Missouri Company to Take Control of Queen City Bank

Its capital base eroded by problem loans, QCB Bancorp, parent of Long Beach-based Queen City Bank, ceded its independence to a Missouri banking firm, accepting a $5-million capital infusion that will convert to a majority stake in QCB’s stock.

In a private placement, First Banks Inc. of St. Louis made the capital infusion through the purchase of capital debentures that are convertible into QCB common stock on or before Dec. 31, 1996.

After the conversion, First Banks will hold a “clear majority” of QCB’s shares, although the exact percentage of its holding cannot yet be determined, Fred D. Jensen, chief executive and president of QCB, said in a telephone interview Tuesday.

The infusion, approved by shareholders and regulators before last Friday’s closing, brought Queen City Bank’s capital back to a healthy level, Jensen said. Capital had been depleted by a number of bad loans, particularly in commercial real estate, he said.

As of June 30, QCB had assets of $66.6 million and deposits of $58.9 million. Queen City Bank has two offices in Long Beach and a third in Fountain Valley.

First Banks, with assets of $3.5 billion, operates 97 bank offices throughout Missouri and Illinois and has six offices in Texas.

It expanded into California this year, buying CCB Bancorp Inc., with offices in Santa Ana, San Jose and Walnut Creek; HNB Financial Group, with offices in Huntington Beach and Bellflower, and Irvine City Financial, with two offices in Irvine.