Bank of the Internet Celebrates 1st Anniversary
Since it’s been merging with other banks from the time it was born in 1998, California Bank & Trust has the process down pat.
Earlier this month, the San Diego-based lender completed the conversion of Irvine-based Eldorado Bank, integrating 14 branch offices and about 300 employees into its system.
With the addition, CB & T;, with about $8 billion in total assets, becomes the largest institution headquartered here (although it is a subsidiary of Zions Bancorporation, based in Salt Lake City) and the sixth-largest in California.
To help smooth the inevitable glitches that arise when a new bank takes over, CB & T; used a “buddy system” it developed over the past few years while it was acquiring other banks.
The program matches up managers and other employees from Eldorado branches with their counterparts in CB & T.;
Along with the expansion of branches that now total 97, CB & T; has also changed leaders.
Former chairman and CEO Robert Sarver resigned in May and was replaced by David Blackford, who headed up the bank’s real estate finance unit and its Orange County branches.
Sarver, who joined the bank in 1998 and was instrumental in the Zions Bank acquisition of San Diego’s Grossmont Bank, and later Sumitomo Bank, has returned to real estate development, a CB & T; spokesman said.
Blackford has 27 years in banking, including stints at Bank One in Arizona where he headed up that institution’s Southwest division real estate lending. He also managed the largest real estate portfolio in all of Bank One.
His career includes serving as president of Far West Financial in Orange County and as senior vice president of First National Bank of Denver.
The Irvine resident will be splitting his time between CB & T;’s Orange County office and its San Diego headquarters. To a question whether the bank may move its headquarters out of San Diego, Blackford said, “Absolutely not.”
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Bank Of The Internet A Year Old:
Online banking is very much alive and thriving in Carmel Valley.
After a full year in operation, the Bank of the Internet has shattered estimated growth projections, hitting $156 million in assets as of June 30.
“Originally we thought we’d be about $60 million after a year,” said President Gary Lewis Evans. Over three years the target was to hit $250 million, but obviously the virtual bank (which is technically a savings and loan) should easily reach that by the end of this year.
“One of the most remarkable things is that we’re doing this without much marketing,” Evans said. Bank of the Internet is shelling out about $5,000 monthly for marketing and ads, meaning its cost per new account is running about $20, far below industry averages.
Perhaps even more remarkable is Bank of the Internet is on track to break even this quarter, Evans said.
“Most new banks take about three years before they become profitable,” he said.
Since its inception July 4 of last year, Bank of the Internet has increased its staff by five people to 20, and still maintains a single office in Carmel Valley.
Barona Casino Gets $200 Million:
The Barona Band of Mission Indians said it secured a $200 million loan led by Bank of America and Wells Fargo Bank, and with participation from nine other lenders, for construction of a new resort and casino on its reservation.
Clifford LaChappa, chairman of the Barona Indians, said the bank financing follows up on last year’s finance package for a championship golf course, which opened in January.
The Barona Valley Ranch Resort & Casino will be completed in phases and entails a 2,270-space parking garage and 14,000-square-foot events center, both scheduled to be finished by this year.
The next phase includes a 400-room hotel and 315,000-square-foot ranch casino, to be finished by late 2002.
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Community Builds In Escondido:
Community National Bank, formerly called Fallbrook National Bank, held a groundbreaking ceremony earlier this month at its planned headquarters office in Escondido. Community National said the 30,000-square-foot building is the first Class A space to be built in the city for a long time. Fees for the construction were reduced by $41,000 because it’s in a business enhancement zone.
Wells Names New President:
Wells Fargo & Co. named Nathan Christian as regional president for its Southern California Community Banking unit, which encompasses six counties: Riverside, Santa Barbara, San Bernardino, Ventura, San Diego and Imperial counties. He replaces Robert Worth, who took over as regional president of Wells’ Bay Area region.
Christian will continue to be responsible for Wells’ Border Banking Business unit which includes more than 50 bank offices and more than 700 employees from Brownsville, Texas, west to its headquarters in San Diego.
The Southern California banking unit includes more than 165 offices and 2,900 employees.
Please fax banking items to Allen at (858) 571-3628 or e-mail them to mallen@sdbj.com.
