Presidio Bank, a San Francisco-based bank, is planning to open a new office in downtown Palo Alto, California in the first quarter of 2010, to serve businesses in the Mid-Peninsula market.
In order to fund the expansion to Palo Alto and growth in its four existing offices, Presidio also announced that it has just received $10.8m in additional capital from the issuance of non-voting preferred stock to the US Treasury as part of its capital purchase program (CPP).
Steve Heitel, president and CEO of Presidio Bank, is leading the bank’s expansion efforts on the Peninsula. Mr Heitel, formerly president and CEO of Mid-Peninsula Bank in Palo Alto, has already hired Sarah Lewis and Luke Farley, as relationship mangers for the new office. In addition, David Kalkbrenner, former CEO of Greater Bay Bancorp, is working with Presidio Bank on this expansion and will serve as chairman of the bank’s Peninsula advisory board.
Mr Heitel said: “At Presidio, our focus has always been to provide loans that create economic value and jobs in the Bay area. Our projections indicate that we can leverage these new funds and forge a potential impact of more than $100m in new loans to qualified businesses and clients.”
James Woolwine, chairman of Presidio Bank, said: “Our approval for CPP funding provides further affirmation of our financial strength, and will allow us to bring our products and services to more clients and communities, including to new clients on the Peninsula.
“This capital provides additional assurance that we can continue to work toward supporting our present and prospective borrowers in their own business activities and can provide our depositors with an additional capital cushion without diluting our shareholders.
“These funds will result in Presidio Bank having one of the highest capital ratios within our banking peer group. Combined with our strong credit quality metrics, this will position the bank for success in the current economic climate and into the future.”
