Pan American Bank

A Thanksgiving Wish

2011-11-27T15:19:00.000-08:00

Dear Friends,

I hope your Thanksgiving was a great one and that you were able to spend it with family and friends. During this time of year it is common for us to reflect on and appreciate what we have. I am personally grateful for having a job I absolutely love, a family that I could not live without and that supports my every move, and a staff and board of directors that believes that the activities of Pan American Bank are not just part of a job, but part of a movement.

I recently read Tribes by Seth Godin. In his book there is a passage that could have easily come out of my mouth, "It took me a long time to figure out why I was so happy to be checking my e-mail in the middle of the night. It had to do with passion. Other than sleeping, there was nothing I'd rather have been doing in that moment - because I'm lucky enough to have a job where I get to make change happen." As President and CEO of Pan American Bank, I truly believe that Pan American Bank can make change happen.

I have attached the latest newsletter from Bienvenidos CEO Ritchie Geisel. Those of you that live and/or work in East Los Angeles are likely very familiar with Bienvenidos. Bienvenidos is a top tier nonprofit that serves East Los Angeles. I am proud to say that I am not only a fan of Bienvenidos, I am also a Director.

I am attaching Ritchie's recent newsletter because it succintly speaks to the challenges of East Los Angeles as well as the many efforts currently being undertaken to move East Los Angeles out of the "Forsaken Five Percent," a term used to describe communities such as East Los Angeles in the "2011 A Portrait of California." I ask you to read it and share it with others that may have an interest in the empowerment and transformation of East Los Angeles.

As Ritchie states in his update, "it would be easy to become discouraged in the current economic and political environment." Ritchie and I, however, are hopeful that we do not become discouraged and that we find ways to continue to support the activities of Bienvenidos and the many other wonderful organizations that serve the East Los Angeles community. His update speaks to the many collaborations currently focused on boosting the socioeconomic status of East Los Angeles.

Again, I hope you had an amazing Thanksgiving. I definitely did. If you would like to keep informed on the work of Bienvenidos and the efforts of the community to move East Los Angeles out of the Forsaken Five Percent, please send your email toinfo@bienvenidos.org to join the Bienvenidos mailing list.

Best,

Jesse Torres

President and CEO

Pan American Bank

East Los Angeles, CA 90063

Edward James Olmos - The Economic Engine That Will Stabilize Latino Communities

2010-09-10T01:20:00.000-07:00

If you are Latino or have been around for a while it is a good chance that you recognize the name of actor Edward James Olmos. Having made his career with movies such as Zoot Suit and Stand and Deliver, Edward James Olmos became a major force within that Hollywood ethnic click beginning in the early 80's and continues to carry a wallet full of cachet.

Ok, sure, Edward James Olmos had some great roles but what does that have to do with economic stabilization? Back in the 80s - nothing. Today, everything.

About two months ago I was having a discussion with Armando Sanchez, the Executive Director of LatinoGraduate.net and one of East L.A.'s resident visionaries. Armando and I were talking and brainstorming like we usually do on Thursday afternoons before he tapes his weekly global webcasts. The challenge he put up was how we could help the burgeoning cadre of Latino authors. While some authors such as Alisa Valdes-Rodriguez have "made it," others, most others, are still having a tough time getting into the literary mainstream.

I suggested that the Bank host a fundraiser to help Edward James Olmos' nonprofit organization, Latino Literacy Now! and its Latino Book & Family Festival. The LBFF was going to be returning to Cal State L.A. in October and needed funds to make it happen. So on August 7, 2010, we did it. And it was awesome!

About a week after the event I was sitting and thinking about Pan American Bank's mission of empowerment and transformation....and then it hit me! A key to economic transformation of communities such as East Los Angeles is not dependent on hand outs or tax breaks or any of the many political promises made lately. And the key is also not financial literacy - though that is one key.

Instead, I realized that if I really wanted to do my part to elevate the local economy over the long-term, I needed to start by getting those Latino authors back to Pan American Bank. But this time, instead of reading to funders and financial supporters, I needed them reading to the most cash-strapped members of our community - the kids.

The idea goes something like this:

"Parents (Adults) That Read to Kids = Kids That Love to Read = Good Readers = Good Students = High School Graduates = College Graduates = Latinos With Good Jobs = Latinos With Financial Power = Latinos With Political Power = Latinos Breaking the Stereotype = A New Chapter"

I know, I know, this is not much of an epiphany. People have been pushing reading for decades. The difference for me was the economic angle.

So by now you're asking, how does this related to Edward James Olmos? Simple. If the formula above is correct and parents reading to children = economic empowerment then a good way to get parents to read to their kids in East Los Angeles is by putting a cadre of authors in front of them with similar looks and backgrounds. In other words, get the Latino authors to inspire the Latino children and their Latino parents. And that's where Edward James Olmos' Latino Literacy Now! organization come in. The organization is a promotor of Latino authors. Latino authors beget Latino readers and Latino readers beget Latino success stories.

After thinking through the process I called the organization's promoter and author Reyna Grande. She loved the idea. Within a week she recruited eight authors, and it was on!

On September 11, 2010, we launch week one of the series. Before even launching the first session, we already have nearly another eight authors excited to work with the kids - so look for round 2.

I am so excited for Pan American Bank, the authors and the families. I really do believe that through this series of readings we will be able to change lives and improve the economic footing of the community. The greater the number of college graduates in the community the better its economic prospects and the easier it becomes to bootstrap this community into the middle class.

It is not going to happen overnight but it will happen.

With Election Day Coming...

2010-06-06T08:56:00.000-07:00

Well, it's been a while since I last checked in. But I'm back and happy to be here.

With the California state primary election only a couple days away (June 8, 2010) I thought I would dedicate this post to the California Latino electorate. This topic is especially appropriate given all the activity taking place in Arizona relative to SB1070 and the fact that the Bank serves the Latino (mostly Mexican-American) niche. I was curious what role Latino voters would have on the outcomes in California. I was both impressed and depressed by the actions of the Latino electorate.

