Proposed National City Bank Said to Be Close to Regulatory OK

A new bank being organized in National City may be close to getting its charter approved, allowing it to begin raising capital.

Garry Barnes, the designated chief executive for Gateway Pacific Bank, said he’s optimistic the bank will receive regulatory approval soon, possibly within 30 days.

“I’m optimistic that we’ll be getting it (approvals from both the state Department of financial Institutions and the Federal Deposit Insurance Corp.) in the near future,” Barnes said. “We’re targeting our opening for June or July.”

Should the bank receive approval, it would be the first state chartered commercial bank ever founded in National City. The city had a federally chartered bank sometime in the 1970s, Barnes said.

Another bank in organization, Vibra Bank based in Chula Vista, received approval from the state and is raising $14 million to $17.5 million in capital.

Barnes wasn’t too worried about competition arising from Vibra, or from an existing Chula Vista lender, Seacoast Commerce Bank, or from a host of other regional and national Banks that have offices in South County.

“The South County area has been strong in terms of its economic development,” he said. “We think it’s a growing, vibrant market and we think the timing (for starting a new bank) is great for us.”

Other bankers aren’t so sure. With the national and regional economies slowing down, and housing values continuing to decline, lending activity has been winding down.

Many Banks are dealing with higher amounts of problem loans, and reduced profit margins, caused by falling interest rates on loans and Banks paying out higher rates to attract new deposits.

“It’s a difficult time for banks right now,” said Rick Sanborn, the new CEO at Seacoast Commerce Bank, who wished his new competitors well.

Last year was the first time in many years that a single new bank didn’t open in San Diego. In 2006, two banks opened.

Barnes, a banker for about 30 years, is the point man for the Gateway Pacific, and has been working on the project for about a year. “There are a lot of moving parts to the process and regulatory ropes you have to go through,” he said when asked about the time.

Before taking on the job with Gateway Pacific, Barnes was most recently president and chief executive of Holladay Bank and Trust, a $50 million bank in Salt Lake City. He also served as president of Community First National Bank in Phoenix.

He began working in banking as a part-time teller while still attending college.

Barnes said he’s been coming to San Diego for decades because of friends living here and for recreation. He was contacted by Gateway Pacific’s chairman, Alex Carolino, to join the bank’s board of directors, and then was offered the job as its chief executive.

Carolino is the owner of several businesses, including Carolino Construction and Development, in addition to a mortgage bank, a real estate brokerage and an escrow firm.

Besides Barnes and Carolino, other members of Gateway Pacific’s board of directors are Hal Brown, the former director of San Diego State University’s Center for Community Economic Development, an entrepreneur training program; Tom Garcia, a retired university professor; Nick Inzunza, former mayor of National City and real estate investor; Teresita Paje, financial planner; Ed Plant, owner of Harborside Refrigerated Services; Ditas Yamane, business owner and president of the National City Chamber of Commerce; and Rob Yee, business owner.

The bank has designated two executives for its management team: Kirk Colburn as chief financial officer, who previously worked at Silvergate Capital Corp. and for the Federal Reserve Bank; and Chris Renko as chief credit officer, who previously worked at Centennial Bank and for Ramona National Bank.

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Seacoast Hires New CFO:

Seacoast Commerce Bank hired Ronnie Zivanic as its new chief financial officer last month, replacing the bank’s first CFO Toni Flannagan.

“Toni was instrumental in the formation of the bank (in June 2003) and helped guide the bank to where it is today, and we wish her well in her new endeavor,” Sanborn said.

Zivanic spent the last 17 years at U.S. Trust Bank, which was acquired by the Bank of America.

Her most recent position was controller for West Coast operations.

Sanborn said regulators did not disapprove Zivanic’s selection. He said they never approve any personnel change.

In another personnel move, Nicholas Zillges takes over as director of operations, a new job. He has more than 15 years experience in banking.

Sanborn said Seacoast Commerce is in the process of subleasing its designated branch office space in the Eastlake section of Chula Vista. The bank is going in a different direction and plans to open its first branch somewhere north of the city but not in 2008, he said.

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