TARP funds: Southern California banks that still owe

A list of South­ern Cali­for­nia banks that as of June 6 had not re­paid all funds from the U.S. Treas­ury’s Troubled As­set Re­lief Pro­gram, with missed quarterly di­vidend pay­ments. Read more: Many small banks still struggle to re­pay TARP.

July 6, 2012
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Name Headquarters Assets Received Missed payments Status Comment
Cathay General Bancorp (Cathay Bank) Los Angeles $10.6 billion $258 million Dec. 5, 2008 None Expects bank regulators to approve full repayment this year Chief Financial Officer Heng Chen: "We think our capital ratios are strong enough to repay."
Pacific Capital Bancorp (Santa Barbara Bank & Trust) Santa Barbara $5.8 billion $180.6 million Nov. 21, 2008 None Gerald R. Ford investor group took over troubled institution in April 2010, providing $500 million in new capital. Deal gave Treasury Department 11% stake in bank. Pending sale to UnionBanCal Corp. would more than double Ford's money and yield Treasury Department $166.7 million, 92.3% of initial investment. Chief Executive Carl Webb: "Had the bank gone to the FDIC through receivership, the U.S. Treasury and taxpayers would have gotten zero."
BBCN Bancorp (BBCN Bank) Los Angeles $5.2 billion $122 million: $67 million Nov. 20, 2008, and $55 million Dec. 12, 2008 None Koreatown giant, created by merger of Nara and Center banks last year, repaid in full last week
Pacific City Financial Corp. (Pacific City Bank) Los Angeles $586 million $16.2 million Dec. 19, 2008 12 Reported $1.1-million profit last year after nearly $33 million in losses during 2009 and 2010 Didn't return calls
Community West Bancshares (Community West Bank) Goleta $623 million $15.6 million Dec. 19, 2008 One Bank regulators vetoed May dividend payment because of capital reserve requirements. Hopes its return to profitability this year will improve stock price, enabling bank to raise capital from new investors and repay
Broadway Financial Corp. (Broadway Federal Bank) Los Angeles $414 million $15 million: $9 million Nov. 14, 2008, and $6 million Dec. 4, 2009 Eight Treasury Department has agreed to trade its dividend-paying shares for non-dividend stock at a 50% discount if Broadway raises $5 million in new capital. CEO Wayne Kent-Bradshaw said he hopes to get the deal done this summer. "It's like herding cats, but we're working through the situation with a smile."
NCAL Bancorp (National Bank of California) Los Angeles $341 million Received $10.5 million Dec, 19, 2008 Four Agreed June 11 to be acquired by Grandpoint Capital of Los Angeles. Deal will repay Treasury Department in full.
Commonwealth Business Bank Los Angeles $413 million $7.7 million Jan. 23, 2009 Nine Restricted by Federal Reserve from paying dividends Considering options, including buying back own shares if regulators permit
Western Community Bancshares (Frontier Bank, El Paseo Bank) Palm Desert and Park City, Utah $259 million $7.3 million Dec. 23, 2008 Eight Ordered by regulators to raise capital, clean up soured loans and lending procedures, and improve money-laundering defenses Chairman Clifford A. Miller and CEO Joseph W. Kiley III didn't return phone calls
ICB Financial (Inland Community Bank) Ontario $221 million $6 million March 6, 2009 None Waiting to repay in full until March 2014, when annual dividend rises to 9% from 5% Chief Executive James S. Cooper: "TARP was a big help for us, and our strategic plan includes repayment in full ďż˝ but not today. A 5% dividend is a very inexpensive rate for the capital."
Beach Business Bank Manhattan Beach $298 million $6 million Jan. 30, 2009 None Repaid final $300,000 last week. Taken over this week by First PacTrust Bancorp, parent of Pacific Trust Bank of Irvine First PacTrust CEO Greg Mitchell: "It's great to be a TARP-free bank."
CalWest Bancorp (South County Bank, Inland Valley Bank, Surf City Bank) Rancho Santa Margarita $159 million $4.7 million Jan. 23, 2009 Seven Under regulatory orders to overhaul strategy and management, raise capital, and clean up loans and lending procedures. Did not return phone calls
Bank of Southern California San Diego $196 million Received $4.2 million: $2.2 million April 10, 2009, and 2.0 million Dec. 11, 2009 None Former First Business Bank is working off backlog of past-due loans, de-emphasizing commercial mortgages at request of regulators. Raised $3 million in new capital last year, mainly from existing shareholders. CFO James Burgess: "We'd like to pay it back as soon as the regulators allow it. We have another two years before the dividend goes to 9%."
Pacific Commerce Bank Los Angeles $162 million $4.1 million Dec. 23, 2008 Seven Barred by regulators from paying dividends while working through troubled loans CFO Richard Koh: "Everything is on the table. If Treasury offers us an incentive to pay it off, we'd certainly look at it."
Premier Service Bank Riverside $139 million $4 million Feb. 20, 2009. 12 Being acquired by First California Financial Group, parent of First California Bank of Westlake Village, for $2 million in stock First California CEO C.G. Kum says Premier Service will repay the government before acquisition closes in third quarter.
Santa Clara Valley Bank Santa Paula $132 $2.9 million Feb. 13, 2009 Nine Still under regulatory restrictions after installing new executives and raising capital twice from existing shareholders CEO Cheryl L. Knight: "We want to pay it off as soon as they will let us. Our goal is early next year, but we need permission to repay and they haven't given it yet."
US Metro Bank Garden Grove $92 million $2.9 million Feb. 6, 2009. Two One-branch bank has not reported a profitable year since opening in 2006. Did not return phone calls
Ojai Community Bank Ojai $131 million $2.1 million Feb. 6, 2009 Two FDIC cease-and-desist order was lifted last year when bank cleaned up its troubled loans and raised $1.5 million in new capital from local investors. CEO David Brubaker: "TARP was beneficial for us, and like good citizens we anticipate paying it back. We're exploring ways to do something, but it may not happen this year."
Saigon National Bank Westminster $56 million $1.5 million Dec. 23, 2009 14 One-branch bank focused on Vietnamese immigrants has lost more than $16 million since opening in 2005. Under regulatory orders for a sweeping overhaul of operations and management. Did not return phone calls

Sources: Regulatory sites; U.S. Treasury; Keefe, Bruyette & Woods; SNL Financial; Times research


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