My research is based on the 2010 Latino Electoral Profile Report issued by the National Association of Latino Elected and Appointed Officials (NALEO) Educational Fund.

My first question was to determine the Party of Choice of Latino voters. While many believe that Latinos are mostly registered democrats, the fact is that Latinos back both sides of the aisle. Yes, the percentage of Latino democrats outnumbers Latino republicans by a ratio of three-to-one. However, the percentage of Latino republicans is still substantive. According to the NALEO report, registered Latinos are 58% democrat, 19% republican and the remainder decline to state or have another party affiliation.

Interestingly, non-Latino registered voters are also more likely to be democrats, though the differences are not nearly as wide. Among non-Latino registered voters, 41% are registered democrats and 34% are registered republicans.

Having seen the percentages, my next question was the impact that registered Latinos had on elections. I found some interesting data. According to the NALEO report, there are 16.5 million registered voters in California of which 19% are registered Latino voters. In Fresno, San Bernardino, Los Angeles and Sacramento counties, Latino voters comprise 30%, 28%, 27% and 23%, respectively, of total registered voters. That is a powerful segment in those communities. In other counties the percentages are fairly small.

But of course, as with anything else, the proof is in the pudding. And with any voting block, it doesn't matter if you are registered to vote, it only matters if you vote. And there is the problem. According to the report, while Latinos represent a significant portion of voters - especially among those four counties noted above, Latinos are significantly more likely to skip the polls than their non-Latino counterparts.

Election analysts used terms such as High Propensity, Mid Propensity and Low Propensity to label groups' likelihood to vote on election day. According to the data, 55% of registered Latino voters are likely to skip the polls compared to only 41% of non-Latino registered voters. And only 27% are likely to make it to the polls, rain or shine, compared to 42% of non-Latino registered voters.

The NALEO report contained much more information. I encourage anyone with an interest in this segment to download it.

At the end of the day, it seems that the Latino electorate is well positioned to have an impact on the 2010 elections. The key is to get the voters to the poll. Hmmmm, any ideas?

Latino or non-Latino, get to the polls this week. Assert your right to vote. Make yourself count!

Census Day 2010

2010-03-01T23:12:00.000-08:00

Back on November 22, 2009 I posted an entry ("Community Banks and the 2010 Census") about the importance of the Census for communities such as East Los Angeles and Santa Ana - the Bank's two service areas. Since Census Day 2010 is one month away (April 1, 2010) I thought I would provide an update to my earlier commentary.

As I stated back in November, the Census count determines how approximately $400 billion is disbursed across a multitude of federal programs. The larger the population, the larger the portion of the pot. As such, communities benefit by an accurate count and are penalized by an undercount. The City of Los Angeles estimated that it lost out on roughly $20 million per year as a result of the 2000 Census undercount.

In the January/February issue of Hispanic Business Magazine Rob Kuznia addressed the challenges faced in obtaining an accurate census count ("Census Budget Bigger Than Ever, But Some Officials Predict a Miscount"). According to Mr. Kuznia, "at about $15 billion, the outlay for the once-a-decade event is nearly three times the amount of the Census budget in 2000. Still, prominent experts predict that the 2010 Census will overlook many more people than the one in 2000, which undercounted the U.S. population by millions." Yikes! Three times the budget but fewer counted? What's up with that?

Back in November I stated that "as a local corporate citizen it is in our best interest to maximize investment dollars in our community. Investments boost the standard of living of our customers, attract additional investments into the community and generate the need for financial products and services provided by community banks." In his article Mr. Kuznia quoted Clara Rodriguez, a sociology professor at Fordham University and author of "Changing Race: Latinos, the Census and the History of Ethnicity in the United States," who concurred. According to Ms. Rodriguez, "There's always been a lot of activity around this, but that activity in the past has been in the background, not at the forefront. Now it's much more in the open. I think more and more people are realizing how important the Census is."

Census officials estimate that the 2010 edition of the Census will show 306 million Americans of which 46 million will be Latino. If accurate, that figure will show a rise in Latinos from 12.5% at 2000 to 15% in 2010. Further, Census predictions show Latinos growing to between 21 and 31 percent of the total population by 2050. That means up to one-third of the U.S. population will be Latino in 40 years.

With roughly 40% of Latino household unbanked or underbanked, according to a recent FDIC study, I'd say this little Latino bank has its work cut out for it.

2W3DN5PDERGH

Hear Ye! Hear Ye!

2010-02-28T21:24:00.000-08:00

On February 23, 2010, I had an opportunity to testify before the Los Angeles CIty Council's Jobs and Business Development Committee. Councilmember Richard Alarcon is proposing a city law that will divest public funds from banks that do not have a strong record of social responsibility. As a community bank that is extremely active in the low- and moderate-income communities of East L.A. and Santa Ana, we are 100% in favor of this piece of legislation. The proposal requires banks to jumps through additional hoops, which we are not keen on. However, the spirit of the legislation is something I support.

I have included below the written testimony given to the Committee. Bottom line, city councils should reward with deposits those banks that are doing all the right things. Have a read.

Written Statement

Jobs and Business Development Committee
Hearing on Council File Number CF 09-0234

Jesse Torres
President and Chief Executive Officer
Pan American Bank
February 23, 2010

Chairman Alarcon and members of the Committee, I am pleased to submit testimony to the Los Angeles Committee on Jobs and Business Development on the topic of community re-investment and the potential divestiture of City funds from banks that have not demonstrated a positive track record of community responsibility.

My name is Jesse Torres and I am the President and Chief Executive Officer of Pan American Bank. We are a 45 year-old Latino-owned community bank headquartered in East Los Angeles. We are California’s oldest Latino-owned bank and the second oldest Latino-owned bank in the United States. Pan American Bank was established in 1964 by Romana Acosta Banuelos, the first Latina Treasurer of the United States. Pan American Bank was founded for the express purpose of serving the unbanked and underbanked Latino communities of Los Angeles and Orange counties.

