Capistrano Bank Names 3 to Oversee Its Operations

Capistrano National Bank has formed a three-member executive committee to oversee operations at the Santa Ana bank while a search continues for a permanent chairman to replace Philip A. Stearns.

Stearns died of a cerebral hemorrhage Jan. 12. He was 55.

The committee members are: Donald Douglas, founder of Capistrano National Bank and former chairman; Roy Brynes, a San Juan Capistrano pathologist, and Richard Wade, a real estate developer. All are current members of the bank’s board of directors.

Bank President Meredith Russell said the search for a new chairman may be a lengthy one.

Stearns, founder of Stearns Development Co., a Newport Beach real estate development and construction firm, was an investor in the bank and had served on its board of directors for two years. It was only six months ago that he became chairman, replacing Douglas, who retired after a group of investors pumped $5 million into the ailing bank.

Stearns then hired Russell, who credited Stearns with easing problems with the bank’s real estate loan portfolio.

First-Half Profit Reported

The real estate loans, affected by a downturn in the housing industry during the 1979-82 recession, were blamed for Capistrano’s string of losses.

The changes in management and the new cash flow helped turn the bank around after two years of losses.

The bank reported profits of $76,000 for the first half of 1984, ended June 30.

The bank has not yet reported earnings for its third quarter and fiscal year, but it reported losses of $1.5 million in 1983 and $2.4 million in 1982.