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Tuesday, Jul 23, 2024

San Diego Private Bank Posts Solid Earnings Growth for Q2

San Diego Private Bank’s second quarter net income more than doubled from a year earlier at $594,000, while its total assets grew 8 percent to $339.5 million.

Net loans increased 6.8 percent to $262.4 million, and deposits stayed flat at $278.4 million.

All in all, it was a solid quarter of growth that resulted in improved earnings, CEO Maria Kunac said.

Both credit quality and capital ratios remained high, she said.

Only one loan, at $966,000, isn’t performing, resulting in a ratio of problem assets to total assets of only 0.28 percent, down from 0.41 percent in the like quarter of 2013. Anything below 1 percent is kicking it.

The bank’s total risk-based capital stood at 17.1 percent as of June 30, or nearly double the minimum 10 percent to be classified as well-capitalized.

Kunac cites that SDPB retained a five-star rating from Bauer Financial and a super premier performer rating from The Findley Reports as evidence of the bank’s health.

In June, SDPB moved its Little India office to downtown San Diego at 550 W. C St, a site that the bank said should give it greater visibility and more cachet with the type of borrowers it’s trying to attract — wealthier clients, professionals and businesses of all sizes.

• • •

BofI Holding completes $50 million stock offering: BofI Holding Inc., parent of BofI Federal Bank, completed a $50 million at-the-market common stock offering and began another $50 million such offering, the holding company announced.

An at-the-market offering refers to a public company selling shares incrementally at market-driven prices rather than as an underwritten, fixed number of shares at a set price.

CEO Greg Garrabrants said the first $50 million was used to support the bank’s capital requirements and organic loan and deposit growth over the last 16 months. The second offering can provide the same funding to support future growth, he said.

• • •

CIT Bank enters market: The proposed acquisition of OneWest Bank by CIT Group isn’t exactly sending local community bankers scurrying for cover.

The size of this transaction — the combined bank will be about $67 billion in assets — is so far beyond the size of any community lender, it really won’t affect them, one local banker said.

Alan Lane, chief executive at Silvergate Bank, said that because most smaller business customers prefer dealing with decision-makers personally, the sale shouldn’t impact most smaller banks here.

“In general, big banks are typically more consumer focused. On the business lending side, they’re focused on larger companies that are too big [for community banks] to bank,” Lane said.

OneWest, based in Pasadena and with $23 billion in assets and 73 branches, was founded in 2009 from the ashes of failed IndyMac Bank by a group of private equity financiers including George Soros, John Paulson and Michael Dell. The business continued as a savings and loan but switched to a commercial bank charter earlier this year.

In San Diego, OneWest has three offices: Escondido, University City and Rancho Santa Fe. Lane said his bank never competed with OneWest, but is quite familiar with CIT, a big equipment leasing and middle-market lender. Among the lines it operated was a factor, providing financing to smaller companies by buying their receivables.

• • •

Bank pool saves threatened bank: When 50-year-old Los Angeles-based Pan American Bank teetered on the brink of dissolving, a group of 16 banks stepped up to pledge $6.3 million in new capital to keep the doors open.

Among the banks involved in the recapitalization are several with local ties, including Grandpoint Bank, which acquired both Regents and California Community Banks: Banc of California, formerly called Pacific Trust Bank and based in Chula Vista; Western Alliance Bank, which owns San Diego-based Torrey Pines Bank; and Pacific Western Bank, which was formerly based here until the parent, PacWest Bancorp, moved to Los Angeles.

“This transaction was unique in many ways and is a significant milestone for the banking industry,” said John Eggemeyer, PacWest’s chairman of the board and Rancho Santa Fe resident. “In my 30-year career in the banking industry, I have never been more proud to be a part of a transaction because this one is going to have such an important impact in this community.”

While Pan American has but one branch and only $41 million in assets, it’s been an active lender to many Latino small businesses and individuals, and was designated as a community development financial institution. That means it provides services and products to a specific market that is underserved by traditional banks.

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


In last week’s Finance column, some dollar numbers for the San Diego district’s SBA loans through June 30 were incorrect. The total 7(a) loans made in the district were $186 million, with an average of $395,000. The total 504 loans was $51.6 million with an average of $697,000.


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