Magazine article American Banker

An L.A. Bank, Back from the Dead, in Expansion Mode

Magazine article American Banker

An L.A. Bank, Back from the Dead, in Expansion Mode

Article excerpt

Peninsula National Bank, the reincarnated version of a Los Angeles bank that failed last year, is set to triple in size by buying a troubled Orange County bank.

The deal will allow Don Griffith, a former chief financial officer of First Interstate Bancorp, and his cadre of bankers who are Peninsula Bank principals to build a sizable presence as a community bank in West Los Angeles.

Designed as Rescue MOve

Ventura County National Bancorp inked a deal earlier this week to sell its La Palma-based subsidiary, Frontier Bank, to Peninsula for $7 million. The price will probably be knocked down because the deal is structured so that Peninsula will be covered for any losses on certain assets.

Ventura County National Bancorp's main asset, the $240 million-asset Ventura County National Bank in Oxnard, is under orders to raise capital. Richard S. Cupp, chief executive of Ventura National, hopes that by selling Frontier, the sister bank will be saved.

"This is part of our strategy designed to deal with the regulatory pressures on us," Mr. Cupp said. "We need to build our capital base and we want to put all of our resources into Ventura County National Bank."

Ventura County bought Frontier Bank in 1989, but the purchase was never deemed successful Mr. Cupp was hired last year. to bring the company out of a decline sparked by the Frontier Bank purchase.

Other Discussions

Mr. Cupp said the Frontier deal was in the letter of intent stage, but he was confident that it would get done by the end of the year. …

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