Person to Watch:Steven Sugarman
Steven Sugarman was named chief executive of First PacTrust Bancorp Inc. a year ago, a role he took on with the goal of growing and integrating the thrift company into a commercial bank.
He’s brought the Irvine-based bank through a handful of deals since, including buys of Private Bank of California and mortgage specialist Palisades Group. He’s also consolidated its various subsidiaries under a new holding company umbrella, Banc of California Inc.
The company topped $3.7 billion in assets as of the end of September, versus $1.6 billion a year earlier.
Sugarman oversaw the bank’s recent purchase of a $40 million headquarters building in Costa Mesa, which it plans to move into next year.
Banc of California’s stock has grown 8% over the past 12 months to a market value of about $231 million.
Company to Watch: Sabal Financial Group LP
The Business Journal put Sabal Financial Group LP on the watch list last year as the real estate services firm was pushing to make loans, a shift from its original focus on distressed debt.
The Newport Beach-based firm made good on plans to grow its lending programs this year, including expanding its homebuilder services beyond the West. The program is now in 10 states, including Georgia and Florida.
Sabal has more than $6 billion in assets under management, up from about $4 billion a year earlier. It hired more than 60 employees over the year for a total of 160, including 101 in Orange County.
The firm recently rolled out its Joint Venture Equity Finance division, which allows it to make co-investments with other operators of commercial real estate.
Chief Executive Pat Jackson said there will be a “continued focus on lending and … equity investment” going into 2014.
―Jane Yu
Pacific Mercantile Bank Exits Mortgages
Costa Mesa-based Pacific Mercantile Bank has announced it’s exiting the residential mortgage market altogether.
The decision to halt consumer mortgage lending comes a year or so after the bank’s exit from the wholesale mortgage business.
The bank is expected to close its consumer mortgage unit by April and incur about $3.6 million in related costs.
Pacific Mercantile remains one of the largest banks based in Orange County, with about $929 million in total assets as of the end of September.
The exit from the consumer mortgage market is primarily “due to the operating performance of the unit and the bank’s desire to focus on … commercial banking” opportunities, according to a statement by Chief Executive Steven Buster.
The bank has seen sharp drops in quarterly noninterest income, of which mortgage banking is a key component.
Pacific Mercantile is part of Pacific Mercantile Bancorp, whose largest shareholder is Carpenter Community Bancfund in Irvine.
The private equity fund’s chief financial officer, Curt Christianssen, recently joined Pacific Mercantile as its interim finance chief. Christianssen is expected to serve for six months, according to Buster.
―Jane Yu
