Execs fill void at Exchange Bank

Coming out of semi-retirement to help run Sonoma County's largest commercial bank was not on C. William Reinking's to-do list, but there he was Thursday, busy in meetings following the resignation of the bank's top executive.

Both Reinking, the new CEO, and William Schrader, the new president, are filling the void left by J. Barrie Graham, who unexpectedly stepped down from both posts Monday.

Reinking had served in those roles for 18 years before turning over the reins to Graham, who Reinking had brought to Exchange Bank.

"This is in my blood. I grew up with this bank. I'll stay in this active role as long as it takes," said Reinking, whose father, Charles Reinking, led the bank for 21 years.

Still, the 66-year-old Reinking said he has not signed on for the long-term. Schrader is primarily responsible for bank operations, he said.

"He's going to be the man in charge. He's there for the long haul," Reinking said.

Schrader, 57, has been with Exchange Bank more than 30 years, serving as chief operating officer before his elevation to president. He said Reinking will play an important role in leading the bank.

"These are new challenges for me. I value his mentoring and coaching," Schrader said.

Both men emphasized Exchange Bank has a broad and experienced management team that will steer it back from a rough year. The bank recorded losses in two of the past three quarters -- its first in at least 50 years, including a $3.1 million hit during the April-June period.

Exchange Bank's problems primarily lie with loans developers have defaulted on during the deep housing downturn.

Putting the bank's balance sheet back in positive territory by the end of this year has been the subject of meetings this week with department heads and other employees at several Exchange Bank offices, Reinking said.

No cuts or job reductions are planned, Reinking and Schrader said.

The meetings were planned before Graham's resignation, which has led to additional questioning from bank employees, Reinking said.

"We had planned to go out and talk to these people anyway about the earnings and what to expect. And now we've just got one more subject," he said.

Reinking declined again Thursday to discuss the specific reason for Graham's departure. Graham has not returned phone calls after releasing a statement Tuesday in which he said "it's time to move on to pursue other interests."

All Reinking would say is Graham gave his resignation to the board on Monday and left the bank's main office in downtown Santa Rosa later that day.

Graham called a number of close associates Monday to give them the news. One said Graham took responsibility for the bank's recent losses and that the resignation would allow him to get going on a long list of things to do.

You can reach Staff Writer Michael Coit at 521-5470 or mike.coit@pressdemocrat.com.