Oh, the times they are a-changin?.
For the first time in Oxford Bank’s 125-year history, a woman will serve as chairman of the board.
Last week, the bank’s board of directors voted to appoint 55-year-old Elba Township resident Karen Mersino as its chair.
Mersino, who’s served on the board since 1999, will also chair the Oxford Bank Corporation, the financial institution’s registered holding company.
‘I’m honored by the board’s decision and their confidence in me,? she said. ‘The opportunity to play such an integral role in the guidance of this historic, 125-year-old institution is humbling.?
Mersino’s new position, which is subject to approval by the Federal Deposit Insurance Corporation, will be formally announced at the bank’s annual shareholders meeting Thursday, May 21.
‘I think it’s a logical choice,? said Jeff Davidson, bank president and chief executive officer. ‘No, she’s not a banker, but she’s sat on this board for 10 years and certainly understands the business world . . . Karen has an excellent business sense.?
Mersino, a 1972 graduate of Brandon High School, will take over for Davidson, who’s served as chairman since April 2007. He will remain president and CEO of the bank and its holding company, and continue to serve as a voting board member.
‘They have full confidence in me running the bank. That doesn’t change,? Davidson said. ‘I am not fired. They’re very happy with my work . . . I can guarantee you I wouldn’t be here if they had lost confidence in me.?
All the negative media attention surrounding financial institutions and corporations during these tough economic times motivated the bank’s board of directors to separate the chairmanship from the president and CEO positions.
‘Perception tends to become reality,? said Davidson, noting that strictly from an appearance standpoint his ‘being president, chairman and CEO looks like I could direct the board any way I want.?
‘We didn’t want it to get to a point where our shareholders and/or community is thinking just because the chairman of (General Motors) was paying himself $14 million a year, that I had that much power, that I had that much control.?
That’s definitely not the case at Oxford Bank where Davidson said the board of directors has never been a group of ‘head-bobbers? willing to say yes to whatever management wants.
‘Our board’s always been very active and involved,? he said. ‘They’ve input a lot of ideas. They’ve always been active in terms of referring customers to the bank.?
Mersino agreed the separation of positions comes down to how the board and bank are perceived.
‘In the current economic climate, people are looking for transparency and independence,? Mersino noted. ‘We (the board) wanted to maintain our independence while still working with the management of the bank.?
‘We think that it’s just better corporate governance to have an outside director as the chairman of the board,? she explained. ‘It’s something we gave a lot of thought to, looked at how other banks are doing it and this seems to be a growing trend, so we decided to be proactive on it.?
Mersino’s looking forward to being a ‘conduit between management and the board? as the bank moves forward.
As chairman, Mersino will set the agenda and run the monthly board meetings.
‘The meeting may flow a little differently and that’s something that Jeff and I will have to work on together,? she said.
Mersino is no stranger to serving on boards or in leadership positions.
She currently serves on the board of trustees that oversees the Lapeer Regional Medical Center and from 1991-99, she served on the Brandon Board of Education, spending four years as president.
In Lapeer, Mersino spent two years as chair of the county Republican Party and six years as vice chair.
‘I think I have the ability to analyze situations and make good decisions,? she said. ‘I meet a lot of people and I try to learn from everybody that I meet.?
Her school board experience taught her ‘to look at every decision from many angles.?
Mersino backs up her board-level experience with many years in the business world.
She’s the cofounder and current chief financial officer of Mersino Dewatering and Mersino Enterprises. She runs the company with her husband of 36 years, Jim.
Mersino is also the founder and former operator of the Frosty Boy ice cream shop located on W. Burdick Street, a licensed real estate broker and owner of several property management companies.
Despite the bleakness of Michigan’s economic picture, Mersino is optimistic about the bank’s future because of its ‘strengths,? which include ‘our core deposits, our loyal customers and . . . a strong board who’s ready to take any action that needs to be taken.?
‘I have every confidence that we are going to get through this turmoil,? she said. ‘I can’t tell you what’s going to happen tomorrow, but I have every confidence that Oxford Bank will weather this.?