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Torrey Pines Sees Continued Growth in Its Loan Portfolio, Assets

Torrey Pines Bank, which passed the $1 billion asset mark in 2009, is on track to reach $2 billion by the end of this year.

As of Sept. 30, the bank that is a subsidiary of Phoenix-based Western Alliance Bancorporation reported total assets of nearly $1.9 billion ($1.888 billion), up from $1.6 billion for the like period in 2011.

Asked whether TPB expects to get to $2 billion this year, CEO Gary Cady said “There’s probably a good chance of that.”

Cady was more interested in talking about the growth of TPB’s loan portfolio, which stood at $1.4 billion at Sept. 30, and increased 15 percent over the year. In the two years from September 2010, Cady said the portfolio increased 42 percent.

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“It’s been a combination of loans to owner-occupied real estate and investor commercial real estate,” he said.

Cady said TPB is picking up a lot of new business from borrowers who are dissatisfied with their previous banks.

“We’re competitive on price, but we’re not the lowest price,” he said. “Our net interest margin (the difference on what a bank charges on its loans and what it pays on deposits) is above 5 percent.”

For the most recent quarter, TPB reported net income of $6.4 million, up from $5.4 million in the like quarter of 2011. For the nine months, net profit was $17.5 million, up 29 percent from the like period of 2011.

TPB continues to unload its affinity credit card unit called Partners First. When the bank couldn’t arrange a sale of the credit card portfolio, it began winding it down. It has about $30 million in assets left, Cady said.

The bank opened a new office in Beverly Hills about six months ago, bringing the total number of branches to 12. Those include three in the Bay Area, the result of TPB acquiring sister bank Alta Alliance, and two in the Los Angeles area.

• • •

BofI raises more money: BofI Holding Co., parent of San Diego-based BofI Federal Bank, said it raised $18.6 million in convertible preferred stock this month. Investors had to purchase shares at $10,000 each. The stock comes with annual cash dividend of 6 percent, and can be converted to common stock at an initial conversion price of $30.50.

The bank that does all its business online said it intends to use the capital to support continued growth.

Over the full fiscal year that ended June 30, BofI grew its assets by about $500 million to bring the total to nearly $2.4 billion, making it the second largest locally based bank in the region.

BofI Holding holds its annual shareholder meeting Nov. 8. The main issues are the ratification of three selected directors to its board, and its chosen accounting firm, Crowe Horwath.

Within the proxy report, shareholders can see that CEO Greg Garrabrants has become the highest paid banker in the region based on the most recent year results. His total compensation of $1.37 million for the fiscal year that ended in June was slightly higher than the pay package of David Blackford, the CEO for California Bank & Trust. That 2011 package, which includes both salary and stock bonuses, was $1.24 million, according to the most recent proxy report from Zions Bancorporation, CB&T’s parent corporation.

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San Diego Trust runs streak to 32: San Diego Trust Bank likes to talk about its profitable quarters, which have a 32 quarter (or eight-year) streak going as of the third quarter.

Net income at the third quarter was $437,000, up 25 percent from the like quarter of 2011. For the nine months, net income was $1.35 million, compared with $920,000 for the like period of 2011.

The bank said part of the reason behind increased profits was that it did not have to put aside as much money into its loan loss reserve balance, along with a decrease in operating expenses, compared with last year.

Total assets at the end of September stood at $217.4 million, compared with $212.5 million at the end of 2011’s third quarter.

SDT said its capital base is among the highest among banks of its peer group. Its total risk-based ratio is 29.4 percent, nearly triple the amount to be considered well-capitalized.

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Bank failures slow this year: This may be another gauge that the economy is finally recovering: Bank failures are down. For the week ended Oct. 19, bank regulators took over two small banks in Florida and another in Missouri, which brings the total failures for this year to 46. Last year at this time, there were 80 bank failures.

The last local bank failure in San Diego was May 2010 when regulators seized 1st Pacific Bank of California and then sold it to City National Bank.

• • •

Small Change: San Diego County Credit Union added live mobile chat services for customers with smartphones. The credit union said it’s only one of two companies offering live mobile chat for both iPhone and Android mobile devices…MetroCorp Bancshares, parent to San Diego-based Metro United Bank and a Texas subsidiary bank, reported third quarter net income of $2.9 million, up from $2.3 million for the like quarter of 2011. Metro United had a cease and desist order lifted in July…The Independent Community Bankers of America, representing some 7,000 community banks, called on regulators to exempt community banks with assets of $50 billion or less from the proposed Basel III capital standards.

Send any news about local financial institutions to Mike Allen via email at mallen@sdbj.com. He can be reached at 858-277-6359.

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