One of the largest community banking companies in southern California is consolidating banks and switching to a state charter to save costs.
The $4.6 billion-asset First Community Bancorp in Rancho Santa Fe said it plans to consolidate its First National Bank in San Diego and its Pacific Western National Bank in Los Angeles. The merged bank would be named Pacific Western Bank, but its headquarters would be in downtown San Diego - where the parent company would move its headquarters.
Matthew P. Wagner, First Community's president and chief executive, said in an interview Tuesday that it is merging its banks mainly so that customers throughout its markets can use all its branches.
After it acquires the $897 million-asset Community Bancorp Inc. in Escondido, First Community would have 71 branches in Los Angeles, Riverside, San Bernardino, Orange, and San Diego counties. (It also has a branch in northern California.)
First Community would merge its two banks next quarter, immediately after the Community Bancorp deal closes. The seller's Community National Bank would be folded into Pacific Western Bank.
In addition, Pacific Western National Bank has filed an application with the California Department of Financial Institutions to convert from a national charter to a state charter, because the regulatory costs would be "significantly cheaper," Mr. Wagner said. The bank also has filed a notice with the Federal Reserve Board to withdraw its membership.
"We have a national charter more by accident than by design," as one of the first banks it bought in 1999, Rancho Santa Fe National Bank, had a national charter, he said. "But with this consolidation, we thought that this was also a good time to cut regulatory expenses."
After the consolidation, Michael J. Perdue, the president and CEO of Community Bancorp, would become the president of both First Community and Pacific Western. Mr. Wagner would remain the parent company's CEO and would become the chairman and CEO of Pacific Western. Robert M. Borgman, the president and CEO of First National Bank, would become a director at Pacific Western.