As of December 31, 2009, $27 million of Pan American Bank’s $32 million loan portfolio was comprised of residential mortgages. Nearly every residential loan was made to low- or moderate-income borrowers. Pan American Bank’s mission is to transform and empower Latino communities through banking relationships built on trust, service, respect, communication, and guidance. Consistent with that mission, in 2009 Pan American Bank did not foreclose on a single borrower and modified 100% of borrower modification requests.

My testimony today is going to focus on the role community banks play in stabilizing communities during difficult times - a role that is largely ignored by larger regional and national organizations that do not have a close tie to specific communities and as such, do not feel compelled or are unable to assist communities that need help the most.

During the mid part of the last decade, money was cheap. Large regional and national banking organizations utilized cadres of local loan brokers and the Internet to make use of the vast amount of cheap dollars and to grow their organizations to unseen levels. As the supply of traditional borrowers dried up, alternative borrowers were cultivated - many of whom were ill-prepared for the challenges of homeownership but were intoxicated by the dream of owning their own home. Unfortunately, when the party was over, many of these financial institutions and their armies of brokers were nowhere to be found and borrowers were left to deal with the hangover effect all on their own.

As a seasoned banker I understand the economic and financial rationale for seeking economies of scale and market share. As a community banker, however, I also know the long-term damage that is inflicted on a community when financial institutions focus solely on short-term profit and ignore the long-term financial and economic health of the community.

For the past two years our communities in Los Angeles – particularly the low- and moderate-income communities, have been decimated by foreclosures. Initially lured by the dream of homeownership, many in our communities have been living a nightmare that began when they were offered financial products that made no sense for the borrower or the banks. Fortunately for the too-big-to-fail banks, relief came in the form of federal bailouts. Unfortunately for the borrowers, the too-big-to-fail banks were unable or unwilling to do the same.

I understand that too-large-to-fail organizations maintain highly complex financial arrangements with mortgage investors and other parties that may make modifications difficult. However, based upon these organizations’ influence, their history of financial innovation and inventory of immensely talented human capital as well as the modest cost of mortgage modifications relative to the high cost of foreclosures, I do not understand the hesitation to provide relief – particularly in light of the billions of dollars of public bailout funds that these large, too-big-to-fail firms received.

Pan American Bank is only a $40 million community bank and has very limited human and financial resources when compared to the too-big-to-fail banks. However, Pan American Bank has a perfect record when it comes to mortgage modification requests. Most of us can agree that the economic downturn is temporary and that jobs will return and income will increase in the future. Pan American Bank believes strongly that its 45 year existence is directly tied to the community’s support of the Bank. As such, now is the time for bankers to return the favor by treating customers with dignity and respect and by finding ways to assist customers in need.

Unlike too-big-to-fail banks, community banks are vested in the local communities they serve. Community banks survive and thrive only if the local community thrives. Community banks such as Pan American Bank owe their success to the community. Without local community support, community banks would cease to exist. As such, community banks are the first to assist the community and the last to say “no.” Community banks cannot ignore the needs of its local community, as opposed to large regional and national banks that can shift focus from one region to another. Community banks are woven into the fabric of the local community. Through good times and bad, community banks serve the needs and are the first to do what can be done to stabilize and improve the local communities.

City councils are also vested in the communities they govern. Cities thrive only if their communities thrive. As such, city councils and community banks share common goals and serve common constituents. Large regional, national and multinational banks with headquarters outside the community have no vested interest in the local community other than to generate income and export deposits to the most financially attractive region.

Given the mission of city councils, consideration must be given to how to best deploy deposits to enhance the standard of living of the residents served. Based on the similarities between city councils and community banks, city councils must include local community banks when determining how to allocate public funds. City council and community bank survival is dependent upon successfully meeting the needs of the community served. This is not the case for large regional and national banks that are able to change geographic focus based upon factors such as return on investment. As such, social responsibility is an inherent characteristic of community banks. A characteristic that may or may not exist within large regional and national too-big-to-fail banks.

If there is one lesson that should be taken away from this troubled economic period it is the effect that banks can have on stabilizing communities during severe economic downturns. Over the course of the past two years entire neighborhoods have been evicted by banks unwilling to make the effort to provide relief. The result is the further collapse of neighborhoods and the financial and psychological ruin of families whose dreams were quickly turned into nightmares.

City councils must consider the record of all financial institutions holding public funds. City councils must divest such funds from institutions with poor or superficial community reinvestment performance. City councils should use the power of their deposits to reward those institutions that act in a manner consistent with the council’s social responsibility objectives and that address the most urgent community needs.

Cities will benefit by rewarding banks that take social responsibility seriously. While certain large regional and national banks may provide benefit to certain areas within their footprint, the community bank model is specifically tailored to meeting the needs of the local community served and to provide financial and economic stability to the community. As such, community banks must be rewarded for their effort and noncompliant banks must be penalized for their lack of support. Within the banking industry, deposits provide a powerful incentive for compliance. A policy that rewards socially responsible banks will create substantive benefit for the city and its constituents. Thank you.

The Latino Middle Class

2010-02-14T00:18:00.000-08:00

Back in December I read an article on LATimes.com about the Latino middle class. In the article entitled "L.A. Needs a Healthy Latino Middle Class," Hector Tobar highlights three recent reseach studies from USC, UCLA and the Pew Research Center. All three focused on Latinos and all three were released in either November or December 2009 (odd, no?).

The three studies are contained below:

According to Mr. Tobar, Latinos make up a plurality of both Los Angeles County and Greater Los Angeles. "With this year's census likely to show a Latino majority in both the city and county of Los Angeles, it's obvious that our collective future is linked to the social health of that group of people."

