Temecula Valley Bank set to close San Rafael office

SANTA ROSA, April 13, 2009 – Temecula Valley Bank is closing its loan production office in San Rafael June 30 due to attempts to reduce concentrations in construction lending, according to the Temecula Valley Bancorp Inc. Chief Executive Officer Frank Basirico.

Based on where the marketplace is, he said the bank is keeping representation only where it has branches.

Temecula Valley Bank recently went through some changes with the retirement on March 23 of Richard Wright, director of Temecula Valley Bancorp Inc. and Temecula Valley Bank, and the subsequent resignation on March 30 of George Cossolias in the same position.

Feb. 19, Temecula Valley Bank entered into an agreement with the Federal Deposit Insurance Corp. and the California Department of Financial Institutions to adopt an action program designed to further enhance the strength and stability of its operations. The company also announced at that time that it entered into an agreement with the Federal Reserve Bank of San Francisco intended to augment the company’s ability to act as a source of strength to the bank.

“It is good for our bank,” Mr. Basirico said.

This is also good news for Atlantic Pacific Bank, headquartered in Santa Rosa. Charles Hall, president and CEO of Atlantic, announced today the bank has brought a new member to its team in the real estate sector. Larry Tidwell, who most recently was in charge of the real estate industries group at Temecula, will join Atlantic Pacific as executive vice president in charge of its real estate industries group.

“Larry and his team have done an exemplary job,” said Mr. Basirico. “We know Charlie Hall; it is a friendly transaction.”

Mr. Tidwell has been in the banking industry for more than 35 years.

“Larry and I previously worked together at Business Bank of California, where he ran a very successful construction lending division," said Mr. Hall. "He is a seasoned banker and a proven lender. Larry will contribute greatly to the bank’s ongoing success. I am so very pleased to be working with him once again.”

Mr. Tidwell will work out of the bank’s headquarters and will focus on construction and real estate lending.

Jeanne Reade, the bank’s executive vice president and chief credit officer said, “While many banks have substantially reduced their real estate lending activities, we continue to be an active participant in this area of the market. Larry and I worked together at Business Bank of California for nearly twelve years. Larry has a great understanding of the real estate industry and has always provided our customers with outstanding service.”

Atlantic Pacific Bank is the newest independent business bank headquartered in Sonoma County.