I am continually being asked why Louisa Community Bank was closed by the Bank Regulators and I believe The Levisa Lazer is a good source to answer the question by giving a brief summary of the Bank’s history as follows:
- The Bank was founded in 2006 with 66 investors raising $6,000,000.00 and petitioning Kentucky Department of Financial Institutions for a charter;
- The Bank grew under the Primary direction of Ed Purdom as CEO; Joe Adams as Vice President/Senior Loan Officer; Charlotte Enix as CFO; Patty Carter as Human Resource Officer; and Gene Wilson as President and Chairman of the Board.
- In 2012 the Bank began paying dividends to all the shareholders and again in 2013.
- The Bank Regulators gave management a high rating and no longer felt needed, resigned as President and Chairman of the Board.
- Ed Purdom left the Bank in 2014 and Charlotte Enix became acting CEO with the Bank making a net profit of $656,000.00 in 2014.
- The Board of Directors unanimously approved Howard Sanders for the full time CEO with vast banking knowledge but he was disapproved by Kentucky Banking Commissioner Charles Vice but approved Kevin Mullins with NO CEO experience.
- The Majority Directors namely: Roger Smith, Chairman of the Board from Huntington, West Virginia; Monty Hay, from Ashland, Kentucky; Lonnie Hannah, from Delbarton, West Virginia; David McKenzie, Jr., from Louisa, Kentucky; Kevin Mullins from Tennessee and Joe Kauffman from somewhere in Georgia began depilating the Bank’s capital in 2015 over the majority shareholders objection to no avail.
- In 2016 the majority shareholders attempting to save the Bank, began looking for a purchaser. This resulted in the majority board firing shareholders and officers of the Bank, Patty Carter and Charlotte Enix.
- With no influence with the direction of the Bank and being only 2 of 7 directors Kathy Reid and I resigned approximately 2 years ago.
- In 2019 the Bank Regulators advised management of the Bank (not the shareholders) they needed to raise capital and stop the hemorrhaging of the Bank which was over a monthly loss of $85,000.00.
- The majority shareholders advised the Banking Regulators in 2016 the Bank would fail under existing management and our prediction came true.
- The Majority shareholders believe Kentucky Farmers Bank will be good for our community, although regrettably we lost our investment of $6,000,000.00.
Gene A. Wilson
3rd Largest Shareholder