Mr. Tobar highlights the December 2009 report of Dr. Jody Agius Vallejo. The USC researcher looked at the "pathways to success" that allow even people of humble immigrant origins to reach middle-class status. Her work rebuts the widespread perception that Mexican immigrants and their offspring are following a trajectory of downward mobility into a permanent underclass.

Dr. Vallejo's study focused on individuals that possessed at least three of these four characteristics:

College educations,
Higher than average income,
White-collar jobs, and
Home ownership.

According to Dr. Vallejo, each person who achieves social mobility improves the overall well-being of the community. Social climbers show others behind them the way forward. It is these individuals upon which the future of Los Angeles hinges.

According to Dr. Dowell Myers, a healthy middle class with Latin American roots is critical to the entire country's future too. This is the thesis of Dr. Myers book, "Immigrants and Boomers: Forging a New Social Contract for the Future of America."

As I read Mr. Tobar's article it reminded me that Pan American Bank is not just a community bank. It is also a tool for the families of the communities we serve to use to bootstrap themselves into the middle class. Apart from viewing our business as a collection of assets, liabilities and equity, we need to view it as a platform from which transformation can occur.

When I was in school one of the first lessons I was taught was the importance of the mission statement. Pan American Bank's mission is to transform and empower Latino communities through banking relationships built on trust, service, respect, communication, and guidance. This means we have a direct responsibility to operate our business in a manner that is consistent with that mission. There is much that we as a community bank and community leader can do to contribute to the improvement of our communities. I am happy to say that every day we are closer to fulfilling our mission.

Bank, A Four-Letter Word

2010-01-23T23:17:00.000-08:00

Sometime around the time I was a sophomore or junior at UCLA I decided that I wanted to pursue a career in banking. At the time, I envisioned something along the lines of investment banking. It was around 1988-1989. I remember sometime afterwards reading about Michael Milken, Drexel Burnham Lambert and a whole lot of chatter about greed, abuse and other related activities. It was right about that time that I decided I instead wanted to work for a regulatory agency like the SEC or the FDIC. I graduated at the tail end of the savings and loan debacle and joined the Treasury Department's Office of the Comptroller of the Currency as a bank examiner.

It was during my time with the OCC that I started to get an understanding of the differences between mega banks (those that are today too-big-to-fail) and "true" community banks. I will forever be thankful to the OCC for giving me the opportunity to experience examinations at the largest banks in the country as well as the smallest. These opportunities served to shape my career as a community banker.

If you know anything about "real" community banks you know that they are not run by Wall Street types. You won't find them having a power breakfast with Donald Trump or meeting with Tim Geithner for dinner. The CEOs of "real" community banks know banking and they know how their banks can and do best serve the local businesses and families within their communities. The CEOs of "real" community banks know the owner of the local strip mall down the street and its many tenants. The CEO of "real" community banks greet you at the little league fundraiser or the local Rotary Club or chaperone at the local high school dance.

So you can imagine how sickened I felt when I read the results of the 2009 Edelman Trust Barometer. The report found that in no country is trust in a more dismal state than in the U.S., where government, business and media are not trusted to do what is right. But more specifically, in the U.S., in just one year the trust in banks among 35-to-64 year olds dropped nearly in half, from 69 percent to only 36 percent. And the worst part of it is that no matter how much community banks have done to support local businesses and families, all banks have been painted with the same brush that should be specifically reserved for those banks too-big-to-fail.

Last week, in an attempt to escape banking, I picked up a copy of the recent issue of Sports Illustrated (January 25, 2010). The cover showed my hero Brett Favre on the cover. Excitedly, I began reading the issue (note: I have an odd habit of reading magazines from the back to the front...don't ask). Within two minutes, Selena Roberts in "Coming Clean: It's Complicated" starting taking pot shots at bankers in an article that was supposed to talk about baseball, steroids and Mark McGwire ("He must calibrate his words like an artful banker"). Are you kidding me! Is there no escape!

Banking was once a trusted and respected business. Bankers were the pillars of their local communities. No longer. After Congress rewarded mismanagement and bad behavior by banks and financial institutions that are too-big-to-fail by bailing them out with more than a trillion dollars of taxpayer money the public has become outraged. Unfortunately, most people and the media never had the opportunity I had to work for the OCC. They don't know that the differences between "real" community banks and too-big-to-fail mega banks are significant. Night and day significant. Black and white significant. Life and death significant. Right and wrong significant.

One of the biggest challenges for "real" community bankers, then, is to regain public trust and to make clear to the community that all banks are not cut from the same cloth. "Real" community bankers must build an understanding that community banks provide not only vital financial products and services but also serve social needs.

Directors, CEOs and senior executives of "real" community banks need to show their communities that they are accountable, responsible and good citizens. They need to show appreciation for being able to continue in business thanks to the patronage of the community. And, they need to continue to show how "real" community banks differ from the too-big-to-fail mega banks.

Financial Illiteracy is a Disease

2010-01-17T21:26:00.000-08:00

A recent viewpoint article by Laura Fisher in the December 2009 issue of Community Banker Magazine stated that many experts compare increasing financial literacy to decreasing obesity rates. According to the article, both decreasing obesity and increasing financial literacy have behavioral and educational components and a similar goal: using education to help individuals form good habits and/or change the ones that are destructive and often deep-seated.

I have been teaching youth financial literacy classes for over 15 years. I have done it on behalf of banks, religious organizations and nonprofits such as Operation Hope. In all the time I have donated my time to teaching financial literacy it never occurred to me to compare financial illiteracy to a disease. But after thinking about it, I agree.

Ms. Fisher states that "financial education has become our nation's No. 1 defense against another financial crisis." While it took two to tango - the misinformed and financially illiterate consumer and the overly aggressive financial institutions - removing one of the two from the equation would have eliminated a lot of the pain and suffering.

