Cunningham Resigns From First National

E.G. Cunningham, founder of San Diego-based First National Corp., resigned Thursday as chairman, president and a director of the San Diego-based bank holding company.

In a prepared statement, Cunningham said he anticipates joining another bank, which was not identified, within the next month.

Cunningham led First National’s asset growth from $17.2 million in 1981 to $103.1 million at year-end 1984. First-quarter earnings, however, were down 32% to $140,000.

First National Bank was the primary banker for J. David & Co., the La Jolla investment firm that collapsed in February, 1984. However, officials said Cunningham’s resignation was not connected to the collapse of the firm.

“We have sustained no losses whatsoever on J. David and we don’t anticipate any losses or further involvement,” First National Chairman Malin Burnham said Thursday. Burnham, who also heads a local real estate company, will become First National’s president while the bank searches for Cunningham’s replacement.

The bank was a defendant in a lawsuit brought by former J. David & Co. investors, who charge that they were defrauded. That suit was settled two weeks ago, but terms are confidential. To date, the bankruptcy trustee has recouped less than $20 million of the $200 million that J. David & Co. pulled in from 1,500 investors.

Accountants for the trustee have said previously that both J. David (Jerry) Dominelli and his former top associate, Nancy Hoover, withdrew money from some First National accounts on which they were not signatories. The trustee has said that he is exploring legal remedies for the unauthorized withdrawals, although it is not certain whether the potential legal action would involve Hoover or First National Bank.