The Orange County banking sector is getting a new player that has a habit of buying failed thrifts. Ventura-based Affinity Bank just bought the Irvine branch of Tustin-based FirstPlus Bank, a subsidiary of Dallas-based First Plus Financial Group Inc., which filed for Chapter 11 in 1999. The acquisition includes $110 million in deposits at the branch. Affinity will be taking over the branch operations and its customers.
Affinity is not acquiring the branch’s loans.
“We are just buying the deposits and we will continue to serve the local depositors,” said Michael R. McGuire, Affinity’s president.
FirstPlus Bank officials could not be reached for comment. FirstPlus Bank has $174 million in deposits and three other branches,one in San Clemente and two near Sacramento.
Affinity is making the foray into OC because it already has customers here.
“We’ve been lending in OC for several years, adding a retail deposit branch is a natural adjunct,” McGuire said. The bank has a loan production office in Irvine, out of which it makes loans for commercial real estate construction and for multi-family projects.
The acquisition allows Affinity to take more deposits and gives it a stronger presence in the county. Affinity will offer checking accounts and debit cards and will put in an ATM system at the branch, services that FirstPlus did not offer. FirstPlus is a thrift that primarily offers deposit products such as certificates of deposits and money market accounts. Affinity is also in the process of installing an online banking system that McGuire said should be ready by the second quarter of the year.
Affinity got its start in banking when its parent, the Affinity Group Inc., acquired the assets of the failed San Francisco Savings & Loan in 1996. McGuire was hired to run the bank and he moved its headquarters to Ventura, where the bank had a branch and where McGuire had his home.
The Affinity Group bought the institution to provide banking services to the customers of its other subsidiaries, which include the Good Sam Club, an organization for recreational vehicle owners. It also sells RV accessories, publishes RV magazines and offers RV travel services. It gets about 40% of its deposits from the RV club. The rest of the deposits come from the communities surrounding its branches. It grows that by telephone sales, Good Sam membership lists and advertising in the Affinity Group magazines. The bank also offers telephone banking services, which McGuire said appeals to the club members.
Affinity also acquired the deposits of Woodland Hills-based Pacific Thrift & Loan, a failed institution, at the end of 1999.
The thrift started buying retail sites so its customers have a physical place to bank, as well.
“We are looking to expand direct retail banking,” McGuire said. n
