The Washington Savings Bank, F.S.B. Announces Retirement of the
Chief Executive Officer
BOWIE, Md., Feb. 11 /PRNewswire-FirstCall/ -- The Washington Savings Bank,
F.S.B. (AMEX:WSB), a federally-chartered, federally-insured savings bank, with
principal executive offices in Bowie, Maryland, today announces that William J. Harnett has decided to retire as Chief Executive Officer. Mr. Harnett, who
will remain as Chairman of the Board, has served as the Chief Executive Officer
since August 1988, and has been instrumental in its growth.
Commenting on his retirement, Mr. Harnett stated "WSB has grown considerably
since its founding in 1982. WSB is currently enjoying record profitability and
a record high stock price. At age seventy-four, I have made a decision to
transfer the duties and responsibilities to a successor who will lead the bank
in its continuing business efforts. While I have elected to retire so as to
allow more time for personal interests, I will continue to serve as the
Chairman of the Board and be of counsel to my successor, pledging my continued
support to the Board of Directors and management in its continuing efforts
under its strategic plan." Mr. Harnett also commented on WSB's current activities, stating "This past year
we have effected many changes within the Company so as to deal with the issues
raised in the earlier supervisory agreement we are under. The Board, working
with management, will continue to address the issues raised under the
agreement, including on-going review of our loan portfolio composition, loan
concentrations, and risk management. The bank is committed to reducing its
concentration in residential construction lending, with primary reductions in
the level of non-owner occupied construction lending which is the right
approach to take as interest rates rise, and housing values continue to see
double digit increases." "I wish to thank my fellow directors, officers, employees, and shareholders for
the chance to serve as chief executive officer for these many years, for it is
due largely to you and our customers that we have accomplished all that we
have." WSB's independent directors, who had been previously informed of Mr. Harnett's
desire to retire, are conducting the search for his successor. In the interim,
Kevin P. Huffman, the bank's President and Chief Operating Officer, will assume
leadership of the management team until the new chief executive officer is in
place.
The Board and management's decision to further reduce construction lending of
the nature noted above, along with a tightening of credit standards, may affect
future earnings and growth. The Board and management are of strong belief that
these changes are in the best long-term interest of the bank and its
stockholders. At the current time, WSB cannot predict the short-term or
long-term effect of these changes on current levels of WSB's assets,
liabilities, profitability or continued growth. Current management is working
on developing a revised business plan, and it is expected that the new chief
executive officer will have a significant role in implementing WSB's future
strategic direction. DATASOURCE: Washington Savings Bank, F.S.B.
CONTACT: Kevin P. Huffman, President of the Washington Savings Bank, F.S.B., +1-301-352-3120 Web site: http://www.twsb.com/
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