Saigon National Bank plans to open its doors in the heart of Little Saigon on Wednesday, the bank’s top official said.
The Westminster-based bank raised slightly more than $14 million in startup funds by the time its offering to investors closed on Nov. 1, said John J. Kennedy, chief executive of Saigon National. The commercial bank plans to apply to the Nasdaq stock exchange for a ticker symbol soon.
“It’s a milestone for the Vietnamese economic community,” Kennedy said. “It’s the first national bank charter issued to Vietnamese bank organizers.”
The bank is in the Brookhurst Town Center near the intersection of Brookhurst and McFadden avenues.
Little Saigon, whose main artery includes Brookhurst, runs through parts of Westminster and Garden Grove. Home to more than 300,000 people, the area is the largest Vietnamese ethnic community outside Vietnam.
In late May, Saigon National rival First Vietnamese American Bank opened its doors. It operates under a state charter, and recently reported financial data on its first full quarter as a bank.
Traditionally, startup banks take about three years to reach profitability. First Vietnamese reported a loss of $1.2 million in its quarter ended Sept. 30. Assets were about $15.6 million, according to data reported to regulators.
First Vietnamese is a few blocks away from Saigon National at the corner of Westminster and Bolsa avenues.
Meanwhile, more than 400 shareholders paid $10 a share for about 1.4 million shares in the Saigon National stock offering, Kennedy said. The bank employs about 12 workers, including Chief Financial Officer Roy Painter and Chief Credit Officer Michael H. Mullarky.
Saigon National is targeting Vietnamese-Americans in Westminster and Garden Grove as well as Hispanic businesses in western Santa Ana, according to Kennedy.
The last major ethnic bank in the area to target the Vietnamese community failed in 1991. Delta Savings Bank was taken over by federal regulators and the thrift’s $3.5 million in deposits were bought by East West Bancorp Inc. of San Marino, which focuses on Chinese and other Asian clients.
