Kessel D. Stelling Jr., who has served since June as acting head of the second-largest banking company based in Georgia, was named Thursday as its permanent president and CEO.
Stelling replaces Richard E. Anthony, who took medical leave from the Columbus-based bank last June. Anthony, who was diagnosed with Wegener's Syndrome, will return to the bank as chairman.
“The team we have -- this is such a committed group that has come through a tough time and is ready to play offense again,” Stelling said. “This (announcement) changes the title, but it doesn’t change what I’m doing every day.”
Stelling faces plenty of challenges moving forward.
Synovus has been rocked by the recession and the fallout of the real estate market. The bank has lost more than $2 billion since 2008. Synovus twice went to the public market to boost its cash reserves, and also received nearly $1 billion in federal aid through the Troubled Asset Relief Program.
Chris Marinac, a bank analyst with FIG Partners, expects Synovus to post a loss of 40 cents a share when it announces third quarter earnings Oct. 25. Marinac said Stelling’s top priorities are to “resolve credit issues as quickly as possible and cut costs.”
The bank said last quarter that it is aiming to cut costs by as much as $100 million per year. This year Synovus merged its 30 separate bank charters, but Marinac expects the bank will trim its payroll and implement other operating efficiencies.
Stelling is the former president and CEO of Synovus affiliate Bank of North Georgia and was a founder and chief executive of Riverside Bank, which Synovus acquired in 2006.
“He’s a good manager, a good leader, and he has credibility,” said Bobby Schwartz, banking attorney with Smith, Gambrell & Russell. Stelling, Schwartz said, is part insider as well as a Synovus outsider.
“He hasn’t been tagged with any missteps (by Synovus). The new broom sweeps clean,” Schwartz said.
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