Franklin Financial Network Hires 40-Year Banking Veteran as First General Counsel
Steve Groom said his goal is to add value to the organization, “and the quickest way I can do that is to understand the bank and its folks, and where I can help.”
July 08, 2019 at 05:18 PM
3 minute read
After an internal study recommended that Franklin Financial Network Inc. in Tennessee hire its first general counsel, the bank holding company chose veteran banking lawyer Steve Groom for the job.
Groom told Corporate Counsel on Monday that his goal is to add value to the organization, “and the quickest way I can do that is to understand the bank and its folks, and where I can help.”
He said his goals would include identifying and eliminating risk, resolving disputes and managing outside counsel—all ways to enhance shareholder value in the company.
Another priority, he said, will be to look at the overall risk management profile of the institution “because that's on everybody's radar—the board, management, regulators and customers. I've done a lot of that over the years, as part of governance, risk and compliance profiles of public companies.”
CEO Myers Jones said, “We had an opportunity to hire an exceptional candidate who possesses a lot of skill, some of which we hope we don't have to take advantage of, such as crisis management.”
Franklin Financial is an 11-year-old holding company for the growing Franklin Synergy Bank, which has $4.2 billion in assets and 15 branches in the Nashville area.
Last year the bank brought in Julian Bibb III, a retired banking lawyer, to help it determine its legal needs. Bibb said he recommended the bank hire a full-time general counsel, and he oversaw the search and hiring process.
“I had worked with Steve previously,” he said, “and have known him for more than 30 years.” Bibb, who said he does not want a full-time general counsel job, will remain as vice president and deputy counsel to Groom.
Until this week Groom was in private practice at Neal & Harwell in Nashville, Tennessee. Prior to that he served 16 years at Corrections Corporation of America, now CoreCivic, as executive vice president and general counsel.
He worked a short time at Butler Snow in Nashville, and 11 years at Farris, Warfield & Kanaday, a Nashville law firm that merged with Stites & Harbison in 2001. Groom earned his law degree from the University of Memphis Humphreys School of Law.
Chief financial officer Chris Black said, “We are excited about Steve and his experience with banking and public companies. Before he went to law school, he worked in banking right out of college, so banking is woven throughout his career.”
The executives said Groom's hiring was not driven by any legal threat, but in April the New York law firm of Purcell Julie & Lefkowitz announced a class action alert stating it was investigating a “potential breach of fiduciary duty” against Franklin's board. The announcement came as Franklin's stock price dropped 30% over the past year, although it has been more bullish recently.
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