Executive Summary Once again, the Valley banking industry is its typical topsy-turvy self with this year’s list of top banks bearing little resemblance to last year’s. For starters, last year’s No. 1 bank (in terms of assets), Fidelity Federal Bank, is nowhere to be found, having been sold early in the year to FBOP Corp. of Oak Park, Ill., a closely held parent company of California National Bank. That move alone sent the previous No. 2 Community Bank to the top of the rankings. But that’s not the only change. The next most significant changes all involve Union Bank of California’s efforts to buy itself into some of the hottest markets in the San Fernando Valley. Several months ago, Union Bank acquired First Western Bank of Simi Valley and just recently its acquisition of fast-growing Valencia Bank & Trust was announced. And Bank of Granada Hills, while no longer a name on the list, is still there – just in another form. After its own acquisition of another bank, Granada Hills changed its name to First State Bank of California. Additions to the list this year include Premier America Credit Union of Chatsworth, U.S. Bank, First Commerce Bank and Matadors Community Credit Union. The Pacesetter COMMUNITY BANK Community Bank started out in 1945 in response to a refrain that sounds familiar today: Charlie Cook and his brother Howard were frustrated by the bigger banks that seemed to have little time to spare for small, growing companies – the kinds of companies that, even when the two brothers moved to Southern California in the 1920s, were providing the foundation for a regional economy. Hoping to focus on the needs of smaller companies, Charlie formed what was the first new bank in California since the stock market crash of 1929. Reportedly, the state banking office even had trouble finding application forms for a bank charter. What was then the Huntington Park Bank started out with an initial investment of $125,000 and ended its first year with $869,000 in assets. Today, of course, assets for Community Bank, which concentrates on the San Fernando Valley, Orange County and Inland Empire, are closer to $1.2 billion. In the second quarter of 2002, Community Bank reported pre-tax income of $6.9 million. Net income was $4.0 million as compared to $3.6 million for the same quarter last year, representing a 10.3-percent increase. Return on average equity, prior to mark-to-market adjustments, and return on average assets for the second quarter of 2002 were 14.2 percent and 1.2 percent, respectively, as compared to 14.8 percent and 1.2 percent, respectively, for the second quarter 2001. In May, V. Charles Jackson was appointed president, CEO and member of the Board of Directors.
