Monday Oct 24 2011
CEO Lund steps down from Community 1st Bank
By: Gloria Young, Journal Staff Writer
Interim successor is board chairman Robert Haydon
Community 1st Bank’s CEO Mark Lund has stepped down and Chairman of the Board Robert Haydon has been named as the interim successor. “He left for both personal and professional reasons,” Haydon said Monday. “On the professional side, his career goals and what he had hoped to with the bank have been achieved. On the personal side, he needed some time to attend to the needs of a family member. Things are moving positively in that direction.” Haydon said he does not plan policy changes and that part of his job will be to find and recruit a full-time CEO. “There are many opportunities,” he said. “Some of them will require changes and most of that is not policy, but more of commitment and new energy that I hope to bring to the team.” Along with the announcement of the change in leadership, the bank’s quarterly results issued Monday reported a loss of $905,000 for the July-September period. “That’s basically a write-down of some loans,” Chief Financial Officer James Kim said. “There are no new things here. We’ve had some loans on the books and we’re aggressively trying to put them behind us.” The loss represents commercial real estate loans in the area and are a reflection of what is happening in the economy, he explained. “Everyone’s home and property has been pushed down in value as foreclosures occur and people sell properties,” Haydon said. “We have a requirement to regularly review properties and have them appraised. As new appraisals come in, we have to adjust values to come into today’s market. “ Foreclosed property represents $128,000 of the total. The rest is on actual loans, Kim said. Haydon and Kim emphasized that the bank remains on solid ground. “We have capital ratios well in excess of FDIC’s guidelines for institutions,” Kim said. “They’re well in excess — sometimes triple the regulatory guidelines. … On the liquidity side, we have a tremendous amount of liquidity. More than 50 percent of our deposits are liquid assets. That’s as strong as it gets. We’re challenged to grow and serve our community. We’re not concerned about failure.” The challenge is to use the capital to grow and to leverage the capital, Haydon said. The quarterly report lists $167.6 million in total assets for the bank, an increase of $13.6 million, or 8.8 percent, from September 2010. Community 1st history Lund served in the banking industry for 38 years. Prior to heading Community 1st, he was president and CEO of Five Star Bank in Rocklin and served on its board of directors from December 2000 to 2004. He was executive vice president and chief credit officer of Placer Sierra Bank from 1996 to 2000. From 1983 to 1996 he was executive vice president and chief credit officer for The Bank of Commerce, per previous Journal reporting. Haydon has more than 36 years in banking. He was previously associated with Placer Sierra Bank and its predecessor Placer Savings and Loan Association from 1967 to 2003 and served as president and CEO from 2004 to 2001, per earlier Journal reports. Haydon’s return to an office in the Downtown Auburn building also marks a return to the same building he worked in during his years with Placer Sierra. “On a personal level it’s very exciting,” Haydon said about being back at work. “I would say that having been retired for 10 years and to step back into this role at this time in my life is a very surprising and unique opportunity. One of the things I missed most was working with our customers and our staff and the welcome I received today just warms my heart and makes me happy to be part of this.” Customer Jeff Kauffman, a Lake of the Pines resident, said he is not acquainted with the bank’s leadership, but likes banking at Community 1st. “I wanted to be with a smaller bank where they pay more attention to customers and treat them better,” said Kauffman, who added that he switched to Community 1st about a year ago. Community 1st established its Roseville office in February 2006. The first Auburn branch opened in August 2006 on Kemper Road. In December 2008, the bank opened its Downtown Auburn branch and relocated administrative offices there from Roseville. In November 2010, it closed the Kemper Road location, consolidating the two branches into the Downtown site. In August the bank completed an offering of its common stock with gross proceeds of $7.4 million by issuing 3.7 million shares, according to a press release. Reach Gloria Young at gloriay @goldcountrymedia.com.