Orange County-based commercial banks continued strong year-over-year growth as they increased assets 39% to about $33.5 billion for the year ended June 30.
That’s slightly faster than the nearly 38% asset growth notched in the same period a year earlier.
Banks’ assets growth is tied mainly to their loan portfolios; cash, real estate and intangible assets complete the category.
This week’s Business Journal list ranks the 20 banks in OC by those assets. It also provides net income, the number of local employees, and indicators of the institutions’ health for the first six months of the year, though that information doesn’t affect the rankings.
The banks reported a combined net income of $138 million, up 31% year-over-year, and increased hires by 12% to 2,968 employees at 55 branches in Orange County.
Seven of the banks recorded single-digit increases in assets, and the other 13 banks notched double-digit increases.
The top five banks—all of them are in Irvine—remained unchanged.
• Banc of California is No. 1 again with about $10.2 billion in assets, up 58%. The bank reported net income of about $54 million for the first six months of the year, up 57%. It employs 945, up 3.5%, at 13 local branches.
• Opus Bank is No. 2 with $7.5 billion, up 28%. The bank’s net income increased 17% to $33.4 million. It employs 375, up 15%, at nine OC branches.
• Pacific Premier Bank is No. 3 with about $3.6 billion in assets, up 37%. It took in $21.4 in net income, up 88%. The bank increased staff by 29%, ending the period with 230 employees at five branches.
• First Foundation is No. 4 with $3.5 billion in assets, up 87%. The bank increased net income about 24% to $7.9 million. It employs 215, up 51%, at its lone branch here.
• California Republic Bank is No. 5 at $1.8 billion, up 24%. Its net income dropped 44% to $3.8 million.
It may be the last year the bank will be on the list after completing a $330 merger with Mechanics Bank in Walnut Creek in October. The combined entity is expected of have about $5.4 billion in assets.
California Republic President John DeCero was named chief executive of Mechanics Bank and plans to travel between northern and southern California in his new role.
The bank employed 295 at three local branches prior to the merger.
Swings
Two banks that are part of the Carpenter & Company business portfolio have switched rankings. Carpenter and Company is an adviser to financial institutions and owns and operates a few banks in OC.
• Plaza Bank in Irvine is No. 6 with a little more than $1.1 billion in assets, up 6.6%. The bank swung to a $5.2 million net profit after posting a $109,000 net loss a year earlier.
The bank acquired bank holding company Manhattan Bancorp last year. The subsidiary of the Bank of Manhattan had $481 million in assets and primarily served businesses and customers in Los Angeles County.
“The integration of the cultures of the two banks has been completed and the financial results are starting to show,” said Gene Galloway, president and chief executive of Plaza Bank, in a news release.
Plaza Bank hired four during the period, leaving it with 69 at its OC branch.
• Pacific Mercantile Bank in Costa Mesa is No. 7 with a little under $1.1 billion in assets, up 4%. The bank had a net loss of $4 million for the first half of the year and a $1 million profit a year earlier.
The bank named Thomas Vertin chief executive on Jan. 1 and has begun to clear its balance sheet of bad loans. It charged off about $8 million in June related to three loans that were unlikely to be repaid.
The bank’s new credit team worked with independent analysts to review all 679 bad loans and decided to make policy changes to increase credit administration, Vertin said in a news release.
The bank employs 134, up 11%, at four local branches.
Newcomer
One new bank joined the list this year.
California Business Bank in Irvine is No. 18 with $88.7 million in assets, up 17%. It wasn’t on last year’s list because it moved to OC from Los Angeles in September 2015.
Its net loss increased 35% to about $1.8 million for the first half of the year. The Business Journal estimates the bank employs 19 at its Orange County branch.
