18 Banks Make Honor Roll

Eighteen of the county’s 39 banks made the annual list of Premier Performing Banks put together for the 13th year by longtime industry consultant Gerry Findley of Brea. Of 426 state-based banks, a record 180 are on Findley’s list.

The criteria are strictly mathematical. To make the list, a bank’s annual growth in assets, deposits or operating income must be at least 8%, its return on assets must be at least 1.25%, its return on equity must be at least 12% of equity capital and its net loan losses must be no more than 0.8% of total loans. Return on assets and return on equity are key measures of a bank’s profitability.

For some banks, the criteria have become

easy, so Findley has suggested that “super” performers reach a higher level--2% return on assets and 20% return on equity. Eight of 53 state banks that met the higher criteria last year are based in Orange County.

Making Findley’s list is no guarantee of health.

Past premier performers have included Heritage Bank in Anaheim, Capistrano National Bank in San Juan Capistrano, South Coast Bank in Costa Mesa and Valencia Bank in Santa Ana--all of which were later declared insolvent and closed by regulators.

But the list usually includes 20% to 30% of all the state’s banks, many of which have been well regarded and profitable for many years.

COUNTY’S PREMIER PERFORMING BANKS IN 1988

Years Growth Return Return Bank on List Rate on Assets on Equity Eldorado Bank 10 23.27% 2.58% 21.47% Citizens Bank of Costa Mesa 8 8.58 2.94 18.42 Orange National Bank 8 20.40 1.73 14.09 El Camino Bank 6 8.15 2.79 19.14 Pioneer Bank 5 18.19 3.24 27.66 Mariners Bank 5 31.77 1.93 21.47 National Bank of So. California 5 44.63 2.36 26.62 American Commerce National Bank 4 9.25 2.52 20.49 CommerceBank 3 20.46 2.49 22.81 Corporate Bank 3 26.69 3.25 27.43 Bank of Anaheim 2 14.12 1.61 18.95 Liberty National Bank 2 18.36 1.79 13.12 Huntington National Bank 2 21.90 2.25 17.00 Mission Viejo National Bank 2 27.64 3.30 42.69 United American Bank 2 38.40 1.60 15.04 Dana Niguel Bank 1 17.55 1.75 17.57 California City Bank 1 11.95 1.41 23.76 Colonial Bank 1 56.64 3.87 33.94

Loan Loss Bank Rate Eldorado Bank 0.42% Citizens Bank of Costa Mesa 0.69 Orange National Bank 0.06 El Camino Bank 0.07 Pioneer Bank 0.31 Mariners Bank 0.13 National Bank of So. California 0.28 American Commerce National Bank 0.30 CommerceBank 0.42 Corporate Bank 0.07 Bank of Anaheim 0.11 Liberty National Bank 0.07 Huntington National Bank 0.60 Mission Viejo National Bank 0.17 United American Bank 0.39 Dana Niguel Bank 0.31 California City Bank (0.45) Colonial Bank (0.30)

Source: The Findley Reports