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Kentucky Banker to Take Over at Riggs

After Merger, PNC Expansion Strategy to Include Branches in D.C. Suburbs

By Terence O'Hara
Washington Post Staff Writer
Friday, March 18, 2005; Page E03

PNC Financial Services Group Inc. named longtime Kentucky banker Michael N. Harreld to take over Riggs Bank's operations after Riggs's merger with PNC this spring.

Harreld, a native of Kentucky who has worked at PNC and its predecessor in Kentucky for his entire 36-year career, will be the Washington region president for PNC, responsible for building on Riggs's 51 branches in the area.

PNC officials said the merger is expected to take place on May 13, pending shareholder and final regulatory approval. Officials said PNC will soon release details of an expansion strategy that includes several new suburban branches.

"With his broad expertise and long record of success, Mike Harreld is the right person to lead PNC's growth in Greater Washington," James E. Rohr, chairman and chief executive of PNC, said in a statement. "He will be surrounded by a leadership team that includes experienced executives from both PNC and Riggs."

Harreld, 60, could not be reached for comment yesterday.

In addition to Harreld, PNC named two PNC executives and one Riggs executive to the Washington region management team. Also, Riggs chief executive Lawrence I. Hebert will join PNC initially in a "senior advisory capacity to assist with the transition." Hebert, who has worked for Riggs's largest shareholder, Joe L. Allbritton, for more than 20 years, is not expected to join PNC permanently.

Laila Batz-Krause, a regional community banking executive at PNC, was named territory manager for Washington retail banking, with responsibility for the branch system and business banking.

Wayne Hunley, a longtime PNC corporate banker, will be the senior corporate banking executive in Washington, responsible mainly for middle-market commercial banking, treasury management, government services and nonprofit clients.

Glenn E. Kinard, a well-regarded banking executive at various Washington institutions for more than 30 years who joined Riggs in 2001, was named assistant territory manager. He will oversee some aspects of PNC's commercial banking in the region. Kinard was one of the architects of the retail branch growth strategy Riggs implemented early last year. The strategy had barely been implemented when a money-laundering scandal overwhelmed the company in April. The scandal, which resulted in a guilty plea by the bank for failing to report suspicious transactions in its now-shuttered international division, led to Riggs National Corp.'s pending sale to PNC for $652 million.

Harreld, according to a biography provided by PNC, became chief executive of Louisville-based Citizens Fidelity Corp. in 1989 and stayed on as PNC's top regional banking executive after Citizens merged with the Pittsburgh company in 1993. He received a law degree from the University of Louisville in 1969, the year he joined Citizens.

Harreld was on the same Louisville high school basketball team in the 1960s as former Washington Bullets star Wes Unseld. Harreld's association with Washington is limited mostly to legislative advocacy work he conducted in the 1980s, when he was active in the American Bankers Association.

"From what I know of Riggs and their turmoil, I would say you couldn't have asked for a more solid, forthright and excellent manager," said Louisville Mayor Jerry E. Abramson, a friend of Harreld's since childhood. "There are very few civic successes that this community has enjoyed that Michael hasn't been a part of, or a leader of. It's a major loss to the civic and community base of our home town."


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