While I do not believe that all the damage would have been avoided, I do believe that a more informed consumer would have prevented many of the side effects from this period of easy credit. Let me make it very clear that the substantial majority of financial institutions - particularly community banks - were not at fault. It was a small network of large players - most of which are no longer with us - that created the program. The rest of us - especially the community banks - are now unfairly guilty by association. But that is a story and rant for a different day.

So how do we as a nation use financial literacy to defend against another similar crisis? Whose plate should this sit on? Elected officials? Educators? Nonprofits? Financial institutions? All of the above! Creating a financially literate America will be a very difficult task that will require complete and total collaboration. It will require a long-term strategy that holds all participants accountable for success. It must also include all segments of society - from low-income participants to those with silver spoons. Financial literacy is a learned trait that everyone needs.

Ms. Fisher makes another strong point when she says that "a one-size-fits-all approach is not appropriate for a diverse population with different learning styles." Some people learn through listening, some through watching, some through doing, and most through a combination. As such, we need to use different ways to deliver the needed information.

If you follow Pan American Bank you've heard that we recently partnered with a nonprofit called LatinoGraduate.net. Through this partnership Pan American Bank is providing LatinoGraduate.net with rent-free space to establish a "new media" studio. Part of LatinoGraduate's mission is to establish an advisory board that will guide the creation of financial literacy curriculum that will be distributed to schools and homes across the Country via the Internet. As of the date of this blog posting the advisory committee included Pan American Bank as well as financial literacy thought leaders from Texas State University, California State University and the University of Notre Dame as well as others from financial institutions and media companies.

While my team and I will continue to conduct face-to-face training within our community, the delivery of financial literacy training via the Internet provides a second approach which reinforces the lessons of financial literacy.

Which brings me to the next topic: financial literacy is not a one-and-done activity. While I applaud educators that allow bankers to visit their schools to provide lessons in financial literacy, they have to do more. Just as history, math, science and the other subjects span extended periods of time, so too should lessons in financial literacy. To often I visit schools that do not ask for follow up.

My advice to community-minded individuals is to create a collaborative committee comprised of elected officials, financial institutions, nonprofits, educators and other stakeholders. The collaborative should work together to create a community-based effort to provide ongoing financial literacy education to the local community. Begin with the 2006 National Strategy for Financial Literacy. Leverage the tools provided by the FDIC's Money Smart program. Work with organizations such as Operation Hope. Through these efforts we can eliminate the disease that is financial illiteracy.

A Sort Of New Year's Resolution

2010-01-04T07:48:00.000-08:00

The posting below was taken from an email sent by me on January 1, 2010, to Bank stakeholders. I thought I would also share it here since it contains some information worth sharing.

# # #

When I joined Pan American Bank in June, I stated that I wanted to make Pan American Bank THE bank of East Los Angeles. Having been born in Boyle Heights and raised in East L.A., I jumped at the opportunity to come back to East Los with the tools I had acquired working around the country. The bulletpoints above are not new year's resolutions because they will not be accomplished in one year. They are, however, goals that I have established for the Bank to work on. Not by itself, but in collaboration with others in the community. We're a very small bank...but with the right partnerships we can create tremendous change.

I know you are busy and have little time for touchy-feely e-mails such as this. But please indulge me for three minutes as I share what 2010 will bring to East Los Angeles from Pan American Bank's perspective.

1) LatinoGraduate.net: In January, LatinoGraduate.net, a new media nonprofit focused on getting Latino youth into college and keeping them there until graduation, will be moving into Pan American Bank's corporate headquarters. The Bank will be donating a portion of its space to permit LatinoGraduate.net to tape and broadcast its shows. The Bank will host a Open House Celebration on Friday, February 5, 2010, from 6:00 pm to 10:00 pm. RSVP to Tony Ramirez if you did not receive an e-mail invitation.

2) VELA: January brings a second nonprofit to Pan American Bank. VELA, an East Los Angeles-based powerhouse nonprofit, will be operating a technical assistance center from the Bank's headquarters. The program will provide technical assistance to both nonprofits and small businesses. This effort will be a collaboration between not only VELA and Pan American Bank, but many other organizations that will bring essential resources to bear.

3) Institute for Nonprofit Leadership: Pan American Bank, VELA and the Riordan Volunteer Leadership Development Program will launch in September 2010 the Institute for Nonprofit Leadership. The Institute for Nonprofit Leadership will train young professionals from eastern Los Angeles County on how to serve as leaders of nonprofits, with a focus on serving on nonprofits located in eastern Los Angeles County. The Riordan program has been extremely successful with participants from downtown and the westside and will now collaborate with Pan American Bank and VELA to roll out a similar program at the Bank's corporate headquarters in East Los Angeles.

4) Financial Services Advisory Council of East Los Angeles: In January the Bank will kick of its Financial Services Advisory Council of East Los Angeles ("FSAC-ELA"). The role of the FSAC-ELA will be to bring together local stakeholders to develop strategies that address the shortcomings cited in the FDIC's recent Survey of Unbanked and Underbanked Households. As the only bank headquartered in East Los Angeles, Pan American Bank is taking a leadership role in working with the offices of elected officials, nonprofits and residents, to bring mainstream banking services to as many East Los Angeles households as possible. The FSAC-ELA will be comprised of representatives from throughout the East Los Angeles community.

5) UCLA School of Urban Planning: At the end of this email is an e-mail to me from Raul Lugo. Raul is a graduate student in the UCLA School of Urban Planning. Raul will graduate in June. He and a team of classmates have formed a company that will be attacking some of the issues we face in East Los Angeles. Raul and his associates will bring to East Los Angeles energy, enthusiasm and a new set of eyes. When I was fresh out of UCLA someone took a chance on me and provided me with the mentorship that helped me succeed in my professional career. I hope to do the same. But more than that, I encourage you to read his email and engage him in thought provoking discussion. Only through such discussion will issues and challenges surface and get worked out. If the Bank has any shot at achieving the goals above, it will only come through collaboration.

