Banc of California

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Banc of California, Inc.
Public
Traded asNYSEBANC
S&P 600 Component
IndustryFinancial services
Founded1941 (as Rohr Employees Federal Credit Union)
HeadquartersSanta Ana, California
Key people
Jared Wolff, President and Chief Executive Officer[1]
Total assets$10+ billion
Websitebancofcal.com

Banc of California is a bank serving the state of California with 30+ banking branches in Southern California.[2] The bank is headquartered in Santa Ana, California.[3]

History[edit]

The Banc of California was founded in 1941 as the Rohr Employees Federal Credit Union, serving employees of the Rohr Aircraft plant in Chula Vista, California.[4][5][6] The credit union was renamed to the Pacific Trust Federal Credit Union in 1995, which itself was renamed to the Pacific Trust Bank in 2000, becoming a mutually owned federal savings bank.[4][6]

The Pacific Trust Bank was made into a subsidiary of First PacTrust Bancorp Inc. in 2002. In 2013, the company's two banking subsidiaries, Pacific Trust Bank and The Private Bank of California, were merged to form the Banc of California. The bank also hired former Los Angeles mayor Antonio Villaraigosa as a strategic advisor.[7]

In 2014, Banc of California bought 20 bank branches in Southern California from Popular, Inc., a Puerto Rico-based bank, for $5.4 million. The move doubled the number of branches the bank owned and brought its assets to $5 billion.[8]

On January 23, 2017, CEO Steven Sugarman resigned amid an investigation by the Securities Exchange Commission (SEC) over the bank's alleged links to a convicted fraudster.[9] An internal investigation by the bank found no legal issues,[10] but attracted criticism from the CalSTRS over its poor oversight of deals signed that benefited Sugarman and his associates.[11] After Sugarman's resignation, the bank shifted its focus from growth to profitability, including laying off 139 workers at its corporate offices.[12]

As of September 2017, financial analysts had cut Banc of California's earnings estimates per share, despite the new strategy's focus on profitability.[13][unreliable source?]

Sponsorships[edit]

Since 2014, the bank has been the official bank of the USC Trojans, the athletic program of the University of Southern California.[14]

In 2016, the Banc of California announced a partnership with Los Angeles FC, an upcoming Major League Soccer franchise, and a 15-year, $100 million deal with the club for the naming rights to their stadium Banc of California Stadium in Los Angeles, scheduled to open in 2018.[15][16] The deal was described as "a little out of the mold for a bank of our size" by then-CEO Steven Sugarman, with other observers noting that the bank was not well known nationally.[15] The company paid $20 million for early termination of the naming rights deal in 2020, citing a shift in focus.[17]

References[edit]

  1. ^ "Banc of California Names Jared Wolff as President and Chief Executive Officer" (Press release). Banc of California. March 5, 2019. Retrieved March 6, 2019 – via SNL Financial.
  2. ^ "Banc of California Locations". Banc of California. Retrieved May 2, 2018.
  3. ^ "What it Means to be California's Bank". LA Progressive. Retrieved September 12, 2016.
  4. ^ a b "Institution History for Banc of California, National Association (200378)". Federal Financial Institutions Examination Council. Retrieved August 23, 2016.
  5. ^ "Rohr credit union opens travel agency". Chula Vista Star-News. January 26, 1984. p. D-5.
  6. ^ a b Allen, Mike (June 7, 2012). "Bank With Rohr Aircraft Heritage Gets OK for Acquisition". San Diego Business Journal. Retrieved August 23, 2016.
  7. ^ Reston, Maeve; Lazo, Alejandro (July 16, 2013). "Former L.A. Mayor Villaraigosa becomes advisor to community bank". Los Angeles Times. Retrieved August 23, 2016.
  8. ^ Reckard, E. Scott (April 23, 2014). "Irvine bank to buy Popular branches". Los Angeles Times. Retrieved August 23, 2016.
  9. ^ Rufus Koren, James (January 23, 2017). "SEC investigating Banc of California, CEO resigns". Los Angeles Times. Retrieved February 19, 2017.
  10. ^ Rufus Koren, James (April 28, 2017). "Banc of California says internal investigation found no violations of law". Los Angeles Times. Retrieved August 9, 2017.
  11. ^ Rufus Koren, James (January 25, 2017). "CalSTRS and L.A. hedge fund demand boardroom reform at troubled Banc of California". Los Angeles Times. Retrieved August 9, 2017.
  12. ^ Rufus Koren, James (March 17, 2017). "After scandal and shakeup, Banc of California wants to be boring again". Los Angeles Times. Retrieved August 9, 2017.
  13. ^ Versace, Chris (August 25, 2017). "Banc of California's Slump Shows Activism Ain't Always Great". The Street.Com. Retrieved September 12, 2017.
  14. ^ "Banc of California Focuses on Financial Literacy as Part of USC Athletic Sponsorship" (Press release). Banc of California. June 24, 2014. Retrieved August 23, 2016 – via Business Wire.
  15. ^ a b Koren, James Rufus (August 23, 2016). "Banc of California snags naming rights for L.A. Football Club soccer stadium". Los Angeles Times. Retrieved August 23, 2016.
  16. ^ Novy-Williams, Eben (August 23, 2016). "Bank Run by 41-Year-Old Signs $100 Million Stadium-Name Deal". Bloomberg News. Retrieved August 25, 2016.
  17. ^ Novy-Williams, Eben (May 27, 2020). "Banc of California Paid $20 Million to End L.A. Soccer Stadium Name Agreement". Variety. Retrieved May 30, 2020.

External links[edit]