Magazine article American Banker

Flagstar CEO Campanelli Quits after Restoring Profitability

Magazine article American Banker

Flagstar CEO Campanelli Quits after Restoring Profitability

Article excerpt

Byline: Robert Barba

Exactly three years after taking the helm of Flagstar Bancorp, Joseph Campanelli is moving on.

The $14.4 billion-asset company in Troy, Mich. (ticker: FBC) disclosed late Monday its board has promoted Michael J. Tierney to president and chief executive. Tierney joined the company in early 2011 as an executive vice president and managing director of personal financial services. He also has served as Midwest president for the company's Flagstar Bank unit. Tierney is set to assume his new role on Nov. 1.

Campanelli plans to serve as CEO and a director until Oct. 31, but the company said he would continue to be available to support Flagstar "in a transitional role." The company said he is resigning to "pursue other opportunities."

"I am proud of all we have accomplished during my time as CEO," said Campanelli in a press release. "I believe that we have turned the corner in addressing many of Flagstar's legacy issues and have built a solid foundation for continued growth and success."

Campanelli joined Flagstar on Oct. 1, 2009, succeeding Mark T. Hammond as the company's president and chief executive. Flagstar had more than $1.1 billion in nonperforming assets at the time and the news of Campanelli's appointment was welcomed by analysts. Prior to Flagstar, Campanelli led Sovereign Bancorp in Wyomissing, Pa. following the resignation of Jay Sidhu. Campanelli ran Sovereign for two rocky years before leaving in September 2008. That company was sold to Banco Santander SA in 2009.

Under Campanelli's direction, Flagstar retooled itself. It sold nearly half of its nonperforming assets in a bulk sale in late 2010 and exited markets like Atlanta. Meanwhile, he diversified the company's mortgage-heavy balance sheet with more commercial credits and opened a loan production office in New England.

He also returned the company to profitability. …

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