First PacTrust names Sugarman CEO
Originally published in L.A. BIZ
September 25, 2012, 10:56 AM EDT
First PacTrust Bancorp Inc., the holding company for PacTrust Bank and Beach Business Bank, has named Steven A. Sugarman as chief executive officer.
Sugarman, who joined Irvine-based First PacTrust as a director in November 2010, had been co-CEO since mid-August.
Gregory A. Mitchell, who was a director co-CEO with Sugarman, has resigned. Mitchell, who joined First PacTrust (NASDAQ: BANC) in November 2010, will continue to be a consultant to the company for up to six months.
The company also named Robert M. Franko as chief executive of Pacific Trust Bank. Franko continues to also serve as president of First PacTrust and CEO of Beach Business Bank.
“We are thrilled to have Steven Sugarman and Bob Franko lead our organization forward,” First PacTrust Chairman Timothy R. Chrisman said in a statement. “Steve has been key to setting and executing our strategic plan over the past two years and has the full support of the board to lead the next phase of our growth.
“Bob’s deep commercial banking experience and strong operational excellence has convinced the board that he is the ideal leader for our banks,” Chrisman added. “He will be focusing on integrating our banking assets into a single commercial bank, thereby realizing numerous financial and strategic synergies.”
Sugarman, who is chairman of the board’s Strategic Planning Committee, said the banks are now approaching $2.2 billion in assets, including its recently announced acquisition of The Private Bank of California.
“With the clarity that comes with today’s board actions, First PacTrust will begin the next phase of its strategic plan,” Sugarman said. “This will center on the integration of our assets and operations across our banks into a single, full-service commercial bank with increased profitability, increased capabilities and enhanced systems.”
“By every metric – capital, asset quality, management, earnings and liquidity – the company is strong and well positioned, both financially and strategically,” Mitchell said. “As a result of the company’s strong current position, it became clear to me that this was the perfect time for me to step away and pursue personal goals.”
Sugarman is the founder and CEO of COR Capital LLC, a Southern California-based investment firm. Previously, he co-founded a $2 billion investment advisory firm focused on public equities and worked as a management consultant at McKinsey & Co. and an investment advisor at Lehman Brothers.
Franko founded Beach Business Bank in 2003. His 30-year career includes heading the $10 billion personal trust and investments division of City National Bank; serving as executive vice president and chief financial officer of Imperial Bancorp (NYSE: IMP), and chairman and CEO of Imperial Trust Co.; and chief financial officer of Canary Wharf Development Co.
PacTrust Bank and Beach Business Bank together operate 19 banking offices in Los Angeles, Orange, San Diego and Riverside counties, and 23 loan production offices in California, Arizona, Oregon and Washington.