Mystery Investor After 20,000 Shares in Bank

An unidentified investor is attempting to buy up to 20,000 shares of Pacific Commerce Bank stock for $15 per share, or 50% more than the company’s per-share book value.

But the potential buyer is “not somebody who would be a ‘control’ person,” according to Orange County attorney Gary Findley, who represents the investor.

The bank makes its own market for the stock, and has been selling it for about $15 per share recently, according to president and chief executive Thomas D. Michelli.

If the client successfully buys the 20,000 shares, his equity in the 15-month-old Chula Vista bank would be “well below 10%,” said Findley.

Although he refused to disclose the identity of his client, Findley insisted that he is not fronting for San Diego County businessman and bank director Roque De La Fuente Jr., who was involved in a minor proxy skirmish at the bank’s annual meeting in April.

Findley said he has received “quite a few responses” to his client’s offer, which was mailed to Pacific Commerce shareholders last week. “To be honest,” said Findley, “I think the price is too high. There are very few banks being sold or traded at that rate (1.5 times book value).”

Findley is the son of Jerry Findley, who publishes the Brea-based Findley Reports publication that rates the performances of banks. The Findley firm was just a research house in the late 1970s. But, when the banking boom hit the state, the firm began consulting with banks, performing economic analysis and regulatory work.

Michelli said he isn’t too concerned about the unidentified would-be buyer. “They won’t tell me anything about the client,” he said. “But it means there’s a lot of interest in our stock.”

The bank recently reported net income of $50,359 for the two quarters ended June 30, compared to a mid-1984 loss of $61,813. Assets increased 113% to $13 million, while deposits rose 224% to $10 million. Loans jumped 295% to $8 million.