L.A.-BASED BANKS MERGE CALIFORNIA NATIONAL, PEOPLE'S TO PAIR UP.Byline: Evan Pondel Staff Writer California National Bank will absorb People's Bank Peo´ple's bank 1. A form of coöperative bank, such as those of Germany; - a term loosely used for various forms of coöperative financial institutions. of California to form one entity with $3.5 billion in assets, creating the second-largest bank based in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , the parent company of both banks announced Monday. The move comes about eight months after Oak Park, Ill.-based FBOP FBOP Flowery Broken Orange Pekoe (tea) FBOP Federal Bureau Of Prisons FBOP First Bank of Oak Park FBOP Fundamental Biology Outreach Program (NASA) Corp. acquired PBOC PBOC People's Bank of China PBOC People's Bank Of California Holdings, People's Bank of California's parent, for an undisclosed amount. California National Bank has about $1 billion in assets, with five branches, while People's Bank of California has approximately 27 branches. FBOP has an asset base of around $8.8 billion. ``The plan was that after acquiring People's Bank of California in April, we would prepare the company for a seamless merger,'' said Gregory Mitchell, chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. and president of California National Bank. The newly formed bank, which will retain the California National Bank name, has branches spanning from Ventura to Orange County and the Palisades Palisades, cliffs along the west bank of the Hudson River, NE N.J. and SE N.Y., extending from N of Jersey City, N.J., to the vicinity of Piermont, N.Y., with a general altitude of from 350 ft to 550 ft (107–168 m). to Pasadena. While People's Bank of California signs are expected to change this weekend, Mitchell, 44, is hopeful the banks' strengths will not get lost in the merger. ``There were cultural changes that needed to occur,'' he said. California National Bank is heavily involved with commercial real estate and People's Bank of California is a savings and loan savings and loan n. a banking and lending institution, chartered either by a state or the Federal government. Savings and loans only make loans secured by real property from deposits, upon which they pay interest slightly higher than that paid by most banks. bank. Together, Mitchell said, the main focus is still commercial real estate, however, consumer banking will now have ample room for growth. ``California National Bank has been sort of a phantom bank, quietly performing instead of promoting, but that will change,'' Mitchell said. For the two Los Angeles-based banks, their integration isn't a rarity in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . Sanwa Bank California and Tokai Bank of California The Bank of California was founded in San Francisco, California on July 5, 1864 by William Chapman Ralston. It was the first commercial bank in the Western United States, the second-richest bank in the nation, and considered instrumental in developing the American Old West. merged over the summer, combining assets of $11.2 billion under the name United California Bank. ``We've seen a lot of larger banks bulking up so they could spread their operating costs over a larger customer base,'' said Jack Kyser, chief economist for the Los Angeles County Economic Development Corporation. FBOP also plans to acquire Bank Plus Corp., the holding company for Los Angeles-based Fidelity Federal Bank. Mitchell said Bank Plus shareholders already approved the deal, which is scheduled to close in December. Fidelity has 28 branches located in Los Angeles and Orange counties. ``It's certainly fertile for banks out there,'' Kyser said. California National Bank and People's Bank of California expect to complete the merger by Nov. 13. Mitchell said upon its completion, he intends to improve marketing efficiencies and customer service across the board. ``Our locations won't change, but we'll have better service in the future,'' he said. People's Bank of California's clients were notified about California National Bank's acquisition via mail. Mitchell said accounts will remain at their present locations. Robert Heskett, president of FBOP, said he looks forward to an increased presence in California, though he faces a competitive market. With Wells Fargo and Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. having a hefty market share in California, California National Bank must target specific demographics. ``For banks out here, it depends on where people are economically,'' Kyser said. ``Some banks get to a point where they are too big, while smaller banks service a specific community.'' |
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