Home Capital Announces Pending Retirement of Gerald Soloway, Appointment of Robert Blowes as Interim CFO and Deposit Access Maintained
April 24, 2017
- Gerald Soloway to Retire From Board Upon Naming of a Replacement
- Robert Blowes to Become Interim Chief Financial Officer Following Q1 Filing
- Home Retains Wide Access to Deposit Broker Channel
Home Capital Group Inc. ("the Company" TSX: HCG) today announced several board and management changes. Gerald Soloway, the Founder of the Company, has indicated that he will step down from the board when a replacement with recognized expertise in financial services is named. Robert Blowes will assume the role of interim Chief Financial Officer following the filing of the Company's first-quarter results, at which time Robert Morton will assume responsibilities for special projects outside the financial reporting group.
Also, The Bank of Nova Scotia has advised Home Capital it will resume sales of Home Trust deposit products today, subject to a $100,000 per-client cap.
"These are important steps in rebuilding confidence and putting the focus back on our profitable underlying business and its solid performance," said Kevin Smith, chair of the board of Home Capital. "We know that we have not met the full expectations of some of our valued stakeholders, which we deeply regret. These changes will ultimately result in enhanced management and governance leadership, and bring valuable new perspectives to Home Capital."
Mr. Smith added: "We value our relationship with all of our deposit brokers. We are in close contact with them, and work diligently to ensure the widest possible access to our products."
Home Capital's business is profitable and robust, with low loan loss rates, as demonstrated by preliminary first quarter financial results released on April 21. The Company is committed to a solid balance sheet, and maintains capital ratios well in excess of regulatory minimums.
Board and Management Changes
Mr. Soloway feels it is in the best interests of the company if he steps down as soon as the board has attracted a strong director with financial services expertise.
The Company has a short list of well-qualified board candidates, and intends to identify a replacement for Mr. Soloway as soon as possible. In the meantime, Mr. Soloway will stand for re-election to the board at the May 11 Annual General Meeting (AGM).
Mr. Blowes will serve as interim CFO until the Company concludes its search for a new CEO, who will select a permanent replacement. The Company is actively recruiting a CEO, and a successor will be named as soon as possible. This is a priority for the board.
Mr. Blowes joined the Company as senior vice-president, Finance, in 2010 and was promoted to CFO in 2012. He served as CFO until his retirement in December 2014. During the period from his retirement until his May 2015 election to the board, he was not involved in the operations or financial management of the Company.
"We are pleased to welcome someone as experienced as Bob Blowes back into the role of CFO," said Bonita Then, interim CEO of Home Capital. "Bob brings additional strength to the team, and will be a valuable resource as we push ahead with the execution of our strategy."
Prior to joining the Company, Mr. Blowes was a Partner at Ernst & Young for 25 years and was part of the Financial Services Industry Group for more than 10 years.
Mr. Blowes, currently a director of the Company, will stand for re-election at the AGM.
Deposit Offerings Update
Home Trust deposit products remain available through most leading Canadian financial institutions. Some of these (including Scotiabank) have instituted a cap of $100,000 – the upper limit for Canada Deposit Insurance Corp. insurance.
Home Trust may offer clients at these brokers the right to transfer balances in excess of $100,000 to the Company's federally regulated banking subsidiary, Home Bank, which is a member of Canada Deposit Insurance Corp.
"Home Trust's deposit products remain widely available across Canada, as they have been for many years, providing Canadians with attractive yields supported by our profitable business and 30-year track record of success," said Ms. Then.
Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of insured residential mortgage products, consumer lending and credit card services. In addition, Home Trust offers deposits via brokers and financial planners, and through its direct to consumer deposit brand, Oaken Financial. Home Trust also conducts business through its wholly owned subsidiary, Home Bank. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.
Home Capital Group Inc.