Fresno First Bank is changing its name and searching for expansion opportunities just days after the collapse of Silicon Valley Bank.
Meanwhile, the implosion of the Bay Area bank is also having a spillover effect on Fresno’s local banks as their stock prices face a tumultuous week.
The big picture: Fresno First Bank is changing its name to FFB Bank, a move that has been in the works for the last six months to make the bank more relevant in other markets outside of the Central Valley.
- Although the bank announced the change Monday, CEO Steve Miller clarified that the announcement had already been planned before Silicon Valley Bank collapsed.
By the numbers: In light of Silicon Valley Bank’s collapse, FFB Bank revealed its financial information to show its stability in the face of uncertainty.
- Total deposits grew 4.2 percent from the beginning of the year and cash-on-hand and cash equivalents total $57.7 million and represent 4.5 percent of total assets.
State of play: Monday proved to be a volatile day for local banks as the stock market reacted to Silicon Valley bank, yet the local banks took steps in the right direction on Tuesday.
- Central Valley Community Bank experienced a 12.6 percent drop on Monday, opening at $23.32 and closing at $20.39. The bank also saw a massive increase in transactions with a volume of over 150,000 trades compared to around 25,000 trades for the same time last week. CVCB’s stock price stabilized and rose 1.67 percent on Tuesday.
- United Security Bank dropped 7.3 percent on Monday down to a closing price of $6.47, but it bounced back a bit on Tuesday to the tune of a 3.55 percent gain.
- Citizens Business Bank’s parent company, CVB Financial, witnessed a 10.3 percent drop on Monday and also experienced a major increase in trading volume, with more than five million transactions undertaken on Monday. The bank’s previous high in stock trading volume in March was at 1.2 million transactions. Tuesday’s stock performance bounced back by 6.3 percent.
- FFB Bank experienced a 3.7 percent drop on Monday in its stock price, but gained 3.84 percent on Tuesday to return to the $60 price that it opened with on Monday.
What they’re saying: “Changing the brand and making it more universal is the logical, necessary step for us to take,” FFB’s Miller said in a statement. “We have an opportunity to grow in Fresno while also expanding beyond California’s Central Valley. We think that this is the right thing to do for our current and future customers, our shareholders and for our people.”