Bank says being careful key to its success

As some banks have been hit hard, one bank based out of Newport Beach has been doing well. In its first six months, California Republic Bank has acquired more than $125 million in assets. The Daily Pilot met with two of the men who have helped this bank thrive. Jon Wilcox, a Tustin resident, is the president and chief operating officer of the bank, and John DeCero, an Irvine resident, is the vice chairman of the board.

With all the turmoil in the banking industry, what makes you guys different from anybody else?

Wilcox: First of all, when we started we didn’t have any bad loans. We don’t have any sub-prime loans; we don’t have any home loans. ... We started with a clean portfolio. On top of that reason, with as much capital as we have, with as much liquidity we have, we are a very safe-and-sound bank. So with a lot of turmoil in the markets, people feel comfortable and safe here.

DeCero: We also don’t have any risky investments; we don’t have any CDOs (collateralized debt obligations). Not only did we start with a clean slate of loans, but we got a clean slate of investments. The majority of our liquidity is invested in federal funds. We are pretty basic. There are no fancy investments. We take in depositors’ money and we make safe loans to individuals who have a lot of wherewithal.

If playing it, as you say, “with nothing fancy” can be successful, why is it that you haven’t been tempted as others have to make those riskier loans and those kind of exotic types of ventures?

Wilcox: The biggest reason is it’s our own money. These are people who have invested in the bank: They are 300 friends and families. If you look at what management and the board put in, between $10 and $12 million of our own money, we are more careful because it is our own money. The only way to screw up a bank is doing bad loans. And we don’t want to screw it up because this is for a long-term play because it’s our cash.

In a previous statement by your chief executive, he said the bank is taking advantage of the opportunities presented right now. What are those? Why isn’t everyone seizing on those same opportunities for success?