‘When you need a loan and a new source of money
You can always go Downtown….’

—With apologies to Petula Clark

Jeff Stone is senior vice president for member business services at North Island Credit Union, which has developed a commercial lending niche that includes Downtown real estate. (photo/lambertphoto.com)

Like eyeglasses, white socks with black shoes and other things nerdy, the Downtown bank has been out so long, it’s in again. Sure, the Downtown bank appeared headed for Nostalgiaville when Home Fed and the like disappeared. More recently, ATMs and online banking were supposed to have taken the place of tellers, loan officers and pens on a string.

Instead, not only did venerable institutions like Union Bank keep its Downtown offices through thick and thin, but de novos such as Security Business Bank put down roots in the 92101. Torrey Pines Bank opened Downtown first before moving its administrative headquarters out to Carmel Valley. And San Diego Trust Bank, well, technically it’s on Bankers Hill, but its lenders can coast to Downtown clients’ offices without taking their cars out of neutral.

“Not a day goes by that I’m not at lunch with a client and we see someone across the room and my client says I want to introduce you to Mike and next thing you know we’re setting up a meeting or transacting business,” says Mike Perry, president of San Diego Trust Bank. “Downtown is the hub for the legal profession, CPAs, property managers and money managers. We work with them not only on their businesses, but on their clients’ businesses, so there’s a natural synergy.”

San Diego Trust has been involved in several Downtown development and condo conversion projects, Perry says. “We bank some of the larger law firms, and several CPAs, and they have interests throughout the county. Typically, we wind up going to visit them wherever they are.”

One of the county’s de novo banks, San Diego Trust has grown by a factor of four to about $50 million in assets since opening last Oct. 30. Perry says he’s looking for another office but its location is dependent on finding the right banker to head it up and good bankers are in short supply these days.

For 2-year-old Security Business Bank, Downtown is not only the center of San Diego’s business energy but serves as a geographical hub for a clientele spread throughout the county.

“Five minutes to Mission Valley, you can get on the 94 to East County, close to Chula Vista and South County. The business we get Downtown is a bonus,” says President Paul Rodeno. Security Business’ Downtown clientele includes the Downtown Partnership, where Rodeno sits on the board. Other clients include lawyers, engineers, service providers and non-profits.

Although 40 percent of the bank’s business is in North County, as opposed to about 15 percent Downtown, Rodeno says it’s important to him to be headquartered in the cultural and civic center of San Diego.

Paul Rodeno, president of Security Business Bank, says Downtown San Diego serves as a geographical hub for a clientele spread throughout the county. (photo/lambertphoto.com)

“It’s part of the theme of being a San Diego bank,” he says.

From a $15 million stake 24 months ago, Security Business has grown more than fivefold to about $78 million in assets. Rodeno says the bank’s growth is ahead of expectations, and more due to hard work than the economy. “The economy is good but not as robust as we thought it would be.”

This month, the bank will open its first branch in Del Mar Heights. “The 5-805 merge is a barrier,” Rodeno says. “A lot of clients don’t like to go below that. Plus, it’s easier to visit them if we’re out there. The energy Downtown is a bonus from an employer’s standpoint. Some people want to be down here to be involved in a core area in a vibrant community that’s a lot of fun as well.”

San Diego Metropolitan Credit Union CEO Stuart Camblin was Downtown before it was cool. His banking career started in 1965 in a Bank of America office at Fifth Avenue and Market Street.

“I remember when One Harbor Drive went up,” Camblin says. “I made loans to residents and it was in bankruptcy and people thought this is not going to go.” Of course, this was before the median price of a home anywhere in San Diego passed the $580,000 mark.

A $300 million lender, SDMCU started out serving Downtown’s municipal employees, but its charter now includes membership for anyone who works or lives in the county. Camblin says the majority of his Downtown customers are still municipal employees.

“I remember when ATMs first came out,” he says. “This was going to be the great savings and you wouldn’t need branches. But customers want choices, including being able to come in and talk to a person, so we’re seeing a resurgence of branches and we want to have the physical contact, to get to know what the customers’ financial needs are.”

Another credit union with a Downtown presence in the NBC tower adjacent to Horton Plaza is the $1.5 billion North Island Credit Union. North Island has developed a commercial lending niche, including Downtown real estate, offices, and single room occupancy (SRO) hotels, some of which are situated over retail development. Already active in SBA 504 (real estate) lending, the CU recently has been approved to handle 7(a) loans, says Jeff Stone, senior vice president for member business services.

Among its member base, which has been expanded to workers and residents of San Diego County, home equity loans are the latest trend, leveraging the equity produced by the real estate run-up.