Dive Brief:

• Wells Fargo has tapped Kyle Hranicky to become CEO of commercial banking, replacing Perry Pelos, effective immediately, the bank announced Friday.
• Pelos will transition to an advisory role until he retires in April, the bank said. "This was the right time for my family and me to make this decision, and for the company to make a leadership change," Pelos said in a statement.
• Hranicky’s promotion marks the first time Wells Fargo CEO Charlie Scharf has elevated an executive from inside the bank to a role on its operating committee, according to Bloomberg. In his nearly two years as CEO, Scharf has populated top openings with former colleagues poached from banks such as BNY Mellon and JPMorgan Chase.

Dive Insight:

Pelos became CEO of commercial banking last year, when Wells Fargo split its wholesale banking unit — which Pelos was overseeing at the time — into a commercial banking unit and another for corporate and investment banking. He joined Wells Fargo in 1987 as part of a commercial banking training program.

In his statement, Pelos praised the "meaningful work" his team has performed, including resolving a 2015 consent order the Office of the Comptroller of the Currency (OCC) put in place over anti-money laundering compliance.

Scharf said Pelos "has been an especially strong voice on the operating committee, and his common-sense approach to business and willingness to deal with difficult issues will be missed."

Scharf said in July that the commercial banking unit is adding bankers, according to Bloomberg, and called the business a growth opportunity — a prospect Hranicky echoed.

"I believe we have a significant opportunity to grow and continue to improve the business, and I will work closely with Perry during this transition to ensure we focus on our key strategic priorities so we can stay nimble, adapt to ongoing market changes and make sure our business is structured in the future to accomplish these objectives," Hranicky said.

Hranicky joined Wells Fargo in 1995 as a commercial banking analyst, and has since managed the bank’s loan syndications group, its energy group and its corporate banking unit, the bank said. 

"Kyle’s broad experience in commercial banking and his longstanding relationships with Wells Fargo clients and colleagues will serve him well as head of the business," Scharf said. "He’s built a strong track record during his time at Wells Fargo, and I know he’ll bring both consistency and fresh perspective to the role."