Flagstar exec Tierney succeeds Campanelli as president, CEO
Originally published October 2, 2012 in Crain's Detroit Business by Tom Henderson
Troy-based Flagstar Bancorp Inc. has appointed longtime Michigan banker Michael Tierney to replace Joseph Campanelli as president and CEO of the holding company and Flagstar Bank.
Tierney, 57, became president of the holding company and bank effective Monday and will become CEO on Nov. 1. Upon becoming CEO, he also will become a director of the company and the bank.
Tierney, a native of Grand Rapids, had been executive vice president and managing director of personal financial services since February 2011.
Flagstar (NYSE: FBC) also announced that John Lewis, managing director of Grosse Pointe-based DPP & Partners and former vice chairman of Comerica Bank, has been appointed a director of both the company and bank and will serve as nonexecutive chairman of the boards of directors.
Campanelli, 56, will resign Oct. 31 to pursue other interests. He had been brought in to Flagstar in September 2009 by MatlinPatterson Thrift Investments LP, which eventually invested $1 billion in the bank, to replace Mark Hammond as president and CEO and turn around the struggling mortgage-focused operation, which was hit hard by the recession.
That November, Campanelli replaced Mark's father, Thomas, the bank's founder, as chairman.
On July 18, Flagstar reported net income of $86 million in the second quarter, which ended June 30, the company's first profitable quarter after 15 consecutive quarters of red ink totaling more than $1.1 billion.
On Sept. 24, shareholders approved a 1-for-10 reverse split that removed the threat of being delisted from the New York Stock Exchange. Flagstar's share price had been under $1 for four months before recently going back above that NYSE threshold.
The bank faced delisting by the end of the year if it didn't have its share price above $1 for 30 consecutive trading days.
"I am proud of all we have accomplished during my time as CEO," Campanelli said 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."
Said Tierney: "I am honored to have the opportunity to lead Flagstar through the next phase of our growth. Joe has done an exceptional job of transforming Flagstar and returning it to profitability, and I believe we are well-positioned to build on Flagstar's industry-leading mortgage banking franchise."
Tierney has been a banker for more than 33 years. Previously, he was president and CEO of Madison Heights-based PSB Group Inc., the holding company for Peoples State Bank. He also was at Comerica for 28 years in a variety of roles, most notably senior vice president of personal financial services, where he oversaw 256 branches.
As of June 30, Flagstar had $14.4 billion in assets and was the largest bank based in Michigan.