San Joaquin Bank reassures customers ahead of deadline
| Wednesday, Oct 14 2009 07:16 PM
Last Updated Wednesday, Oct 14 2009 07:30 PM
Loading Stories
Advertisement
Images:
Felix Adamo / The Californian Bart Hill, president and CEO of San Joaquin Bank, in April 2009.
On the eve of an important deadline, San Joaquin Bank's holding company issued a statement late Wednesday afternoon that officials said was intended to restore confidence among bank customers and employees.
The news release by President and CEO Bart Hill states that the bank is making progress toward its near- and long-term goals. The release specifically reassures checking account holders that their deposits are insured "regardless of the amount."
Hill's statement contained no new information. He said it was issued, in part, to quell negative rumors and settle anxieties in advance of a deadline that has prompted an undisclosed number of customers to close their accounts with the bank.
Under the terms of an agreement with federal and state regulators, San Joaquin has until Thursday to raise $27 million in new capital to address liquidity concerns.
Wednesday's statement refers to recent changes to the company's board of directors, including a new chairman, the retirement of founder and former Chairman Bruce Maclin, and the creation of a Corporate Governance and Nominating Committee composed of non-banking executives. Incoming Chairman Rogers Brandon said the changes were designed to demonstrate that investors have a voice in the company.
Brandon said the company would be making another official statement Thursday, which he declined to discuss. He said Hill's new release "expresses sentiments of the entire board."
Bank officials say they have been working with at least two groups of investors that at least tentatively offered to contribute money that would allow the bank to increase its capital to a level that would satisfy regulators.
Here are excerpts from Hill's statement:
"The newly restructured board of directors and senior management team of San Joaquin Bank are continuing to make solid progress on our strategic plan to increase capital, stabilize asset quality, further improve liquidity, and position the Bank for long-term growth and success. As part of these efforts, we have been working in close cooperation with our regulators on a daily basis to help ensure that the Bank remains safe and sound, both today and tomorrow. Importantly, we have successfully achieved a number of critical milestones to meet our most immediate regulatory goals, and we will continue to keep our regulators apprised of this important progress.
"As we work to address these near-term challenges, I want to reinforce that our customers' deposits at San Joaquin Bank remain safe and secure through unlimited FDIC insurance coverage for all noninterest checking accounts and NOW accounts, regardless of the amount. ...
"Looking ahead, we are continuing to make changes throughout our operations that we anticipate will put the Bank on a path to profitability in 2010. In addition to expanding our special assets department and revamping our credit administration team, we also plan to add new directors and strengthen our senior management team ..."
