Interim CEO, Chief Credit Officer,Turnaround, Acquisitions
With over 20 years nationwide experience in both community and mega banks, Joe Marchese is a battle tested financial services turnaround and growth executive. He has led the pre-acquisition diligence, credit cultural assimilation and trouble-shooting of several performing or troubled bank acquisitions. He is an expert bank crises manager, and loan portfolio turnaround and growth specialist, who has also developed new lending products and marketing niches. His keen business development and negotiating skills are effective in the field winning transactions and building existing customer relationships.
Joe has finely developed experience as a supervisor and critical strategy tactician of legal counsel performing litigation or loan documentation. Throughout his career, he has acted as a catalyst to loan growth coaching advanced loan structuring and problem-solving skills, as well as protecting prized clients from predatory competition. His unique combination of skills extends to visionary strategies for bank organizations. His three consecutive turnarounds of banks run the range from cultural and credit-discipline management to deeply troubled institutions with multiple crises situations under the duress of regulatory enforcement actions. This included the successful coaching and supervision of the disposition of over $400 million in non-performing and under-performing assets, followed by record profitability and a successful capital raise for the organization. These victories over adversity earned him a solid reputation in the bank regulatory community.
Joe is an excellent judge of subordinate talent to help achieve objectives. Typically, Joe simultaneously supervises several administrative areas, credit underwriting and policy, inside and external legal counsel, loan workout teams, loan documentation, operations and servicing, collateral appraisal, and bank acquisition identification, diligence and integration. In recent years, he has also been active as a political lobbyist at the federal level over banking regulatory issues and regulatory reform. Marchese has consistently demonstrated the talent and vision to lead financial services firms from deteriorated performance back into profitability, restoring balance sheets to strength, and loan portfolios to safety and soundness while enhancing growth opportunities.
SELECT INTERIM EXPERIENCE
Company Stage Focus: Private Equity Backed, Turnaround/Distressed, Public
Executive VP, and CCO, Turnaround, 3 Year Contract, $2B Commercial Bank
Chief Executive of Credit, Legal, Loan Workout, Appraisal and Loan Operations teams, and Chairman of Management Loan Committee of $2B bank. Was specifically hired as the primary catalyst to achieve regulatory enforcement action removal and improve the banking regulator environment. Asserted a new sound credit culture, engineered the portfolio turn-around strategy and lending team approaches to problem solving, corrected the staffing model to increase velocity of recovery, overhauled credit policy and improved loan documentation. Also created and expanded the bank’s suite of credit products. The turnaround included the coaching and strategies employed to eliminate over $400M of troubled and under-performing assets. Removal of the regulatory enforcement action, and the rapid pace of the recovery led to an over-subscribed $70M capital raise, and record profitability for 2013.
Executive VP, and CCO, Turnaround, Acquisitions, $3.9B Commercial Bank
Consulting switched to permanent hire. Led stabilization of loan portfolio, re-strategization of work out and lending team approaches to problem solving, corrected credit culture, overhauled credit policy, and helped facilitate sale of bank to group of investment banks led by Goldman Sachs. Retained by new management following sale to continue role as CCO and to lead credit side of diligence teams in pre-acquisition evaluations, leading to 4 successful acquisitions. Coaching of portfolio clean up and improved regulatory reporting led to release from regulatory enforcement action, and record profitability beginning in FY 2011. Additionally, personally negotiated to break inertia in long standing loan litigation.
SVP and CCO, Early-Stage Turnaround, plus Acquisitions, $1.6B Commercial Bank
Recreated bank’s credit culture to improve credit quality and reduce losses, corrected workout staffing model, and improved loan portfolio character and performance reversing downward trend and exceeding UPBR requirements and regaining regulator confidence. Helped coach and facilitate portfolio growth, particularly in C&I and Owner-Occupied CRE. Led loan-side of several pre-acquisition diligence teams leading to 4 bank acquisitions and almost tripling the size of the bank.
• Restored record profitability of $2B failed bank after leading turn-around. Achieved removal of Regulatory Consent Order after personally directing extensive $400M portfolio turn-around, culture re-alignment and renewed portfolio growth over 26 months, resulting in bank upgrade and successful capital raise (2011-2014).
• Directed changes in portfolio quality strategies and reporting integrity of $1.6B failed bank, and modernized policies. These measures gave confidence to buyer’s diligence teams resulting in acquisition by an I.B. group led by Goldman Sachs (2010-2011).
• Led pre-acquisition diligence team reviewing 20 bank portfolios, resulting in acquisition of 9 banks (2008-2011)
• Assisted executive management in identification and analysis of potential acquisition targets (2008-2010 and 2010-2011)
• Evaluated and replaced outside legal counsel resulting in prompt settlements of long term litigation and reduced legal fees by over $1MM in 2013.
• Director, Illinois Bankers Association (a political lobbying group) 2012 – 2014
• Director, Effingham Animal Rescue Service (non-profit) 2008 – 2010
• Bachelor’s of Business Administration, Florida International University 1980
• Advanced Credit Studies, Graduate School of Banking, Louisiana State University, 1985
• Management Training Program – 9 months – Atlantic Bancorp (n/k/a First Union), 1980
Years Executive Experience: (7)
# of Interim Roles: (3)
# of Board Roles: (2)
Company Size: ($501M-$10B)
• Crisis Management
• Litigation Management
• Litigation Strategies
• Acquisition Diligence
• Merging Dissimilar Cultures
• Building a Management Team
• Board Advisory
• Corporate Negotiation
• Corporate Development
• Corporate Governance
• Debt and Refinancing
• Process Improvement
• Sales Management
• Acquisition Integration
• Marketing Strategy
• Financial Services
• Commercial Finance Firms
• Acquisition Platforms
• Holding Companies