The List of OC-Based Banks Lost Last Year’s Top Two, but Gained Four Newcomers; First Fidelity No. 1
You lose a few, you gain a few. That’s the way it goes with banks based in Orange County, a fertile ground for local startups that grow for a few years and then are bought by larger, out-of-county institutions.
And that’s how it was in the 12 months ended June 30, only maybe more so, according to the Business Journal’s list of OC-based banks.
Last year’s Nos. 1 and 2 are gone, gobbled by bigger regional fish. But joining the list at the bottom are four, count ’em, four startups.
This year’s list has 17 OC-based banks, compared with 13 in last year’s rankings.
CommerceWest Bank, California First National Bank and Orange County Community Bank, all started their operations during the year. Commercial Capital was formed in a local group’s acquisition of a Riverside institution in 2000, and it moved its headquarters here in December.
Commercial Capital was started through the creation of a mortgage company called FIP Mortgage in March of 1998 and in January 2000, the company acquired Mission Savings & Loan Association, a bank based in Riverside County. Through a share exchange that was completed in December 2000, Mission, which was subsequently renamed Commercial Capital became a subsidiary of Commercial Capital Bancorp. FIP Mortgage also became a subsidiary of Commercial Capital.
“We wanted to have balance sheet capabilities and a recurring income stream,” said Stephen Gordon, chairman and CEO of Irvine-based Commercial Capital Bancorp. “We wanted to offer our clients the typical suite of products ranging from business banking to cash management services as well as all of the depository related services,” said Gordon.
The bank has one branch in Orange County and one in Riverside County. Its mortgage company has eight offices throughout California.
Commercial Capital has grown its assets by more than 400% since it acquired Mission Savings.
“When we bought the bank, it was only $40 million in total assets,” said Gordon. “The bank today has over $200 million in total assets.”
California First National Bank started its operations in May. The firm has quickly ramped up its operations and had $20 million in assets as of June 16.
This year, the list has a new No. 1. Tustin-based First Fidelity Investment & Loan replaced Eldorado Bank, which was acquired by California Bank & Trust, an out-of-county bank.
Fidelity started operations in 1967. Chartered as an industrial bank, and with two branches in Orange County, it previously was included in the Business Journal’s list of savings and loans. But because its business model has more similarity to that of a commercial bank, Fidelity was moved to the bank list.
This year, the bank’s assets grew 7% from last year’s level to $599 million and it employed 61 people in Orange County, up from 57 last year.
“This has been a good year for us. We had good origination, particularly in the later part of the year,” said Boyd Warner, senior vice president at First Fidelity.
“Our profits have been very good and our loan quality is also very good,” said Charles Thomas, the bank’s chief executive.
In total, the 17 banks saw their companywide assets grow by 33% to $2.1 billion. While the 33% growth in assets was higher than the 23% growth in assets posted by the 13 banks in last year’s list, the total assets of this year’s 17 are lower than the total assets of the 13 banks in last year’s list. That’s because the departing Eldorado took $1 billion in assets with it, and First Bank & Trust, which was ranked No. 2 last year with assets of $761 million, was acquired by First Banks America Inc. in November and moved its headquarters to San Francisco.
Among the banks that improved their rankings due to the departure of last year’s top two was BYL Bank Group, now ranked No. 2, up a spot from last year. But BYL itself is already gone: its acquisition by the erstwhile First Bank & Trust will be final on Oct. 31.Bank of Orange County jumped three spots to take No. 3 position in the list. The bank grew its assets 61%, and was the fourth fastest growing bank in the county in terms of assets.
Five other banks rose on the list because of growth in their assets, while three banks remained at the same spot. Four banks dropped in their ranking as their asset growth could not match torrid growth rates of Commercial Capital and South County Bank. Commercial Capital had a 203% growth in assets, while South County Bank had a 186% growth. PriVest Bank, Sunwest Bank, South Coast Commercial Bank and Harbor National Bank fell in their ranking. n
