A new leader tops the Business Journal’s annual ranking of the biggest banks with headquarters in Orange County.
Pacific Premier Bancorp (Nasdaq: PPBI) took the top spot by boosting its assets 44% to $11.8 billion for the 12 months ended June 30.
The new title is the culmination of a 19-year run for Chief Executive Steve Gardner, who took over the bank in 2000 when it was near bankruptcy and based in Riverside.
In 2010, the bank reported $826.8 million in assets. Since then, its growth has been aided by organic growth and the acquisitions of 10 banks, the biggest of which was Grandpoint Capital that added another $3.6 billion in assets, helping it grab this year’s title.
“Our exceptional employees are committed to delivering the highest level of service and professionalism in the industry, and because of this our clients regularly refer fellow business owners and consumers to the bank,” Gardner told the Business journal.
“As we have grown, word has spread that Pacific Premier is the bank of choice for businesses,” he said, adding, “Orange County is a dynamic marketplace. We expect to grow throughout the area over the coming years.”
Santa Ana’s Banc of California fell to No. 2 at $9.4 billion in assets as Chief Executive Jared Wolff purposely shed its less profitable areas (see separate story, page 1).
The Business Journal’s annual list of banks highlights 18 banks whose assets climbed to $42.3 billion for the 12 months ended June 30, a 12% jump from the same period a year earlier.
The list also reflects an industry trend of fewer local banks; a decade ago, 25 banks made the Business Journal’s list. Only seven on that list appear on this year’s list.
One thing is for sure—the biggest are growing bigger. The six largest banks on this year’s list all top the assets of 2009’s largest, Costa Mesa’s Pacific Mercantile Bank, which in that year had $1.1 billion in assets. Pacific Mercantile is now No. 5, with $1.4 billion in assets, a 4.5% climb from a year ago.
The local banks slightly increased their OC employee count by 1% to 2,327.
The largest jump came at Irvine-based Commercial Bank of California, where its employee count climbed 60% to 101. The employee count was temporarily low last year when it was undergoing a transition in leadership.
Ash Patel, who took the CEO position in 2013, has grown Commercial Bank of California’s assets from $200 million when he took over in 2013 to $977.8 million as a of June 30; the last annual figure was an 8.3% increase from the prior year.
Other Notable Banking News
• Irvine’s Nano Banc was the biggest grower; it more than tripled its assets to $737.1 million.
“Nano Banc was the fastest organic growing bank in the country last year,” President Mark Troncale said in an email.
The bank’s website said it doesn’t invest in “the more common brick and mortar approach” and that its technology permits it to deliver products “without the steep price tag.”
Troncale, along with Chief Executive Mark Rebal and Chief Credit Officer Anthony Gressak, founded the bank last year, raising $71.7 million in equity capital to acquire commercial banks in Southern California.
Rebal was co-founder of California Republic Bank, where Troncale worked as a senior vice president in charge of treasury and cash management, and Gressak was also a SVP responsible for nearly 50% of the bank’s portfolio.
• First Foundation Inc. (Nasdaq: FFWM) ranked No. 4 with $6.3 billion in assets, a 5.1% rise from the year prior.
Chief Executive Scott Kavanaugh said the increase would have been much higher except that it sold off about $1.1 billion in assets.
“We would’ve grown substantially more if we had not done two substantial securitizations,” he said.
• No. 12 Partners Bank of California, based in Mission Viejo, hired Chris Walsh, a banker well known in Orange County business circles, as chief executive about 15 months ago.
Walsh attributed the growth to opening an office in Beverly Hills and hiring two seasoned bankers.
The bank, which specializes in doctors and healthcare professionals, is aiming for $360 million in assets in 2020 and more than $400 million in 2021. It may also open a new office. The bank does a lot of business with Mission Hospital and wants to expand to professionals in Hoag and Saddleback.
“We want to grow the business bank with relatively safe lending,” said Walsh, who was previously the top local official for Blue Gate Bank, which was sold a year ago.
• Another fast grower was Santa Ana-based Infinity Bank, which climbed 145% to $106.1 million. It opened early last year with Bala Balkrishna, who was previously chief executive of Commercial Bank of California. He is also on the bank’s board along with Glenn Stearns, founder of Stearns Lending LLC; and Cary Bren, chief executive of California Pacific Homes.
