SoCal’s Top Banks and Credit Unions Focus on Community in Wake of Wildfires

The banking business has been impacted by higher interest rates, new technology and consolidation within the industry, but the wildfires that scorched Southern California in January have had an unprecedented impact on the lives of residents, employees and clients. Many banks and other financial institutions responded by creating funds or donating to local organizations that support fire relief in the midst of ongoing commercial banking operations.

City National Bank, a subsidiary of Royal Bank of Canada, is the largest bank headquartered in Southern California. It committed $3 million to nonprofits and foundations supporting wildfire relief, including the American Red Cross, Entertainment Industry Foundation and United Way Los Angeles, among others.

“As the largest bank headquartered in Los Angeles, this tragedy is deeply personal for us. Our clients, colleagues and communities are suffering unimaginable devastation,” said Howard Hammond, chief executive and president of City National Bank, in a statement. “We know we have an important role to play in helping address both the immediate needs in the wake of these fires as well as in the long-term work to rebuild.”

City National Bank has also expanded its local presence recently by opening a new branch in Whittier in one of a collection of buildings that has been redeveloped at the former site of the Fred C. Nelles Youth Correctional Facility. The facility shuttered in 2004 and was acquired by Brookfield Residential in 2019, which repositioned it into a mixed-use project. It is adjacent to 500 new homes and 200 apartments, along with restaurants and other retail spanning 16 acres.

Banc of California, which completed a merger with PacWest Bancorp in 2023, created a charitable fund and committed $1 million to local communities affected by the wildfires. The bank will establish an advisory board comprised of business and civic leaders to ensure that funds are directed to those impacted by the fires. “We are creating this fund in part because of our unique position in the community and because of the significant outpouring of inquiries we have received from those across our country wanting to help Los Angeles,” said Jared Wolff, chief executive of Banc of California, in a statement.

Pasadena-based East West Bank contributed $250,000 through its East West Bank Foundation to the Pasadena Community Foundation’s Eaton Fire Fund. It reported minimal direct losses from the fires and has made support of the small number of customers and employees who were affected a priority. For customers, it activated a “Skip-a-Pay” program, which has been used in past disasters that allows homeowners to delay mortgage payments. Employees created a relief fund, and the bank matched their contributions to help them through this difficult time.

“As a long-time resident, I’ve witnessed the resilience and spirit of our Pasadena community in the face of challenges,” said Dominic Ng, chairman and chief executive of East West Bank, in a statement.

East West Bank contributed an additional $100,000 to the YMCA of Metropolitan Los Angeles. It has ties to the arts community and reached out to museums, foundations and arts supporters to help establish the LA Arts Community Fire Relief Fund, which received pledges of $12 million.

Other regional banks that announced contributions include CBTC Bank, which contributed $300,000 to the Los Angeles County Economic Development Corp.’s small business recovery efforts. Preferred Bank donated $250,000 split among Tzu Chi USA, Pasadena Community Foundation, Alliance for a Better Community and the Los Angeles Fire Department Foundation. It also matched employee donations for wildfire relief above its corporate contribution. Bank of Hope contributed $100,000 to United Way of Greater Los Angeles Wildfire Relief Fund, California Bank & Trust spread a $100,000 donation across several organizations and Western Alliance Bancorp made a $100,000 contribution to the American Red Cross.

Credit unions, which typically have membership requirements that closely align to a geographic region or a large local employer, have also made significant contributions towards wildfire relief.

Tustin-based SchoolsFirst Federal Credit Union, the largest credit union headquartered in Southern California with $31.9 billion in assets, announced donations of more than $220,000 to local organizations. The credit union identified more than 20,000 members who may have been impacted by the fires. It has provided goodwill funds, emergency relief personal loans, skips or deferments on loan and credit card payments, waived fees and other lending assistance.

“Unfortunately, we have been with our members through these types of devastating situations too many times. Through these experiences, we have learned that the best way to be there for them is by working with each member one-on-one to offer support tailored to their unique needs,” said Bill Cheney, chief executive officer of SchoolsFirst FCU, in a statement.

Executive Moves

Los Angeles-based RBB Bancorp, the parent company of Royal Business Bank, announced a change in the company’s leadership, effective May 22. Johnny Lee, who previously served as president and chief banking officer, will become chief executive when current chief executive David Morris retires. He previously worked at Pasadena-based East West Bank from 2021 to 2023 before joining Royal Business Bank and has more than 35 years of banking experience. Royal Business Bank operates locations in Southern California, New York City, Chicago and Honolulu.

Farmers Insurance Federal Credit Union, a $1.4-billion credit union headquartered in Burbank, named Mirella Reznic as chief executive and president, effective February 3. Prior chief executive Laura Campbell retired.

“Mirella’s selection comes after a rigorous and thoughtful process of assessing and interviewing numerous, highly qualified and impressive internal and external candidates,” said Rudy Trevino, Farmers Insurance FCU board chairman, in a statement.