Five Star Bank’s parent company has announced several management changes, replacing its top finance official just months after replacing its CEO.
Warsaw-based Financial Institutions said that Kevin B. Klotzbach has been named the bank’s executive vice president and chief financial officer, in addition to his current role of treasurer.
He replaces Karl F. Krebs, who had served as CFO since 2009. Krebs will stay at the bank for a “brief transition period” to ensure a “smooth first-quarter 2013 closing process” and for the filing and certification of quarterly financial statements, as mandated by federal law.
Klotzbach will work alongside Martin K. Birmingham, who was named president and CEO in March, succeeding longtime CEO Peter Humphrey, who abruptly resigned last summer. Humphrey, whose family controlled the banking company for more than a century and is still a large shareholder, remains on the board.
“This succession plan allows us to simplify operations, creating an improved cost structure,” Birmingham said. “On behalf of the entire company, I thank Karl for his contributions. He helped us significantly expand the markets we serve, the profits we generate and the return we provide to our shareholders. We wish him well in his future endeavors.”
Klotzbach, 60, will be responsible for all financial functions, including accounting and reporting, treasury, insurance, planning and analysis, and investor relations. He will remain a member of the bank’s Executive Management Committee.
Klotzbach had been a senior vice president since 2001 and was chief investment officer of Greater Buffalo Savings Bank from 1999 to 2001. The Buffalo State College graduate and Western New York native previously held executive, finance and risk-management positions at KeyBank, Empire Federal Savings Bank and Merrill Lynch Asset Management.
The bank also promoted Michael D. Grover to the new post of chief accounting officer.
Grover, who joined Five Star in 1999 as a senior accountant, was previously senior vice president for financial reporting and tax. The longtime Western New York resident and graduate of the State University of New York College at Geneseo spent much of his career as a public accountant at Battaglia, Andrews and Moag – now Freed Maxick – and at KPMG LLP.
“Kevin and Mike are ideal choices to help lead Financial Institutions and Five Star forward. Both have worked alongside our executives and my fellow board members for more than a decade,” said John E. Benjamin, the board chairman, whose assumption of the board leadership coincided with many of the executive changes at the bank.
“We believe their insights and expertise will make substantial contributions as we pursue continued growth in the years to come.”