Commercial Center Bank Finally Finds a Buyer : Acquisition: First Banks Inc. of St. Louis will pay $32.5 million in cash for Santa Ana-based operation.
After more than five years of searching for a buyer, Orange County’s largest community bank finally found one Tuesday.
A St. Louis bank holding company has agreed to acquire CCB Bancorp. Inc. of Santa Ana and its principal subsidiary, Commercial Center Bank, for $32.5 million in cash. The purchase positions First Banks Inc. of Missouri to expand its commercial banking operations in California. The sale could be completed early next year.
“This is an excellent opportunity for First Banks to enter the vibrant Orange County market,” said James Dierberg, chairman of First Banks.
With this acquisition, banking analysts said, First Banks, which has a strong emphasis on consumer banking, could move to expand Commercial Center’s business in Southern California.
“Out-of-state banks are manifesting their interest in Orange County,” said Ed Carpenter, chairman of Carpenter & Co., a bank consulting firm in Irvine. “At $32 million, it’s a good price for the acquirer and could allow First Banks to create the largest bank headquartered in Orange County.”
Known as a well-capitalized regional bank, Santa Ana-based Commercial Center had $310 million in assets and $261 million in deposits as of June 30. First Banks has about $2.7 billion in assets and 91 branches in Missouri, Illinois and Texas.
“California is beginning to turn around, and people from other states are beginning to recognize that and look for opportunities here,” said Alan R. Holbrook, president and chief executive officer of Commercial Center, who will be retiring from the bank when the deal is completed. His replacement has not yet been identified.
“This is a good deal for Orange County. We will begin to be a true community bank and open more branches here in Orange County,” Holbrook said.
With about 85 employees, Commercial Center Bank has an unusual branch network, with offices located throughout the state. Along with a branch and headquarters in Santa Ana, there are branches in San Diego, Beverly Hills, San Jose and Walnut Creek. However, the branches in Beverly Hills and San Diego are closing as part of the deal, Holbrook said. No major layoffs are planned as part of the sale, he said.
After losing $6 million in 1993 on its mortgage servicing operation, which sends bills to borrowers and collects loan payments, Commercial Center closed that division last month, Holbrook said.
Founded as Westlands Bank in 1970, Commercial Center was sold in early 1984 to Canadian Commercial Bank of Edmonton, in Alberta, and its name was changed. But just a year later, the Canadian bank became that nation’s first bank failure since 1923.
It went on the block in the mid-1980s, when Price Waterhouse Ltd. of Toronto, the court-appointed liquidator, began selling assets of the bank. C. Garth MacGirr, a Price Waterhouse Ltd. partner in Canada, had acted as the bank’s chairman, but he was replaced this year by William D. Grace, who also will be retiring when the acquisition is completed.
In January, Canadian operators of the bank focused on completing a deal in 1994, hiring a Wall Street investment bank to solicit bids, mainly from out-of-state banks.
Commercial Center Bank at a Glance
Founded: In 1970, as Westlands Bank
Employees: 85
Assets: $310 million
Branches: Santa Ana, Beverly Hills, San Diego, Walnut Creek, San Jose
Parent company: CCB Bancorp. Inc. of Santa Ana
Owner: Bankruptcy estate of Canadian Commercial Bank of Edmonton, Alberta
Chairman: William D. Grace
President: Alan R. Holbrook
Earnings Roller-Coaster
Commercial Center Bank earnings have been volatile during the past decade, and a predicted loss this year would leave the institution with two consecutive years of red ink. Net income/losses in millions:
1994: -$0.5*
* First six months
Source: Findley Reports, Anaheim; Researched by DEBORA VRANA/Los Angeles Times
