Sevier County Bank names new CEO [The Knoxville News-Sentinel, Tenn.]

<p><chron>Oct. 08</chron>--A struggling <location value="LU/us.tn.sevier" idsrc="xmltag.org">Sevier County</location> lender has tapped a new leader.</p><p><org value="ACORN:4167116451" idsrc="xmltag.org">Sevier County Bank</org> announced Friday that <person>Matthew Converse</person> has been named president and chief executive officer, the first permanent CEO in the bank's history.</p><p>In its announcement, the bank said former President <person>R.B. Summitt II</person> will serve as director of business development and legislative liaison. The release said senior vice president <person>Claude Huff</person> had served as interim CEO during the search process.</p><p>The release said Converse's primary focus will be improving credit quality and protecting capital. The banker graduated from the <org>University of North Carolina at Charlotte</org> in 1987 and previously served as president and CEO at <org>The Bank of Currituck</org> in <location value="LU/us.nc.moyock" idsrc="xmltag.org">Moyock, N.C.</location></p><p>In an interview, Converse, 46, said it's important for the bank to "aggressively attack the issues that we have in front of us."</p><p><org value="ACORN:4167116451" idsrc="xmltag.org">Sevier County Bank</org> lost more than <money>$2.4 million</money> in the first six months of the year and has faced pressure from regulators.</p><p>Last year, the <org value="ACORN:2975513548" idsrc="xmltag.org">Federal Deposit Insurance Corporation</org> issued a consent order to the bank, requiring it to submit a plan for improving earnings and reducing discretionary expenses; to correct credit underwriting and loan administration deficiencies; and to submit a plan for the reduction and collection of delinquent and/or nonaccrual loans.</p><p>"You never can determine what the future will bring, but I'm optimistic about our ability to address the items in the consent order and do the things necessary to have a successful bank going forward," Converse said.</p><p>Summitt could not be reached for comment, but said in the announcement that he and his family agreed that the company had "selected the best person to lead our bank." Summitt's father, <person>Ross B. Summitt Sr.</person>, previously served as president, and Converse said Friday the Summitt family owns a significant portion of the bank, although he declined to give an exact figure.</p><p>In April of last year Converse's former employer, the <org>Bank of Currituck</org>, entered a written agreement with state and federal regulators requiring it, among other things, to submit plans for strengthening credit risk management and strengthening internal review of its loan portfolio.</p><p>In <chron>July 2010</chron>, <location value="LS/us.va" idsrc="xmltag.org">Virginia</location>-based TowneBank announced a deal to acquire the deposit accounts of <org>The Bank of Currituck</org>, its six offices in northeastern <location value="LS/us.nc" idsrc="xmltag.org">North Carolina</location> and other assets. Asked about that sale, Converse said each bank is unique and that at <org value="ACORN:4167116451" idsrc="xmltag.org">Sevier County Bank</org> "our objective is to remain an independent community bank."</p><p class="shirttail">___</p><p class="shirttail">(c)2011 the Knoxville News-Sentinel (Knoxville, Tenn.)</p><p class="shirttail">Visit the Knoxville News-Sentinel (Knoxville, Tenn.) at www.knoxnews.com</p><p class="shirttail">Distributed by MCT Information Services</p>