March 1, 1988 |
When Don Kenneth Gray II dressed up as Santa Claus and handed out Christmas gifts at Valley State Bank in December, 1986, it was not the first time that he had pretended to be somebody else, according to the U.S. attorney's office and the FBI. For the last three months of 1986, Gray used the alias Daniel Ryan Hamilton and worked as a data processing clerk at the Encino bank. A quiet and hard-working employee, he was very popular.
October 27, 1987 |
Last New Year's Eve, Jules Huppert was sitting alone in his Encino office. Three years had passed since he had taken over as president of Valley State Bank, and there was little to celebrate. Valley State had charged off $3.7 million in bad loans over the past three years, a high figure for a bank with only $100 million in assets. The bank was also in trouble with the Federal Deposit Insurance Corp. for failing to disclose certain fees it charged borrowers.
September 30, 1987 |
Valley State Bank's five offices reopened Tuesday as part of Capital Bank of California after Encino-based Valley State was closed by the California state Banking Department on Monday because loan and operating losses had exhausted its capital. Capital Bank of California, based in Century City, has purchased $46.7 million in assets of the failed bank from the Federal Deposit Insurance Corp. The FDIC provided Capital with about $29 million in financial assistance in the acquisition.
May 26, 1987 |
In the first quarter, Citicorp, the nation's largest bank, had to wrestle with the problem of bad loans from Brazil and ended up taking a $2.5-billion loss. In the San Fernando Valley area, local banks dealt with more indigenous problems, such as taking a $105,000 loss on a foreclosed beachfront home and trying to out-hustle the Big Three auto makers in order to grab more car loans.
May 12, 1987 |
Valley State Bank, an Encino financial institution buffeted by loan losses and a $600,000 embezzlement, has agreed to be acquired by Capital Bank of California in a stock transaction not likely to exceed $3 million, Capital chairman Abel Holtz said. Capital, a unit of Miami-based Capital Bancorp, is based in Century City. Valley State's five offices are all in the San Fernando Valley, and, Holtz said, the acquisition offers an opportunity to expand into the Valley market.