SANTA ROSA -- After guiding the 123-year-old Exchange Bank through one of the toughest economic recessions in U.S. history, William "Bill" Schrader, president and chief executive, will retire this March, the CEO said.
Mr. Schrader will continue serving as chairman of the bank's board of directors, with William Reinking, current chairman and a former president himself, retiring from that role. Gary Hartwick, currently chief operating officer, will become CEO, Mr. Schrader said.
[caption id="attachment_87377" align="alignleft" width="165"] Bill Schrader[/caption]
The decision follows a career in banking that began as a financial regulator and most recently included 36 years at Exchange Bank. Mr. Schrader became president in 2008, a role he assumed as the bank faced millions in losses at the height of the financial crisis.
The bank has since seen continued recovery in its portfolio quality and earnings, highlighted most recently by the repurchase and retirement on Feb. 14 of all remaining shares that Exchange Bank sold to the U.S. Department of the Treasury through the Capital Purchase Program in 2008, he said.
Mr. Schrader described the retirement of those remaining shares, which had generated $45 million in capital for the bank as part of a program involving hundreds of institutions around the country, as something of a full-circle for his tenure as president.
It was Treasury's auction of those shares on the private market in July 2012 that freed Exchange Bank from a technicality barring the return of its regular quarterly shareholder dividend, which was suspended in 2008. With 51 percent of those shares held in the trust administering the Doyle scholarship at Santa Rosa Junior College, the resumption of payments in 2012 was widely celebrated.
"It's a new beginning for the bank," said Mr. Schrader, who remains in his current role until March 21. "We retired the stock. Our earnings are going forward. The scholarship is back. Our balance sheet is strong."
The scholarship -- named for Exchange Bank's co-founder and second president, Frank Doyle -- has funded more than $76 million to over 115,000 students since it began in 1948, according to the bank.