‘They have full confidence in me running the bank . . . They’re happy with my work . . . I can guarantee you I wouldn’t be here if they had lost confidence in me.?
Oxford Bank President and Chief Executive Officer Jeff Davidson certainly did not sound like he was going anywhere a few weeks ago when he made the above statements with regard to Karen Mersino’s replacement of him as chairperson of the financial institution’s board of directors and holding company.
That’s why it was so puzzling that he resigned, effective immediately with no public explanation, during a special bank board meeting Friday.
Davidson, who’s worked for the local bank since September 1985 and served as its president and CEO since January 2004, could not be reached for comment.
All Mersino would say regarding the circumstances surrounding the resignation was ‘in this current business climate, I’m not really too surprised by anything anymore.?
Like most other financial institutions, Oxford Bank’s experienced some setbacks ? including falling stock prices and the high cost of maintaining foreclosed properties ? over the last two years due to the troubled economy. But it appeared as though things were getting somewhat better.
In late April, the bank announced a 51.4-percent improvement in operating results for the first quarter ending March 31. A net loss of $495,000 (or $0.43 per share) was reported, compared to a net loss of $1.019 million (or $0.88 per share) for the same three-month period in 2008.
This was the result of ‘nearly two years of aggressive, sustained efforts to reduce expenses and improve asset quality? under Davidson’s leadership.
Mersino thanked Davidson for his service.
‘We are grateful for the years that he has put into the bank,? she said. ‘He’s had a lot of different roles and we certainly wish him the best in his own future endeavors.?
Davidson’s departure marks the end of a long relationship between him and the 125-year-old community bank.
A 1971 OHS graduate, Davidson opened his very first savings account at Oxford Bank and received his first car loan and first home mortgage from the local institution. His father, Donald Davidson, served on the board of directors from 1964-83.
Until a permanent replacement is found, Thomas Dorr, the bank’s vice president and chief financial officer, was named CEO on an interim basis. He will also retain his responsibilities as CFO.
‘I appreciate the confidence (shown) by the board,? said Dorr, who’s been with the bank since February 2008. ‘I’m committed to the success of the bank. Whatever they need me to do, I’m willing to do.?
Prior to Oxford, Dorr, who’s a certified public accountant, spent three years as an assistant vice president and controller for a community bank in Lenawee County.
Before that, the Hillsdale College graduate was an associate at the Auburn Hills-based Plante & Moran, PLLC, where he specialized in auditing financial institutions, employee benefit plans and manufacturing distribution systems.
Dorr stressed his reign as CEO is only temporary and he has ‘no interest in applying for the position.?
According to a press release issued by the bank, the board of directors will immediately begin the search for a new CEO and ‘does not expect to make any additional executive leadership changes at this time.?
Mersino would ‘love to see? the board find the right candidate to make an offer to ‘by the end of June.?
‘That would be my hope,? she said. ‘But until we start actually interviewing, I’m not sure how long the process could take.?
‘We’re trying to fast-track it, but by the same token, we want to be thoughtful on this and make sure we get the right person, the right fit for the community.?
Mersino said the board wants someone who’s ‘well-experienced and well-rounded.?
Given the chairman role was recently separated from the president and CEO positions, Mersino was asked if the board plans to do the same with those two titles.
‘We haven’t had any discussions about splitting those roles up at this point,? she said. ‘I think we would probably make that still one position.?