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Banking Pacific Community joins growing list of local banks



ITLA Capital Reports Bank’s 22nd Consecutive Quarter of Record Earnings

There’s another new local community bank.

This one is based in San Marcos and is called Pacific Community Bank and it received regulatory approval last month from the state Department of Financial Institutions and the FDIC to begin raising capital.

A group of nine directors and six founders are expected to invest about a third of the bank’s capital base, estimated to be between $7.6 million and $9 million. The remainder should come from outside shareholders, a group that President Jim Kelley says should be between 300 to 400.

Besides Kelley, other directors are Robert Cairns, Gabriel Castano, Walter Cobb, Michele Hubbard, Michael Lenzner, John Luttgens, Stuart Rubin, Mark Santar and chairman John Plavan.

The reason for forming a new community bank are evident, Kelley said. As more locally based lenders are purchased by out-of-area banks, borrowers and depositors look for a place they can call their own.

But what about that name which sounds very similar to a group of local banks, i.e., 1st Pacific Bank of California, Pacific Trust Bank, Southwest Community Bank, or Community National Bank?

“We wanted a name that related to North County, but all those names were already taken,” Kelley said. “It’s a little like naming a child; often the one that gets selected is the one that has the least objections.”

This is Kelley’s first stint as president but he’s been in banking for most of his career, logging in about 16 years in the industry.

He began in 1979 as a management trainee for San Diego Trust & Savings Bank, and also worked for California First Bank, the Bank of California, Grossmont Bank, all of which have been acquired and are no longer around, and most recently, Rancho Bernardo Community Bank, which still is, before taking on the job as point man for the new bank.

“It’s been pretty intense, coordinating all the different pieces that go into setting things up, making sure all the right steps are made, hiring the right people and taking care of all the details for this project that has lasted about a year and a half,” he said.

Pacific Community will concentrate on making small business loans from about $50,000 to $1 million for borrowers along the Highway 78 corridor. The proposed office for the new bank, which plans to open in July, is at 1003 W. San Marcos Blvd.

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ITLA Net Rises:

ITLA Capital Corp., the La Jolla-based parent of Imperial Capital Bank, reported net income of $4.7 million, or 67 cents a diluted share for the first quarter ended March 31, compared with net income of $4.2 million, or 58 cents a diluted share for the like period in 2000.

Net interest income for the quarter was $13.6 million, up from $12.9 million for the like quarter in the previous year. The increase was due mainly to the addition of earning assets acquired by ITLA’s real estate investment trust subsidiary and a large increase in the bank’s loan portfolio, which boosted the portfolio to $129.3 million.

CEO George Haligowski said the bank’s 22nd consecutive quarter of record earnings was achieved through selective asset origination, focused credit discipline and continued operating efficiencies.

Total assets increased $28 million to $1.44 billion. As of March 31, nonperforming assets were $31.4 million, or 2.18 percent of total assets, compared to $20.4 million, or 1.44 percent of total assets at Dec. 31, 2000.


1st Pacific Signs Director:

1st Pacific Bank of California, which opened for business late last year, elected three new directors at its shareholders meeting last month, including former San Diego mayor Susan Golding.

Also elected were Richard Chen, CEO of CSB Group, and Al Logan, a partner in the accounting firm of Hutchinson and Bloodgood.

Golding, who now works as a government consultant and was 1st Pacific’s No.1 depositor, joins an 11-member board that also includes Al and Samy Colucci, principles of CBC Investments, and former port commissioner Susan Lew.

1st Pacific, which opened in November and has offices in La Jolla and Oceanside, had about $27 million in total assets and $14.5 million in loans at the end of March.

The CEO is Rob Hildt, a 28-year veteran of banking, including the Bank of Commerce and Pacific Commerce Bank.

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Community Grows Fast:

Community National Bank reported net income of $302,000, or 11 cents per diluted share for its first quarter, compared to $44,000, or 2 cents per diluted share in the 2000 first.

The big reason for the huge increase in profits an increase of about $100 million in the bank’s loan portfolio to $265 million from the prior year’s first.

CEO Tom Swanson said the bank decided to retain its SBA loan portfolio, rather than selling them on the secondary market, as the main reason behind the 57 percent rise in loans.

“Our seasoned lenders have allowed us to expand the balance sheet, driving revenues with increased interest income,” Swanson said. About 35 percent of Community National’s portfolio are in SBA loans, while another 35 to 40 percent are in commercial loans.

The bank has $316 million in total assets, up from $215 million in the previous year’s first.

Swanson said he hasn’t seen any real slowdown in loan growth but expects it as the economy slows. The bank is still on track to break into the $400 million asset level by year end, he said.

Community National, which changed its name from Fallbrook National Bank last October, opened its fourth office in Escondido last month.


Tribe Forms Joint Venture:

Tribe Communications, a San Diego-based financial services firm said it formed a joint venture with Montgomery Equity Holdings, a New York-based investment banking firm.

Tribe said it is a full-service investment banking consulting firm with services ranging from financial public relations to mergers and acquisitions, audio Webcasting, and video services. No details of the deal were provided.

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Temecula Valley Hits Record:

Temecula Valley Bank, with four offices and two loan shops, said its net income of $545,993 was a 207 percent increase over the first in 2000, and a record.

Total assets grew 38 percent to $137 million, while total loans increased 60 percent to $105.5 million. Nonperforming loans were $338,000, miniscule to total loans.


Union Donation:

Union Bank of California donated $30,000 to Connectory.com, a San Diego-based Web site aimed at local disadvantaged companies that are providing services and supplies to other local businesses. Companies using the site can display their profiles and conduct basic database searches for new prospects.

Send any finance or banking news to mallen@sdbj.com.

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