There is much more in the works but I'll save that for another day. While 2009 was a challenging year for banks, it also provided tremendous opportunities. As a bank we have a lot of work ahead of us. Just the daily challenge of bringing in new deposits and making new loans is enough to fill our plates. But Pan American Bank is not just any bank. It has a mission that is unique and a story that needs to be told if we are to be THE BANK OF EAST LOS ANGELES.

Before I conclude, I would like to publicly congratulate the team at Pan American Bank. In 2009, the Bank did not foreclose on a single borrower and in 2008 it had only one foreclosure. While the Bank did modify some loans, the Bank's goal was to do everything possible to keep our customers in their homes. We don't know what 2010 will bring but we look to have similar successes this time next year.

Best wishes to you all in 2010. On behalf of the employees, shareholders and customers of Pan American Bank, Thank You for your continued support. May all of our goals be achieved this year so that we can look back on this year with a smile.

Jesse Torres
President and CEO
Pan American Bank
3626 East First Street
Los Angeles, CA 90063
(323) 264-3310
(323) 264-8057 fax

"The mission of Pan American Bank is to transform and empower Latino communities through banking relationships built on trust, service, respect, communication, and guidance."

---------- Forwarded message ----------

From: raul lugo
Date: Thu, Dec 31, 2009 at 8:14 PM
Subject: New Year Resolution
To: jtorres@panamericanbank.us

Jesse,

We will create a movement with inventive and diverse approaches to the rebuilding of our community. This will be done through targeted investments, which will need to be meticulously and assertively planned for success due to the present scarcity of resources. Our efforts are aimed to creatively effect change in East Los Angeles. These investments will be made in a broad range of areas such as housing, small business formation and development, and economic development at large.

Investors look first for the formal investment targets due to their familiarity. The traditional channels offer a formal infrastructure friendly to business that simply does not exist in the inner cities of America. As a result, these communities suffer from diminished services and struggling institutions. Private investment in these communities often comes from the people who live there themselves. These entrepreneurial ventures emerge as a result of necessity due to the lack of support and disinterest from mainstream investment. The goal is to identify many investment targets with a strong potential for profits. We need to create a new paradigm of profitable, sound and constructive investments outside of traditional channels. We need strong leaders who have decided that they will take the chance with us and place their valuable investment in this energetic community.

We are currently learning the limits of government involvement. California faces bankruptcy amidst the worst budget crisis, and public funds are simply insufficient to meet the needs of the population. The aid and subsidies that trickles down through a complicated bureaucratic process is proving to be ineffective. This means our team will have to shift the level of sophistication and inventiveness to be the group that seeks investments for the community of East Los Angeles.

The business sector is an integral partner in the economic development of East Los Angeles. As grants and donations diminish in economic downturns like the one we are experiencing, agencies that seek to fill gaps in services need to tap into their entrepreneurial capabilities to survive. Financial institutions are of particular importance because they need to broaden their perspective on the types of investments they are willing to consider. Promoting small business creation, we can create sound and profitable deals, even with people who have little or no education about conventional business establishments. In this process, we will need to inform the population about the importance of civic participation to build transparency, and trust through dialogue between different community stakeholders that would have otherwise never exchanged ideas with one another. We will harness a conscious smart growth movement in East Los Angeles to make the United States free enterprise system responsive to the needs of the community by building a resilient and sustainable network to support new enterprises.

Happy new year, let's make it a good one.

Raul

Oh No You Didn't!

2009-12-31T23:09:00.000-08:00

Before I get hot and heavy in this post, let me make one thing clear - I have nothing but respect for Wells Fargo Bank. I admire its leadership and I have many friends within its ranks that I consider best in breed.

I was recently paging through an industry magazine that featured an interview with a top ranking officer at Wells Fargo. This article was essentially a profile of a very accomplished Wells Fargo banker. As I read the article I was feeling good about this person and Wells Fargo Bank. Then it happened...

"Leading the COMMUNITY BANK [emphasis added]...blah blah blah." What?! Community bank? Wells Fargo? At that point I let out a loud "are you kidding me!?" (I figured it was loud because everyone outside my office was staring at me and wondering if I was upset with someone on the phone). "Nothing to see here folks. Get back to work."

Again, I have no problem with Wells Fargo. In fact, thoughout this whole mess I think they have managed their affairs better than most of the big guys. I love their marketing, their strategy and they seem to train well (two of my top performers are Wells Fargo alumni). I do, however, have a problem with a bank that calls itself a community bank that has total assets of $548 billion, $325 billion in deposits and 3,429 branches in 24 states (as of 9-30-09).

Unfortunately for me there is no clear cut definition of what "community bank" means. And as such, I can't call out Wells on it. And I'm pretty sure they know that. In a twisted way, I suppose I appreciate that.

Back in October 1997, Steve Cocheo tried nailing down a definition in his ABA Banking Journal article, "Musing toward a definition of community banking." According to Steve, "community banking" can include mega-banks as well as local home-grown institutions. It all depends on your point of view and interpretation. As a small bank operator that is deeply vested in its community, I find that fact very disappointing.

In my perfect world community banks are not titles bestowed simply for doing good deeds in a community. To me and many of my community banker friends (as defined by me of course), community banks are just that, banks that serve a particular community. In my opinion, if your footprint spans the western United States you are not a "community bank." I don't care how you divide the empire. You're not a community bank. Plain and simple.

Over the past year and a half the banking industry has taken it on the chin. Surveys conducted during this period have shown a steady reduction in consumer trust of banks. With billions in bailouts, foreclosures at record levels and the whole regulatory reform mess, it is clear why consumers are not happy. While I will agree that some bankers took a few liberties with consumers, for the most part bankers and their banks were also brought along for the ride. In particular, community banks, who generally stayed away from the practices that created the whole mess.

