Carson Councilman Mitoma Ousted as Head of Bank He Founded in Dispute Over Expansion

Carson City Councilman Michael Mitoma has been forced out as president and chairman of Pacific Business Bank, which he founded in 1984, after its board rejected his proposal for an aggressive expansion program.

Mitoma, who resigned Tuesday, said he did not want to elaborate about the expansion program. “The board wants to take the bank in one direction and I in another. I’m more on the growth side.”

Calls Action ‘Amazing’

He termed the board’s action, which took place Monday, “amazing.”

“If the bank were having problems, I could understand all this, but the bank is doing well,” he said.

In a press release, the bank said Mitoma resigned “to pursue other ventures due to philosophical differences with the board of directors concerning the future direction of the bank.”

Relations between Mitoma and his former understudy at the bank, C. Glen Higuchi, appear to be a sore point.

Mitoma said he did not want to comment on whether he had lost out in a power struggle with Higuchi, who was the bank’s chief administrative officer and, with Mitoma’s departure, was named president and chief executive officer. But Mitoma left out Higuchi when saying he bore no ill will to the bank’s directors and confirmed that the omission was intentional.

Higuchi was not available for comment.

Mitoma said another issue in the board’s decision may have been the amount of time he spent in civic involvement as a councilman. “It probably hurt. It didn’t help my situation,” he said.

He also said some board members may have felt unsure of his commitment to the bank because they suspected that he wanted to advance politically as a legislator, an ambition he denied having.

“This may have been a concern of the board,” he said. “There was a comment.”

Both the bank and Mitoma say the bank is in good shape. Mitoma said the bank doubled its income last year and that “everything is set up for our income to double this year.”

The press release said that since its founding five years ago, the bank’s assets have grown to $50 million “under the leadership of Mitoma” and that the bank opened its first branch office, in Gardena, in 1987. Higuchi vowed to “ensure the bank’s continued growth,” the release said.

Mitoma said a settlement with the bank has left him financially in good shape. “I don’t have to work for a long time,” he said.

Mitoma is still a member of the bank’s board but said he would resign after selling his 21,000 shares of bank stock--about 7% of the total issued. He said the price varied between $6 and $6.50. “I am not going to invest in anything I don’t have any control over,” he said.

Wouldn’t Repeat

“I feel good that I have not let any of my shareholders down. If you asked me would I ever do it again, the answer would be no.”

Mitoma said he will take a vacation of several weeks in early March after taking care of loose ends at the bank.

“I’m going to go to Mexico,” he said. “I am going to lie on the beach, drink beer and go fishing.”