Embattled Valencia Picks New Chairman

Fullerton real estate broker Carleton G. Clor has been elected chairman of Valencia Bancorp and its financially troubled subsidiary, Valencia Bank. Clor, a founding director of the Santa Ana banking company, replaces Valencia founder Ray L. Smith.

Clor’s appointment comes one day after the bank announced Smith’s April 5 retirement, a realignment of bank management and layoffs of 15% of its work force. Valencia Bank last week said an 11-month-old deal for it to be taken over had collapsed; reported 1984 losses hit $5.7 million; and revealed an internal investigation of the misappropriation by several former employees of an additional $6.5 million from its trust department.

Smith, who remains as director of the bank and its holding company, had held the chairman’s post since he formed the bank in 1971. Smith’s role as chief executive officer has been assumed by Harvey Ferguson, who had been president and chief operating officer of the Valencia companies.

Clor, owner of Clor Realty and Investment Co., is a longtime Fullerton resident who has served on that city’s planning commission and currently is a member of the redevelopment committees sponsored by the city and the Fullerton Chamber of Commerce. He is a director and former vice president of the California Assn. of Realtors as well as past president of the North Orange County Board of Realtors.

The bank is operating under a Federal Deposit Insurance Corp. order to increase its depleted capital base and has been selling assets and laying off employees in an effort to cut costs and raise funds.