BANKING / FINANCE : American Commerce National Hires Veteran Banker as New President

In a move to add management depth and assuage regulators, American Commerce National Bank in Anaheim has hired veteran banker L. Don Sargent as president and chief executive.

Sargent, 54, replaces Gerald J. Garner, who has run the day-to-day operations of the bank since it opened in 1984 and remains as chairman. Garner’s family owns or controls the largest single block of bank stock.

Sargent, of Villa Park, was president and chief executive of Mechanics National Bank in Paramount for 2 years and, before that, held the same posts at Cerritos Valley Bank in Norwalk. A banker for 29 years, he was recently elected California’s representative to the Independent Bankers Assn. of America.

He is well-known by regulators for his work in helping to turn around money-losing operations at Mechanics National and Cerritos Valley.

American Commerce has been very profitable, but regulators have been scrutinizing Garner’s activities. Garner is a lawyer by trade, not a banker. However, his license to practice law was suspended by a New York court for notarizing adoption documents that used false names.

Garner told shareholders in June, 1987, that regulators had been looking into his purchases of bank stock for 2 years. In addition, disgruntled shareholders and others have notified regulators about what they consider to be improper loan practices and other irregularities and have sued Garner, as well as the bank.

“The regulators have never been happy with Garner as chief executive,” said Gerry Findley, a Brea-based industry consultant. “So they look into everything they could find, and there’s been a lot of things floating round.”

The bank also is growing to the point that it needs professional banking experience, Findley said. Garner acknowledged as much in prepared remarks. He could not be reached for comment Monday.