Sovereign Appoints Joseph Campanelli as President and CEO
PHILADELPHIA, Oct. 11 /PRNewswire-FirstCall/ -- Sovereign Bancorp, Inc.
("Sovereign") (NYSE: SOV), parent company of Sovereign Bank, announced
today that Jay S. Sidhu has resigned and retired as Sovereign's Chief
Executive Officer and President and Sovereign Bank's Chief Executive
Officer effective today for family health related reasons. Mr. Sidhu will
serve as non- Executive Chairman until December 31, 2006.
The Board and the Company thanked Jay for his outstanding service to
Sovereign over a long and distinguished career. Under Mr. Sidhu's
leadership, Sovereign grew from a nearly insolvent thrift with less than $1
billion in assets to a major American financial institution. His legacy is
a bank with over $89 billion of assets, 800 branches, 2,000 ATMs, and
12,000 team members extending from New Hampshire to Maryland. The Board of
Directors formed an Executive Search Committee to conduct a search for Mr.
Sidhu's replacement.
The Board of Directors also appointed Joseph C. Campanelli as President
and Chief Executive Officer of the Company. Mr. Campanelli will be
considered by the Executive Search Committee as Mr. Sidhu's permanent
successor as part of its search process.
Mr. Campanelli has been an executive team member of Sovereign since
1997 and he previously served as Sovereign's Vice Chairman and as Chief
Executive Officer of Sovereign Bank's New England division. Mr. Campanelli
will report to the Board of Directors through co-lead directors, P. Michael
Ehlerman and Juan R. Inciarte. Mr. Campanelli said, "We will focus on
providing our customers with the service you have come to expect from
Sovereign as we move forward."
About Sovereign
Sovereign Bancorp, Inc., ("Sovereign") (NYSE: SOV), the parent company
of Sovereign Bank, is an $89 billion financial institution with nearly 800
community banking offices, over 2,000 ATMs after giving effect to the
recently announced branding agreement in which Sovereign ATMs will be
placed in CVS/pharmacy locations and approximately 12,000 team members with
principal markets in the Northeast United States. Sovereign offers a broad
array of financial services and products including retail banking, business
and corporate banking, cash management, capital markets, wealth management
and insurance. Sovereign is the 18th largest banking institution in the
United States. For more information on Sovereign Bank, visit
http://www.sovereignbank.com or call 1-877-SOV-BANK
Note:
This press release contains financial information determined by methods
other than in accordance with U.S. Generally Accepted Accounting Principles
("GAAP"). Sovereign's management uses the non-GAAP measure of
Operating/Cash Earnings, and the related per share amount, in their
analysis of the company's performance. This measure, as used by Sovereign,
adjusts net income determined in accordance with GAAP to exclude the
effects of special items, including significant gains or losses that are
unusual in nature or are associated with acquiring and integrating
businesses, and certain non-cash charges. Operating/Cash earnings for 2005
and 2006 EPS purposes represent net income adjusted for the after-tax
effects of merger-related and integration charges, certain restructuring
charges, other-than-temporary impairment charges on Fannie Mae and Freddie
Mac preferred equity securities, proxy and related professional fees and
the amortization of intangible assets. Since certain of these items and
their impact on Sovereign's performance are difficult to predict,
management believes presentations of financial measures excluding the
impact of these items provide useful supplemental information in evaluating
the operating results of Sovereign's core businesses. These disclosures
should not be viewed as a substitute for net income determined in
accordance with GAAP, nor are they necessarily comparable to non-GAAP
performance measures that may be presented by other companies.
This press release contains statements of Sovereign's strategies,
plans, and objectives, as well as estimates of financial condition,
operating and cash efficiencies and revenue generation. These statements
and estimates constitute forward-looking statements (within the meaning of
the Private Securities Litigation Reform Act of 1995), which involve
significant risks and uncertainties. Actual results may differ materially
from the results discussed in these forward-looking statements. Factors
that might cause such a difference include, but are not limited to, general
economic conditions, changes in interest rates, deposit flows, loan demand,
real estate values and competition; changes in accounting principles,
policies, or guidelines; changes in legislation or regulation; Sovereign's
ability in connection with any acquisition to complete such acquisition and
to successfully integrate assets, liabilities, customers, systems and
management personnel Sovereign acquires into its operations and to realize
expected cost savings and revenue enhancements within expected time frame;
the possibility that expected one time merger-related charges are
materially greater than forecasted or that final purchase price allocations
based on the fair value of acquired assets and liabilities and related
adjustments to yield and/or amortization of the acquired assets and
liabilities at any acquisition date are materially different from those
forecasted; other economic, competitive, governmental, regulatory, and
technological factors affecting the Company's operations, integrations,
pricing, products and services; and acts of God, including natural
disasters.
Sovereign Bancorp is followed by several market analysts. Please note
that any opinions, estimates, forecasts, or predictions regarding Sovereign
Bancorp's performance or recommendations regarding Sovereign's securities
made by these analysts are theirs alone and do not represent opinions,
estimates, forecasts, predictions or recommendations of Sovereign Bancorp
or its management. Sovereign Bancorp does not by its reference to any
analyst opinions, estimates, forecasts regarding Sovereign's performance or
recommendations regarding Sovereign's securities imply Sovereign's
endorsement of or concurrence with such information, conclusions or
recommendations.
SOURCE Sovereign Bancorp, Inc.
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Related links:
http://www.sovereignbank.com
CONTACT:
Financial Contact - Mark McCollom,
+1-610-208-6426, mmccollo@sovereignbank.com, or Stacey Weikel,
+1-610-208-6112, sweikel@sovereignbank.com, or Media Contact - Ed
Shultz, +1-610-378-6159, eshultz1@sovereignbank.com, all of
Sovereign Bancorp, Inc.
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