The media and others are starting to recognize the role that community banks played or did not play. Not only did community banks generally not play a role in creating the banking debacle, they have generally been the only group lending during all the chaos. So when some regional bank comes along and calls itself a "community bank," I'm sorry, but I take offense. I respect you, but I take offense.

My problem is that community banking cannot be easily defined. For me, community banking means a bank that is focused on a particular "community." For example, I have three branches - two in East Los Angeles and one in Santa Ana. Those two communities are my focus. Nice and tight. When I can call the entire state of California my community I think I've gone beyond community banking. Perhaps a better guide is how much time your bank management spends on Wall Street versus Main Street.

I will be the first to admit that I don't know the right definition of what makes a community bank. But something I've learned as a banker is that your gut is usually right. And on this one my gut tells me that if you run a bank with branches in nearly half of all U.S. states, you're not a community bank.

What do you think? What does community bank mean? Let me know. I'm interested in hearing your opinion. Maybe I'm all wrong on this.

Stop Acting Like A Bank. You're Embarrassing Me!

2009-12-22T17:22:00.000-08:00

As I was paging through the November 2009 issue of Bank Technology News I came across the following news blurb:

"A poll of 18 to 29 year olds in the U.S. funded by Microsoft found that about half feel the banking industry is in touch with their generation; and about 60 percent say their level of trust in financial services has decreased over the past year. When asked how banks can improve trust, 27 percent said blogs would be very important, while 42 percent said it would be somewhat important. And 75 percent were in favor of monthly email updates."

As you can imagine, I was pleasantly surprised to know that we were on the right track when we decided to launch this blog.

I have been a banker for most of my adult life. When I wasn't a banker I was a bank examiner or a bank consultant. As such, banking has been at the center of my professional life for nearly 20 years. During this time I have focused almost entirely on community banking.

Based on my experience, what I can tell you is that community bankers are Main Street, not Wall Street. We coach the local AYSO team, we shop at the local Walmart, we eat hot dogs at the local little league games, we hang out at the local pub and we drive our own cars. And most importantly, we do not single-handedly threaten the viability of the American banking system. Unforunately, the everyday bank customer does not know the difference between a community bank and a big bank

When I started this blog a couple months ago I wanted to share a little bit of the Bank in an informal setting. Along the way I hoped to give readers a glimpse into the "personal" side of the Bank. I hope I am doing that. But more importantly, I hope that readers are starting to see that community banks are more like the corner drugstore than the trillion dollar bank. We TRULY stand behind the community. But more importantly, we thrive only if the local community thrives. So we are fully vested and all in.

Through this blog, therefore, I hope to accomplish a couple things. First, I wish to reach out to the millenials who feel we have no clue. We get it. We know you demand more than what your dad's bank gave you. And community banks are here to let you know we get it. Some of us move faster than others, but we get it.

Second, I hope to show you that community banks make a REAL difference in the community. We may not have the budgets that big banks have but you can always count on us to support the community and its various efforts. We are built around the community, through good times and bad. We don't just close the doors and move to the next town when things get tough. We stay and struggle with everyone else to get things back on track.

So, the next time you need a loan or need to open a new deposit account, ask yourself if having a branch on every corner in every state is better than supporting the local bank that is a part of the local fabric. And if you're a millenial, feel free to send out a tweet about it.

Take Credit Where Credit Is Due

2009-12-14T06:13:00.000-08:00

The end of December 2009 (27th) marks my six month anniversary as the CEO of Pan American Bank. In my original draft to this post I used the term "leader" instead of CEO. But I have very specific criteria for what makes a "leader" and as such, I will hold off on calling myself this organization's leader...for now.

As the CEO of a community bank it is not only a "good idea" to get out into the community - it is ESSENTIAL for our survival. I need to be out there for reasons such as business development, needs assessment, etc. But I am learning that the most important reason for me to represent Pan American Bank is because we are so reflective of the Latino communities that that we serve.

It did not take me long to figure out how this 45 year-old organization assumed some of the traits of its Latino customers. We are a small, feisty and proud bank. We are loyal to our customers and our community. We are full of energy and the will to do great things. But unfortunately, we are the last to let others know about our accomplishments.

Back in November 2009, CNN ran a series of video essays called Latino in America. According to CNN, by 2050, the U.S. Latino population is expected to nearly triple. CNN explored how Latinos are reshaping U.S. communities and culture and forcing a nation of immigrants to rediscover what it means to be an American.

The research conducted by CNN highlighted some great achievements by Latinos. But despite the strides made by Latinos, we continue to struggle with tooting our horn. As a result, many great people and efforts go unrecognized. People and efforts that can significantly enrich the fabric of our incredible nation.

Over the weekend I was asked to sit on a panel for a California Assembly Town Hall meeting. The portion of the meeting I sat in on had to do with the housing crisis, foreclosures and loan modifications. I could tell from the onset that this meeting had the potential to sting, as the seats were filled with consumers, consumer advocates and others looking to let me know how horrible a person I am for being a banker.

The session was started by Speaker of the California Assembly Karen Bass. The Speaker then passed the floor to me for an introduction. As I began my introduction I could hear the clicking of bic lighters getting ready to ignite the torches. But within minutes the crowd quieted down and began nodding their head in support. At the end of the meeting, as I exited the stage, I was approached by many people - consumers, advocates, political representatives and others. All seemed amazed at what they had heard. Many almost could not believe their ears. And why would they, we have not tooted our horns to let anyone know.

So what was it that was so amazing? Well, without going into too much detail, here's a quick rundown. You tell me if this is something the world should know about.

1) Pan American Bank was founded in 1964, making it California's OLDEST Latino-owned Bank and the Country's second oldest. In 2010 the Bank will enter its 46th year of operation. We've been around longer than most California banks, period.

2) Pan American Bank was founded by Romana Acosta Banuelos, a woman born in Arizona in 1925, who was "invited" by the U.S. Government to relocate to Mexico in 1933 during the Great Depression, only to return in the 1940's to launch one of California's most successful food companies, Ramona's Mexican Food Products, Inc.

