Offering Loans Out of the Region Improves Bank’s Profits
During his interview for the position of president at First National Bank of Ventura, Robert Zingg shared with the board of directors some changes he would institute in the bank’s Small Business Administration Loan Department.
Those changes, he said, would include granting loans to businesses throughout Southern California, not just in Ventura County as the bank had been doing.
Upon his hiring in January, 1994, Zingg began to follow through on his ideas. He now credits the overhaul of the bank’s small business loan department for the institution’s recent financial success.
First National Bank of Ventura reported a profit of $228,955 for 1994, the second highest profit in the bank’s eight-year history, and a significant turnaround from its $850,000 deficit in 1993.
“We did more than $6 million in small business administration loans in 1994 compared to about $3 million the prior year,” said Zingg. “There was just not enough of the [business loan] pie to split up doing just Ventura.”
By hiring more personnel to cover certain regions of Southern California, and by working with brokers in far-reaching areas, First National Bank was able to attract more qualified borrowers, said Zingg.
“Primarily our clients throughout Southern California are businesses looking to purchase the commercial buildings they are renting,” said Zingg. “Ventura itself is not as heavily involved in manufacturing as some areas in the San Fernando Valley and Los Angeles County. Those types of companies, as well as industry, are our bread and butter.”
Zingg said there was an initial skepticism on the part of the board about expanding the bank’s operation outside Ventura County.
“Ventura County is a very self-sufficient community and extending beyond its natural boundaries was a decision they made reluctantly,” he said. “They wanted proof the idea would work.”
Zingg said 1995 should be the bank’s most profitable year ever. He said he expects to top 1994 profits by the end of the third quarter.
