Bank's closure leaves void
SAN JOAQUIN: Bank provided early leadership for CASA
| Saturday, Oct 17 2009 09:14 PM
Last Updated Monday, Oct 19 2009 10:30 AM
State regulators shut down San Joaquin Bank on Friday, ending a year-long effort to recapitalize the Bakersfield-based institution. On Thursday the bank missed a deadline to raise $27 million to satisfy liquidity concerns. It was the 99th bank in the nation to be closed by regulators this year.
Ontario-based Citizens Business Bank purchased the bank's deposits and essentially all of its assets. It plans to reopen San Joaquin's five branches Monday under the Citizens name. The transition is expected to be seamless for customers.
Account holders' deposits are insured by the Federal Deposit Insurance Corp. More information is available from the FDIC by calling (800) 423-6395, or by visiting its website, www.fdic.gov.
Read more about San Joaquin Bank at bakersfield.com.
Images
Henry A. Barrios / The Californian Members of the news media gather outside the San Joaquin Bank 17th Street headquarters in downtown Bakersfield after regulators shut down the bank Oct. 16. The bank reopened Oct.19 as Citizens Business Bank.
Casey Christie / The Californian Workers with Encore Image put up the new Citizens Business Bank sign over the old, San Joaquin Bank sign, Saturday, on 17th and L Streets.
At a time of need, the Alliance Against Family Violence and Sexual Assault turned to San Joaquin Bank.
The Bakersfield nonprofit was experiencing a cash flow problem caused by a state budget hold-up several years ago. Not only did the bank quickly come through with a loan to help cover the organization's payroll, but it did so without charging fees or insisting on an assessment of collateral.
"They really were wonderful," former board member Mic Hall said. "In our dealings with them, (bank executives) were very willing to come in and make a loan based on the reputation of the alliance and the service we provide in the community, as opposed to a financial relationship that would be a big profit for San Joaquin Bank."
Now that support is gone.
Pangs of loss ripple across a community when a local institution as prominent as San Joaquin Bank closes, as happened Friday when state regulators shut the Bakersfield-based franchise and arranged its sale to Citizens Business Bank.
That the closure is felt strongly by the business community along with the bank's employees and shareholders goes without saying. Less obvious, perhaps, is the void it leaves among local charitable and arts organizations that over the years have benefited from San Joaquin's largess.
Banks are expected to contribute to local charities. Even so, leaders of some Bakersfield nonprofits say San Joaquin's generosity extended beyond expectations, and that its particular choices of where to donate, volunteer and otherwise participate in the community's well-being reflected a unique reading of the area's needs and personality.
At Junior Achievement of Bakersfield Inc., San Joaquin's support took many forms. Bank employees solicited donations from their family and friends. The bank itself made grants to the organization's financial literacy and entrepreneurship programs. Bank workers volunteered for classroom training events.
"They've been a wonderful supporter and we've really enjoyed working with them," the organization's local district manager, Kathleen McNeil, said shortly before the bank's closure Friday.
At Court Appointed Special Advocates (CASA) of Kern County, the bank provided key leadership at a formative time, said the organization's executive director, Colleen McGauley.
In addition to the bank's direct financial support, one of San Joaquin's officers served on CASA's board of directors early in the organization's history.
Contributions of not just money but time on the part of bank personnel "are one of the reasons why CASA is successful today," McGauley said.
The bank holding company's chairman, Rogers Brandon, said all banks help their communities the way San Joaquin did. One possible difference, he said, is that its employees contributed leadership, time and services outside of work hours to worthy causes.
In addition, he said, the bank spearheaded initiatives to finance important projects such as the construction of the building that houses the Greater Bakersfield Chamber of Commerce.
"I think the important thing that will be missed is the dedication ... that our staff and employees of San Joaquin Bank gave back to the community," he said.
That kind of commitment was evident at the Bakersfield Museum of Art, museum executive director and CEO Bernie Herman said.
The bank regularly contributed $5,000 a year or more to support major exhibits, Herman said. San Joaquin also helped out by providing a loan that allowed the museum to expand several years ago.
It gave money to other arts-related organizations around town as well, including the Bakersfield Symphony Orchestra. No other bank supported the arts to such a degree, Herman said.
"I just see their name on so many different community events," he said. "We're losing a friend."
