Venture leaders bow out

DuPONT - Most of Venture Financial Group’s executives and board members no longer are associated with the company, having stepped down because the company has such a limited role now that its primary asset, Venture Bank, was closed and sold this month.

That’s according to a new Securities and Exchange Commission filing this week, which shows that Venture Financial Group’s executives and most of its board members have terminated their relationship with the company or resigned.

“In connection with the winding down of the company, the board of directors terminated the continued employment of each of the company’s remaining executive officers,” the filing states. Those executive officers are: Ken Parsons, CEO; Jim Arneson, the former president and CEO of Venture Bank; Sandra Sager, chief financial officer; and Leigh Baxter, secretary.

The following directors also have resigned, according to the filing: Linda Buckner, Larry Schorno, Keith Brewe, Rick Panowicz, Sonny Bridges, Pat Martin and Jewell Manspeaker. Parsons and Arneson remain as directors, the filing states.

Parsons could not be reached Thursday for comment.

Parsons and Arneson’s continuing role with Venture Financial Group wasn’t clear from the filing, although they might be on hand to wrap up the company’s responsibilities.

“The company is considering options for winding down the affairs of the company, which may include dissolution and winding up of the company pursuant to state law,” the filing states.

In a regulatory filing on Sept. 17, the company said it planned to contact creditors about an equitable distribution of assets “outside of any bankruptcy proceeding.”

Although Venture Financial’s main asset, Venture Bank, was closed and sold to North Carolina-based First-Citizens Bank and Trust Co. this month, the company still has assets of $2.5 million in cash and cash equivalents and liabilities of nearly $30 million. The company liabilities are $22.7 million in junior subordinated debt, accrued and unpaid interest of $800,000 and “known contractual and other obligations of approximately $6 million,” according to the Sept. 17 filing.

Alan Hess, a professor of finance and business economics at the University of Washington, said Thursday that creditors most likely will be repaid in order of priority but will receive only pennies on the dollar because liabilities “greatly exceed” assets.

“The debt has priority over shareholders,” Hess said.

Venture officials acknowledged as much in a letter to shareholders this month.

“We believe all value in the shares of the parent company, Venture Financial Group, has been irretrievably lost,” the letter stated.

Rolf Boone: 360-754-5403

rboone@theolympian.com