed supermarket branch network, inasmuch as eleven of
the twelve branch sites were previous Anybank branch locations. He believes this aspect to be a key strength over the previous
proposal. Mr. Hamm stated that despite his less than three years in Anytown, he has a sound foundation within the market area and
has developed many contacts, which could lead to lucrative future business for the proposal. Regarding future lending, Mr. Hamm has
retained a chief lender (Well) with whom he directly supervised while at AnyNational Bank and Anybank. In addition, other senior
lenders have expressed a desire to join the group. Said lenders, according to Mr. Hamm, all would bring seasoned commercial and
consumer portfolios generated from the former Anybank.
Financial Information and Stock Ownership
As of August 2001, Mr. Hamm reports a considerable liquid net worth, with $542M in cash and marketable securities. He reflects a
personal residence with an assigned valued of $550M and deferred savings plan (401k/IRAs) assets of $420M. Liabilities consist
primarily of a mortgage payable of $390M. Mr. Hamm’s initial investment of $30M was reportedly purchased with his cash holdings.
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