* Suspends quarterly dividend
* Says HISA balance to slump 50 pct
* Hires 3 new directors (Adds more background)
May 8 (Reuters) - Home Capital Group Inc estimated on Monday that the balance in its high-interest savings accounts (HISA) halved in the past week and said it had suspended its dividend and tapped its C$2 billion ($1.46 billion) credit line for the second time.
Canada’s biggest non-bank lender also said it hired three new directors to its board and a named a new chairwoman as it continues its management overhaul.
Home Capital has suffered a crisis of confidence since a securities regulator alleged earlier this year that its top executives hid mortgage broker fraud from investors.
As nervous depositors pull their money out and roughly three-quarters of Home Capital’s funding needs coming from guaranteed investment certificates (GICs), investor focus is also on the lender’s term deposits and other funding sources, many of which are maturing or up for renewal this year.
Home Capital said the balance in its HISAs is expected to slump to about C$192 million on Monday, down 50 percent from a week ago.
The company also said it has now withdrawn a total of C$1.4 billion, including a draw down of C$1 billion a week ago.
The lender paid a quarterly dividend of 26 Canadian cents per share on March 1, according to Thomson Reuters data.
Home Capital said it hired Claude Lamoureux, Paul Haggis and Sharon Sallows as directors to its board, effectively immediately.
Brenda Eprile, who joined the board as an independent director in 2016, will replace Kevin Smith as chair of the board.
Before joining Home Capital, Eprile worked at PricewaterhouseCoopers LLP as a senior partner responsible for the company’s Canadian risk consulting practice.
Lamoureux retired from the Ontario Teachers’ Pension Plan in 2007, while Haggis was the CEO of the Ontario Municipal Employees Retirement System from 2003 to 2007.
Sallows is currently a trustee of Riocan Real Estate Investment Trust and Chartwell Retirement Residences .
Home Capital has 13 directors, including those named on Monday according to the company’s website.
Total deposits in the lender’s less-liquid GICs stood at C$12.64 billion as of May 5, down from C$12.68 billion on April 28.
$1 = C$1.37 Reporting by John Benny; Editing by Savio D'Souza and Martina D'Couto