Also: Ex-Prudential executive joining Redwood Trust Inc.
[caption id="attachment_15549" align="alignright" width="108" caption="Sherrill Stockton"][/caption]
Sherrill Stockton and David Titus have left their long-time positions at Sonoma Bank, which was purchased in 2007 by Spokane, Wash.-based Sterling Savings, and moved to Exchange Bank and First Community Bank, respectively.
[caption id="attachment_15546" align="alignleft" width="108" caption="Michael Rice"][/caption]
Meanwhile, Michael Rice and Michael Moulton both moved from Tamalpais Bank in San Rafael to Circle Bank in Novato.
Mr. Rice joined Circle Bank as senior vice president of business lending and equipment leasing in March.
Mr. Moulton was brought on as chief financial officer in September.
In the cases of Mr. Rice, Ms. Stockton and Mr. Titus, the banks they went to will be able to take advantage of their expertise in SBA lending.
Because of the conditions on SBA lending, it has developed into a specialty. The stipulations on the way the loans are written to be guaranteed are rigorous.
With the addition of Ms. Stockton as senior vice president and manager of SBA lending, Exchange Bank also announced the hire of Debbie Kelly as vice president and senior fiduciary in wealth management.
“We are very pleased to have two professionals of the stature and experience of Debbie and Sherrill join our team,” said Bill Schrader, the bank’s president. “Both of these individuals are well known and respected in the community, and the addition of their talents will position us for continued growth and expanded services in two strategically important areas for us, personal trust and SBA lending.”
Coming back into the SBA market was a strategic move by Exchange Bank, said Craig Van Selow, executive vice president of the bank.
“It is a less risky way to diversify a portfolio,” he said.
In addition to SBA loans, the bank plans to enhance small business offerings and increase mortgage market share.
Ms. Stockton is widely known as a local expert in the field of SBA lending.
Mark Quinn, district director of the U.S. Small Business Administration in San Francisco, said he has, on occasion, gone to Ms. Stockton with questions about SBA lending in community banks.
Mr. Titus joined First Community Bank as executive vice president.
He has spent the past 19 years in executive-level credit positions.
“It is imperative for every company to continually identify and obtain high-quality people of talent, commitment and character,” said First Community Bank President and Chief Executive Officer Kathy Pinkard. “In David, we all know we have found exactly that. His reputation in this community is solid gold, and we feel extremely fortunate to have him join us and add to the overall expertise of our executive management team.”
Said Mr. Titus, “As a competitor, I developed an admiration and respect for the accomplishments of First Community Bank. I am delighted to now join their team and return to a locally owned community bank to continue my career. I look forward to contributing to the bank and to the community we serve.”
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The Federal Insurance Deposit Corp. is running out of money.
Earlier this year it announced a special assessment of five basis points for all banks to shore up funds to help out distressed banks.
Now the FDIC is looking at having banks prepay insurance premiums for the next three years, which would bring between $36 billion and $54 billion to the fund.
Dennis Kelley, the chief financial officer at Summit State Bank in Santa Rosa, said the rule most likely will be approved.
“The reason will be to recapitalize the insurance fund now without borrowing from the treasury,” he said.
The FDIC has a line of credit with the Treasury, but it prefers not to touch it.
Other options would be to have another special assessment, something FDIC Director Shelia Bair toyed with earlier in the year.
Prepaying, however, would be easier on banks, particularly distressed banks.
“It looks like a very good way to go,” said Mr. Kelley. “The fund will start building itself.”
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Redwood Trust Inc. announced Scott Chisholm joined the company as a managing director to lead Redwood's commercial mortgage debt investment activities.
"Scott's leadership abilities, experience, relationships and his seasoned credit perspective in commercial mortgage debt investment will enable Redwood to judiciously expand its commercial business at a time in which there are increasingly attractive investment opportunities," said Brett Nicholas, Redwood's chief investment officer and co-chief operating officer.
Mr. Chisholm, formerly a managing director at Prudential Mortgage Capital Co., has held various positions over the past 20 years in the commercial real estate finance industry at several leading financial institutions. At Prudential, he managed the New York City office and was responsible for commercial loan originations across all of Prudential's capital sources
Redwood Trust Inc. invests in, finances and manages residential and commercial real estate loans and asset-backed securities backed by real estate loans. Redwood is headquartered in Mill Valley.
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Submit items for this column to Jenna V. Loceff at jloceff@busjrnl.com, 707-521-4259 or fax 707-521-5292.
