First Interstate to Buy Ventura’s Bank of A. Levy : Finance: The acquisition extends the Los Angeles-based institution’s foray into the fast-growing regions of the West.
First Interstate Bancorp extended its foray into the fastest-growing regions of the West on Tuesday with the purchase of the Bank of A. Levy, a 112-year-old institution that played a key role in transforming once-rural Ventura County into a budding metropolis.
Los Angeles-based First Interstate said it will buy the holding company of Bank of A. Levy, Ventura County’s oldest independent bank, for $86.5 million in First Interstate stock.
The sale of such mid-size, independent banks to far bigger institutions has seemed almost preordained in recent years, but some Ventura County civic leaders and Levy’s own customers immediately began mourning the sale.
They worried that a banking behemoth such as First Interstate--California’s second-largest financial institution--will not offer the same homespun service and community involvement that Levy has provided for more than a century.
“In some ways, the Bank of A. Levy could be deemed the founder of Oxnard,” Oxnard Mayor Manuel Lopez said. “The bank was the lifeblood of the city. They were born with the city and they helped the city develop.”
Added Barbara Dick, a store clerk who has banked with Levy for more than 40 years: “So many times you come to the Bank of A. Levy, they call you by name. I just hate to see the smaller businesses taken over by big corporations.”
The deal marks First Interstate’s second purchase in Ventura County this year. In January, it completed the $23-million acquisition of First State Bank of the Oaks, a five-branch bank headquartered in Thousand Oaks.
“This acquisition . . . offers us an outstanding opportunity to expand our position in one of the state’s fastest-growing markets,” said First Interstate Chief Executive Bruce G. Willison, noting Ventura County’s rapid growth and high household income.
First Interstate has bought more than a dozen smaller, community-oriented banks over the past 18 months. Most of those acquisitions have been in fast-growing suburban areas, as it tries to expand beyond the saturated markets of Los Angeles and Orange counties.
The purchase is expected to be completed in early 1995, First Interstate said.
First Interstate has only eight branch offices in Ventura County, while Levy boasts 17 and about 275 employees. However, some branches will be closed and an undetermined number of workers will be laid off at both Levy and First Interstate as the two banks consolidate operations, First Interstate spokesman Ken Preston said. The sale of Bank of A. Levy, based in the city of Ventura, brings an important chapter of Ventura County’s history to a close.
The bank was founded in 1882 by Achille Levy, a French immigrant and dry-goods merchant whose early bank customers ranged from small-business owners to the farmers who grew fruits and vegetables in Ventura County’s fertile soil.
One of Levy’s daughters eventually married into the Milligan family of Ventura County, and leadership of the bank has been held by the Milligans ever since. Marshall C. Milligan, the bank’s current president, is the fourth generation of his family to run the company.
On Tuesday, Milligan expressed some sadness about having to sell the bank. But, he added, economic factors have made it increasingly difficult for small banks to compete with big ones, and the new technology that many customers want is expensive for all but the largest institutions to bankroll.
“We see the trend in the industry not favoring smaller banks,” Milligan said. “This is the final chapter in a long story full of history and tradition, so we’re sad to see it end.”
First Interstate’s Acquisitions
Los Angeles-based First Interstate Bancorp, parent of First Interstate Bank, has gone on a buying spree over the past 18 months. About half its acquisitions have been in fast-growing California markets.
Price Assets Bank Date (millions) (millions) Bank of A. Levy Aug. 2, 1994 $86.5 $625 University Savings Bank July 13, 1994 190.4 1,144 Bank of North Texas July 5, 1994 66.0 388 Sacramento Savings Bank May 18, 1994 331.0 3,026 Great American Federal Savings Assn. May 13, 1994 26.0 398 Far West Federal Savings Bank April 15, 1994 1.0 15 Med Center Bank Feb. 11, 1994 12.2 175 Mesquite National Bank Jan. 20, 1994 5.3 46 Chase Bank of Arizona Dec. 16, 1993 102.0 527 The Bank of the West Dec. 9, 1993 35.8 249 HomeFed Bank (West L.A.) Dec. 3, 1993 6.1 248 Tarrant Bank Aug. 25, 1993 2.9 560 San Diego Trust & Savings Bank Aug. 9, 1993 340.0 2,028 First State Bank of the Oaks Aug. 4, 1993 23.0 144 California Republican Bank May 25, 1993 68.0 570 HomeFed Bank (Fresno) Jan. 27, 1993 4.1 149
Bank Offices Bank of A. Levy 17 University Savings Bank 25 Bank of North Texas 4 Sacramento Savings Bank 45 Great American Federal Savings Assn. 15 Far West Federal Savings Bank 2 Med Center Bank 2 Mesquite National Bank 1 Chase Bank of Arizona 11 The Bank of the West 6 HomeFed Bank (West L.A.) 4 Tarrant Bank 3 San Diego Trust & Savings Bank 53 First State Bank of the Oaks 5 California Republican Bank 12 HomeFed Bank (Fresno) 5
Source: First Interstate Bancorp
