First American Closing In:
Offices Limited, Deals OK
First American Financial Corp. (NYSE: FAF) offices are “closed to the public due to current circumstances,” it said in a statement.
The Santa Ana financial services and title insurance provider said it is still facilitating transactions and, by appointment, meeting clients’ day-to-day needs despite the closures.
Arrangements are stringent, especially in event planning: only essential parties are permitted, new pens for each signatory, sanitizing tables and chairs afterward.
It hasn’t laid off or furloughed any of its nearly 2,000 employees because of the coronavirus; its shares have fallen 40% since mid-February to about $40 and a $4.6 billion market cap.
The company has also made efforts to calm concerns and keep active in the community.
Its chief economist, Mark Fleming, cited “distinct differences” between current calamities and the 2008 real estate crisis, in the company’s Real House Price Index for January.
“Many still bear scars from the Great Recession,” he wrote, “and may expect the housing market to follow a similar trajectory in response to the coronavirus outbreak.”
But “while housing led the recession in 2008,” this time it may be poised to bring us out.”
He suggested housing isn’t overvalued or overbuilt and noted equity is at historical highs while household debt-to-income ratios are at a four-decade low.
First American is giving to hunger charity Feeding America and encouraging employees to follow suit, including food boxes and funding for food banks and families.
—Katie Murar
Biggest Bank Bumps ATM Limits; Opus Buy on Track
Pacific Premier Bancorp Inc. (Nasdaq: PPBI) Chief Executive Steve Gardner says the Irvine-based bank’s highest priority is people’s safety. It has:
• closed or reset hours at branches and shut down on Saturdays;
• more than half its employees working from home;
• issued a tip sheet for banking at home, including how to make many or large deposits;
• boosted debit card daily withdrawal limits to give customers greater access to their cash;
• seen its shares fall 40% since mid-February, to $17 and a $1 billion market cap.
The share decline was in line with the benchmark KBW Nasdaq Bank Index and to those at rivals First Foundation Inc. (Nasdaq: FFWM) and Pacific Mercantile Bancorp (Nasdaq: PMBC). Banc of California Inc. (NYSE: BANC) is down by more than half since the market decline began.
“We’ve modified our branch hours and are asking visitors to follow social distancing guidelines,” Gardner told the Business Journal, adding the bank is encouraging clients to use ATM, online, mobile and telephone banking.
One wrinkle: Pacific Premier in February said it would acquire crosstown rival Opus Bank (Nasdaq: OPB); the linkup would create a bank with $20 billion in assets. The bank said April 3, that some regulators approved the merger and it still anticipates a second-quarter closing.
Pacific Premier had about $327 million in cash or cash equivalents as of Dec. 31.
It reports first quarter results April 28.
—Peter J. Brennan
