Headline: Small East Bay bank to sell stock to fund self-rescue plan

Publication: San Francisco Business Times

Dateline: May 3rd, 2004

Community Bank of the Bay is taking a big step in mending itself with a proposed $5 million stock offering.

"The funds will allow us to meet regulatory requirements and to add new lending programs," said Brian Garrett, president and CEO of the bank.

Proceeds will be used to expand the bank's lending operations, which will include adding loans involving the Small Business Administration, real estate construction and residential rehabilitation projects.

The Oakland bank received approval from the California Department of Financial Institutions, and will soon begin mailing offering circulars for the long-anticipated stock sale. Investments will be accepted only from so-called accredited investors, generally defined by the Internal Revenue Service as having a net worth of at least $1 million or at least $200,000 in annual income. The bank will require a minimum investment of $25,000 but may accept smaller investments.

The bank was founded in 1996 as the first community development bank in California to target underserved communities. The bank suffered losses and regulatory action prompted management and board changes, including bringing Garrett, a long-time Bay Area banker, on board.

Garrett has made several changes to both staff and strategy since joining the bank in September 2002.

"We're looking to make good loans," Garrett said. "As they say in the mutual fund business, past performance is no indication of future results."

Payment firm opens S.F. office
Paymentech opened an office in the heart of San Francisco's financial district to meet face-to-face with more of its clients in the region.

The electronic payments processor company, jointly owned by Bank One Corp. and First Data Corp., employs nine at its new office at 350 California St.

"We already have hundreds of merchants on the West Coast, and we continue to see tremendous growth," said spokeswoman Laura Lambeth in Dallas.

Last year, Paymentech handled 7 billion transactions, accounting for $162 billion in sales volume paid for via credit, debit and other types of payment cards.

Mark Calvey can be reached at (415) 288-4950 or mcalvey@bizjournals.com.