WCB Holdings Inc. Plans to Hire New CEO

Woodland Hills-based WCB Holdings,Inc., the parent company of Western Commercial Bank, announced it plans to hire Joseph W. Kiley III as President and Chief Executive Officer. Its previous CEO, Carl Raggio, a founding member of the bank, resigned June 22, amid speculation of the bank’s financial future. WCB Holdings Inc. has been navigating difficult economic times. The company incurred net losses of $768,000 for the second quarter of this year and $4.94 million for the six months year-to-date ended June 30, 2010. During the same periods in 2009 the Company reported net losses of $315,000 and $326,000, respectively. Last October, the Woodland Hills-based bank was ordered to take actions to resolve its “unsafe or unsound banking practices” found by the Federal Deposit Insurance Corp. and the California Department of Financial Institutions. A cease and desist order alleged the bank’s board of directors failed to provide adequate supervision; that the bank operated with inadequate capital; had a large dollar amount of poor quality loans; operated in a manner as to produce low earnings, and operated with inadequate provisions for liquidity. The bank was also ordered to have and retain qualified management. In August the company retained Kiley as a consultant, pending the processing and approval of an application with various regulatory agencies required for him to assume the role of president and CEO of WCB Holdings, Inc. and Western Commercial Bank. Kiley is an experienced banker with over 30 years of experience as a President and Chief Executive Officer of several Southern California Banks. “His acceptance of this new position brings us an added depth of experience, as a former CEO, which strengthens our ability to navigate through the difficult times,” said Jim Hussey, Chairman of the Board of Directors. On Sept. 15 the company reported its total assets grew 3 percent or $3.3 million from $106 million at December 31, 2009 to $109.4 million at June 30, 2010. For the same period, total loans shrank 11.4 percent or $11.1 million from $96.9 million to $85.8 million. Total deposits grew 10.1 percent or $9.6 million from $94.4 million to $104 million, respectively.