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Thursday, Mar 28, 2024

Banking Industry Sees Spurt of Branch Growth

Notwithstanding the difficult economy, several new bank branches are opening throughout the Greater San Fernando Valley – evidence that many banking institutions are pursuing aggressive growth strategies. Those opening new branches include Community Bank, California United Bank, Wells Fargo and J.P. Morgan Chase. “There’s no question we’re trying to capitalize on our sound fiscal capacity today, taking advantage of the weaknesses in the market to grow and expand,” said Alan Buckle senior vice president and regional manager for Community Bank, which will open a new branch in Woodland Hills July 1. “The bank really has the capacity, the capital and the desire to grow and the general plan is we want to do it organically to the tune of 1-2 [branches] a year,” he added. Community Bank, which reported a 43 percent increase in net income to $3.6 million for the first quarter of 2010 over the same quarter last year, has assets exceeding $2.4 billion. As part of its growth strategy, the bank is also launching an unprecedented advertising campaign using a variety of local media and has started a new online banking platform. “There’s really an intense focus on building our brand, building our name and getting it out there,” said Dario Serna, vice president in charge of marketing. The 65 year-old bank, which takes pride in its prudent lending practices, escaped much of the turmoil that led other banks to fail during the recession and is now taking steps to further strengthen its position as the economy begins its slow recovery. “Now our focus is in trying to enter markets that fit our demographic profile and on attracting quality bankers,” said David A. Rosso, who will lead the Woodland Hills office. “The new branch will have a team of about 5-6 people but with the anticipation of growth, we will increase that number as the needs of the market dictate,” he added. New markets Locally, California United Bank is also looking to conquer new markets. The Encino-based bank expanded into Glendale earlier this year, and recently announced plans to open a branch in Orange County. With $500 million in assets, the business bank is seeking entry into new markets which are populated with high numbers of small and mid- size businesses. “We target middle market businesses and offer the same products and services that large banks offer,” said Chief Operating Officer Anne Williams.”We’re growing very rapidly to the tune of one branch per year since the bank opened in 2005. If we stick to our business plan I think you can expect to continue to see the same historic levels of growth.” Wells Fargo and J.P. Morgan Chase are also rapidly expanding. Already in 2010, Wells Fargo has opened eight new banking stores in Glendale, Granada Hills, Toluca Lake, Northridge, Woodland Hills, Studio City and La Canada Flintridge, increasing their total number of branches in the San Fernando Valley to 58. Chase plans to open three branches this year in Tujunga, Calabasas and Woodland Hills between July and September. Overall, Chase will open 41 new branches this year in the Los Angeles/ Orange/San Bernardino/ Riverside and Ventura County areas. “We’re excited about growth. We’re actively pursuing locations and it’s a lot of locations we’re looking at. We’re always looking to increase our distribution,” said Marla Vasquez, senior vice president and regional president for Wells Fargo’s San Fernando Valley Community Bank. New hires Wells Fargo, which merged with Wachovia Corp. at the end of 2008, recently hired 20 new bankers for the San Fernando Valley region and is continuing forward with a growth strategy that focuses on recruiting, and training talent as well as investing in the communities in which they serve. “As our economy gets better our customers will be in better shape. We want to make sure we are set up for success. We want to have team members ready to serve when the economy recovers,” said Vasquez. J.P. Morgan Chase, which acquired Seattle-based Washington Mutual in 2008, has also increased its number of branches in the San Fernando Valley to a total of 49 in recent years. Last year Chase opened two branches in North Hollywood and North Hills. “We feel this is a market ripe for exposing customers to our products and services and also for exposing our customers to products and services that were not available to them before,” said Chase spokesperson Gary Kishner. He explained that while services for businesses were very limited at WAMU, now Chase is offering an expanded line of products geared towards businesses. The programs range from supporting start-ups to meeting the needs of those companies that do international trading. Chase now offers the full suite of SBA loans as well as private wealth management. The bank is even offering student loans, something not available before.

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