Notes from the CEO

California Banking and Recovery

Recently, there was some good news released regarding California banks and their effect on the state’s economy. Authored by economists Chris Thornberg and Jordan Levine of Beacon Economics, the study behind the 2012 California Banking & Economic Update found that, in 2011, increased lending by California-based banks did much to help move the state’s economy in the right direction. The authors state that California’s economic recovery is outpacing the national recovery and that is due in part to California-based banks’ expanded lending during that year.  According to the study, lending is up 8 percent from the all-time low in 2010.  While eight percent might not sound like a very large gain, there are 240 banks that are based in California, and eight percent across 240 lending institutions adds up to quite a boost in dollars made available to businesses  last year.

This is news all California bankers can be proud of. We at Five Star Bank are especially proud because much of that increased lending came from community banks. Local institutions lending to people is at the core of a community bank’s role. I like to think the role of a community bank also includes a kind of community stewardship, that it’s our role to do right by those we share a community with. I believe we do that quite well here at Five Star Bank. I look forward to the day when reports like these are still good news but less surprising.

Read the full report here.

James E. Beckwith
President & CEO Five Star Bank
jbeckwith@fivestarbank.com

South Placer

6810 Five Star Blvd.
Suite 100
Rocklin, CA 95677
916.626.5000
rocklin@fivestarbank.com

Rancho Cordova

3100 Zinfandel Drive
Suite 100
Rancho Cordova, CA 95670
916.851.5440
rancho@fivestarbank.com

Sacramento

2400 Del Paso Road
Suite 100
Sacramento, CA 95834
916.640.1500
natomas@fivestarbank.com

Elk Grove

9355 E. Stockton Blvd.
Suite 160
Elk Grove, CA 95624
916.714.2444
elkgrove@fivestarbank.com

North Valley

358 Hartnell Avenue
Suite B
Redding, CA 96002
530.223.6652
redding@fivestarbank.com

Chico

426 Broadway
Suite 203
Chico, CA 95928
530.592.0470
chico@fivestarbank.com