From Volunteer CU Directors ToMillionaire Stakeholders
CHULA VISTA, Calif. - (06/09/05) -- If the 15 converted credit unions totest the public markets have experienced mixed results, at leastone has been an undisputed success, from a financial standpoint.Just three years after its initial public offering, First PacTrustBancorp--known until January 2000 as Pacific Trust FCU--has morethan doubled in size to $700 million and its stock has appreciatedmore than 150%, earning top managers and directors of the ex-creditunion millions of dollars in windfall profits. Directors whoengineered the credit union switch to bank have more than doubledtheir money, so that long-time chairman of the board Alvin Majorshas accumulated $1.6 million worth of stock in the converted creditunion, while former volunteer credit union directors Francis Burke,Kenneth Scholz, Donald Purdy, and Donald Whitacre, have allaccumulated between $1.4 million and $1.6 million worth of stock inthe credit union-turned-bank, according to documents filed with theSecurities and Exchange Commission. But perhaps the most wealthaccumulated from the conversion of a credit union has accrued toFirst PacTrust's president and CEO, Hans Ganz. Since the 2002 IPO,Ganz has accumulated either shares or the rights to shares to bevested over the next few years, that includes restricted stockgrants and options, worth $3.9 million. During that time, 11insiders, including Ganz and five other top managers and the fivenon-executive directors, have accumulated almost $18 million worthof stock in the credit union-convert.