Risk Management Manual of Examination Policies - FDIC

IV. GENERAL CHARACTER OF THE MANAGEMENT (Continued)
NAME AND ADDRESS
AGE RELATIONSHIP WITH BANK
Wart, Philip
118 Olympus Circle
Anytown, Anystate
46
LIABILITIES
Director
NET WORTH
Officer
SHARES OF
STOCK
10% Shareholder
ANNUAL
SALARY
921,896 1,661,484 250,000 0
TITLE
Proposed Director (nonexecutive)
OTHER BUSINESS AFFILIATIONS OR PROFESSIONS
Attorney. President and Managing Partner of the law firm, Wart, West, and West, P.A. (WWW).
Summary and Findings
Mr. Wart was born in Robana, Illinois and has resided in the Anytown area since 1984. He received an undergraduate degree in
economics from Dartmouth College, Hanover, New Hampshire, and Juris Doctorate in law from University of Miami, Miami, Florida.
Mr. Wart is a practicing attorney, specializing in corporate, real estate, banking, and securities law. Additionally, he is Chairman of
the Anytown Development Board, a not for profit organization committed to advancing the county’s business, technology, and
educational endeavors.
Interview Comments
Mr. Wart became associated with the proposal through Joe Hamm, whom he advised on several lending transactions, while at
Anybank. He stated he is an active member in the community and knows many influential business professionals who can serve as
potentially lucrative deposit clients during the formative stages. In that regard, he specifically spoke of the New Technical School in
Anytown. He anticipates being able to refer the School’s operating account, which reportedly retains balances of $10 million.
Mr. Wart stated he has performed legal work for many financial institutions in Anystate. He was active in processing various
regulatory applications for Anybank, in Anytown when he served as general counsel. Additionally, he represented Anybank on many
real estate transactions. In addition to proposed CEO Hamm, Mr. Wart knows proposed director Marcotte, a fellow member of the
Anytown Development Board.
With regard to the business model, Mr. Wart stated it was conceived on sound research and partly on the success of the eleven- branch
supermarket network, while employed by Anybank. He cited the favorable deposit market share in AnyCounty-1 and AnyCounty-2,
the depth of the Hispanic market, and relatively low cost structure of the supermarket branch vis a vis the traditional bricks and mortar
retail branch site.
Financial Information and Stock Ownership
As of August 2001, Mr. Wart reported $163M in cash and marketable securities, as well as, $1,577M in residential and commercial
real estate holdings. Other assets include his 43% interest in the law firm, WWW, with an assigned value of $600M. The firm WWW
reported revenues of $3 million for the year ending 2000, representing a 54% increase over the previous year. Mr. Wart’s
liabilities consist primarily of three mortgage payables with an aggregate balance of $914M. He reports no contingent liabilities.
According to Mr. Wart, his $10,000 investment in the proposal was made with cash.
FDIC 6510/10 (02-2002) 30