Former Opus chief is one step nearer to opening California de novo

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Stephen Gordon is one step nearer to returning to banking.

A Gordon-led group has acquired approval from California’s Division of Monetary Safety and Innovation to kind Genesis Financial institution in Newport Seaside. The Federal Deposit Insurance coverage Corp. has given the organizers conditional approval for deposit insurance coverage.

Conditional approval normally requires organizers to lift a minimal quantity of capital earlier than opening. Whereas the FDIC’s order wasn’t instantly out there, Gordon’s group had focused $53 million in preliminary capital.

Gordon submitted an initial application with the FDIC in June.

Former Opus CEO Stephen Gordon is looking to open Genesis Bank.

Former Opus CEO Stephen Gordon is trying to open Genesis Financial institution.

Genesis Financial institution would carry collectively many former executives of Opus Financial institution, which Gordon recapitalized in late 2010.

Jennifer Simmons, who was Opus’ chief working officer, and Brian Fitzmaurice, who served as chief credit score officer, can have the identical roles at Genesis. William Han, a former deputy chief monetary officer at Opus, shall be CFO, whereas Andres Gallardo, Opus’ deputy common counsel, wll function chief authorized and danger officer on the proposed financial institution.

“We get pleasure from having labored extensively collectively as a staff prior to now,” Gordon mentioned in a Wednesday press launch. “I’m assured that our numerous backgrounds, collective experiences, and broad abilities shall be a aggressive benefit as we embrace this distinctive alternative to construct a brand new financial institution.”

Efforts to succeed in Gordon to debate progress elevating capital and a proposed opening date have been unsuccessful.

Genesis intends to concentrate on small enterprise and business actual property lending in the identical Southern California footprint the place Opus operated.

Opus, which grew rapidly after Gordon’s arrival, bumped into credit score high quality points in 2016 that hampered profitability previous to his abrupt departure in November 2018. The financial institution was sold to the $19.7 billion-asset Pacific Premier Bancorp in Irvine, Calif., final yr.

Genesis can be Gordon’s second California de novo. He based Industrial Capital Bancorp in Irvine in 1998 earlier than promoting it eight years later to Washington Mutual for slightly below $1 billion.