TARP funds: Southern California banks that still owe

A list of Southern California banks that as of June 6 had not repaid all funds from the U.S. Treasury’s Troubled Asset Relief Program, with missed quarterly dividend payments.

Cathay General Bancorp (Cathay Bank)

Headquarters: Los Angeles

Assets: $10.6 billion

Received: $258 million Dec. 5, 2008

Missed payments: None

Status: Expects bank regulators to approve full repayment this year

Comment: Chief Financial Officer Heng Chen: “We think our capital ratios are strong enough to repay.”

Pacific Capital Bancorp (Santa Barbara Bank & Trust)

Headquarters: Santa Barbara

Assets: $5.8 billion

Received: $180.6 million Nov. 21, 2008

Missed payments: None

Status: Gerald R. Ford investor group took over troubled institution in April 2010, providing $500 million in new capital. Deal gave Treasury Department 11% stake in bank. Pending sale to UnionBanCal Corp. would more than double Ford’s money and yield Treasury Department $166.7 million, 92.3% of initial investment.

Comment: Chief Executive Carl Webb: “Had the bank gone to the FDIC through receivership, the U.S. Treasury and taxpayers would have gotten zero.”

BBCN Bancorp (BBCN Bank)

Headquarters: Los Angeles

Assets: $5.2 billion

Received: $122 million: $67 million Nov. 20, 2008, and $55 million Dec. 12, 2008

Missed payments: None

Status: Koreatown giant, created by merger of Nara and Center banks last year, repaid in full last week

Pacific City Financial Corp. (Pacific City Bank)

Headquarters: Los Angeles

Assets: $586 million

Received: $16.2 million Dec. 19, 2008

Missed payments: 12

Status: Reported $1.1-million profit last year after nearly $33 million in losses during 2009 and 2010

Comment: Didn’t return calls

Community West Bancshares (Community West Bank)

Headquarters: Goleta

Assets: $623 million

Received: $15.6 million Dec. 19, 2008

Missed payments: One

Status: Bank regulators vetoed May dividend payment because of capital reserve requirements.

Comment: Hopes its return to profitability this year will improve stock price, enabling bank to raise capital from new investors and repay

Broadway Financial Corp. (Broadway Federal Bank)

Headquarters: Los Angeles

Assets: $414 million

Received: $15 million: $9 million Nov. 14, 2008, and $6 million Dec. 4, 2009

Missed payments: Eight

Status: Treasury Department has agreed to trade its dividend-paying shares for non-dividend stock at a 50% discount if Broadway raises $5 million in new capital.

Comment: CEO Wayne Kent-Bradshaw said he hopes to get the deal done this summer. “It’s like herding cats, but we’re working through the situation with a smile.”

NCAL Bancorp (National Bank of California)

Headquarters: Los Angeles

Assets: $341 million

Received $10.5 million Dec, 19, 2008

Missed payments: Four

Status: Agreed June 11 to be acquired by Grandpoint Capital of Los Angeles. Deal will repay Treasury Department in full.

Commonwealth Business Bank

Headquarters: Los Angeles

Assets: $413 million

Received: $7.7 million Jan. 23, 2009

Missed payments: Nine

Status: Restricted by Federal Reserve from paying dividends

Comment: Considering options, including buying back own shares if regulators permit

Western Community Bancshares (Frontier Bank, El Paseo Bank)

Headquarters: Palm Desert and Park City, Utah

Assets: $259 million

Received: $7.3 million Dec. 23, 2008

Missed payments: Eight

Status: Ordered by regulators to raise capital, clean up soured loans and lending procedures, and improve money-laundering defenses

Comment: Chairman Clifford A. Miller and CEO Joseph W. Kiley III didn’t return phone calls

ICB Financial (Inland Community Bank)

Headquarters: Ontario

Assets: $221 million

Received: $6 million March 6, 2009

Missed payments: None

Status: Waiting to repay in full until March 2014, when annual dividend rises to 9% from 5%

Comment: Chief Executive James S. Cooper: “TARP was a big help for us, and our strategic plan includes repayment in full — but not today. A 5% dividend is a very inexpensive rate for the capital.”

Beach Business Bank

Headquarters: Manhattan Beach

Assets: $298 million

Received: $6 million Jan. 30, 2009

Missed payments: None

Status: Repaid final $300,000 last week. Taken over this week by First PacTrust Bancorp, parent of Pacific Trust Bank of Irvine

Comment: First PacTrust CEO Greg Mitchell: “It’s great to be a TARP-free bank.”

CalWest Bancorp (South County Bank, Inland Valley Bank, Surf City Bank)

Headquarters: Rancho Santa Margarita

Assets: $159 million

Received: $4.7 million Jan. 23, 2009

Missed payments: Seven

Status: Under regulatory orders to overhaul strategy and management, raise capital, and clean up loans and lending procedures.

Comment: Did not return phone calls

Bank of Southern California

Headquarters: San Diego

Assets: $196 million

Received $4.2 million: $2.2 million April 10, 2009, and 2.0 million Dec. 11, 2009

Missed payments: None

Status: Former First Business Bank is working off backlog of past-due loans, de-emphasizing commercial mortgages at request of regulators. Raised $3 million in new capital last year, mainly from existing shareholders.

Comment: CFO James Burgess: “We’d like to pay it back as soon as the regulators allow it. We have another two years before the dividend goes to 9%.”

Pacific Commerce Bank

Headquarters: Los Angeles

Assets: $162 million

Received: $4.1 million Dec. 23, 2008

Missed payments: Seven

Status: Barred by regulators from paying dividends while working through troubled loans

Comment: CFO Richard Koh: “Everything is on the table. If Treasury offers us an incentive to pay it off, we’d certainly look at it.”

Premier Service Bank

Headquarters: Riverside

Assets: $139 million

Received: $4 million Feb. 20, 2009.

Missed payments: 12

Status: Being acquired by First California Financial Group, parent of First California Bank of Westlake Village, for $2 million in stock

Comment: First California CEO C.G. Kum says Premier Service will repay the government before acquisition closes in third quarter.

Santa Clara Valley Bank

Headquarters: Santa Paula

Assets: $132

Received: $2.9 million Feb. 13, 2009

Missed payments: Nine

Status: Still under regulatory restrictions after installing new executives and raising capital twice from existing shareholders

Comment: CEO Cheryl L. Knight: “We want to pay it off as soon as they will let us. Our goal is early next year, but we need permission to repay and they haven’t given it yet.”

US Metro Bank

Headquarters: Garden Grove

Assets: $92 million

Received: $2.9 million Feb. 6, 2009.

Missed payments: Two

Status: One-branch bank has not reported a profitable year since opening in 2006.

Comment: Did not return phone calls

Ojai Community Bank

Headquarters: Ojai

Assets: $131 million

Received: $2.1 million Feb. 6, 2009

Missed payments: Two

Status: FDIC cease-and-desist order was lifted last year when bank cleaned up its troubled loans and raised $1.5 million in new capital from local investors.

Comment: CEO David Brubaker: “TARP was beneficial for us, and like good citizens we anticipate paying it back. We’re exploring ways to do something, but it may not happen this year.”

Saigon National Bank

Headquarters: Westminster

Assets: $56 million

Received: $1.5 million Dec. 23, 2009

Missed payments: 14

Status: One-branch bank focused on Vietnamese immigrants has lost more than $16 million since opening in 2005. Under regulatory orders for a sweeping overhaul of operations and management.

Comment: Did not return phone calls

Sources: Regulatory sites; U.S. Treasury; Keefe, Bruyette & Woods; SNL Financial; Times research