3) Mrs. Banuelos, founder of Pan American Bank and Ramona's Mexican Food Products, was appointed in 1971 to the post of U.S. Treasurer - the first Latina to hold that prestigious position. At the time, Mrs. Banuelos was the Country's highest ranking Latino.

4) Pan American Bank is headquartered in East Los Angeles - an example of the Bank's commitment to its mission of serving the Latino community. No other bank is headquartered in East Los Angeles.

5) Eighty-five (85) percent of Pan American Bank's loans are 1-4 family mortgages. Pan American Bank has foreclosed on only one (1) borrower during the past two years, showing the banking industry that minority lending can be done prudently. Pan American Bank has not originated a single subprime loan.

So there it is. My top five reasons why Pan American Bank is worthy of praise. It is my mission to ensure that Pan American Bank is no longer the Latino community's best kept secret. The secret is out! Let the world know. Hear me toot our horn! Let me hear you toot our horn!

How Well Do You Know East L.A.?

2009-12-04T07:51:00.000-08:00

If you have been a reader of this blog you know a few things about Pan American Bank. You know that Pan American Bank is the only bank headquartered in East Los Angeles. You know that Pan American Bank has been in East Los Angeles since 1964. You know that Pan American Bank was founded by Romana Acosta Banuelos, the first Latino Treasurer of the United States. And you know that Pan American Bank's mission is to serve the Latino communities of East Los Angeles and Santa Ana. What you may not know is where East Los Angeles is located and what it is all about. So this post today is about sharing a little something about the East L.A. community.

East Los Angeles or East L.A. or East Los, is an unincorporated area of Los Angeles County, California that spans a total area of 7.4 square miles. East Los Angeles is bounded by the city of Los Angeles to the west, the unincorporated area of City Terrace to the northwest, the city of Monterey Park to the northeast, the city of Montebello to the east, and the city of Commerce to the south. The unincorporated area of East Los Angeles was once known as "Maravilla" and also "Belvedere Gardens".

According to the 2000 census, the area had a total population of 124,283 with 29,844 households, and 25,068 families residing in the community. There were 31,096 housing units and a whopping 96.8% of the population was Latino.

Of the 29,844 households, 51.7% had children under the age of 18 living with them, 53.1% were married couples living together, 21.7% had a female householder with no husband present, and 16.0% were non-families. Only 12.5% of all households were made up of individuals and 6.4% had someone living alone who was 65 years of age or older. The average household size was 4.15 and the average family size was 4.42.

The age distribution of the community was as follows: 34.6% under the age of 18, 12.6% from 18 to 24, 30.7% from 25 to 44, 14.2% from 45 to 64, and 7.9% who were 65 years of age or older. The median age was 26 years. For every 100 females there were 101.6 males. For every 100 females age 18 and over, there were 99.2 males.

According to the 2000 census, the median income for a household in the community was $28,544, and the median income for a family was $29,755. Males had a median income of $21,065 versus $18,475 for females. The per capita income for the community was $9,543. About 24.7% of families and 27.2% of the population were below the poverty line, including 35.0% of those under age 18 and 13.5% of those age 65 or over. East Los Angeles has a very large Latino population that consists of Mexicans, Guatemalans, Salvadorans, and Hondurans.

As East Los Angeles is an unincorporated community, it does not have a local government, and relies on the County of Los Angeles for local services. Despite multiple failed attempts in the past, residents are currently campaigning for cityhood for East Los Angeles.

The East Los Angeles Latino Walk of Fame was inaugurated in April 30, 1997 to honor outstanding leaders who have made historical and social contributions. East L.A. was both the origin and destination of Cheech Marin in both the song and the movie Born in East L.A.

Famous people born in East Los Angeles are many including Constance Marie, Edward Olmos, Lee Baca, Oscar De La Hoya, and Paul Renteria.

Over the course of the next couple months I will discuss initiatives that the Bank has undertaken. Many of the initiatives are driven by the 2000 census as well as current events such as the Cityhood for East Los Angeles.

I hope that this information gives you a better understanding of our community. It should also explain why our mission is so important. I am excited to share these developments with our readers and look forward to the feedback received as we continue on this journey together.

Toy Drive Organizers Did What?! Are You Kidding Me!

2009-12-03T06:22:00.000-08:00

I don't have to tell anyone that this year has been a tough year for everyone. The news on a daily basis goes on and on about unemployment rates, foreclosures, recession, depression, etc. What very few of these reports do is touch on how the current economic disaster has affected the lives of the children of those families.

Beginning in October of this year the Bank began to get approached by community groups asking for donations to cover the toy drives they were running for which they expected a record number of kids. Given our mission of assisting the local Latino community we serve, we signed up for several local toy drives. In one case we hosted an after-hours toy drive fundraiser that saw over 300 people come through with toy and financial donations. With others we made financial donations to ensure that kids in our communities of East Los Angeles and Santa Ana received at least a little cheer during a year that saw their family's finances decimated, their home lost or worse. All in we've supported around six toy drives that run in various segments of our community.

So I wake up this morning and see the following headline in my morning news update: "Some Toy Drives Check Immigration Status." To say I was sickened is an understatement.

Obviously I understand that there are two very distinct camps in this country regarding immigration and immigration status. This post is not about who is right or who is wrong. This post is about being humane.

What I am about to say is a generalization so please treat it as such. Toy drives are originated by people with warmth in their hearts and the desire to do what is humanely right. Toy drives are USUALLY not started by people with agendas. Sometimes, however, people with agendas do start toy drives or the warm people who started a toy drive are replaced over time by people who have been given the responsibility to keep a toy drive going. These people treat the toy drive as a task. They do it not for a particular mission but because they have to. To those people I say, please examine why you are doing what you are doing and consider if what you are doing is consistent with the Christmas (or holiday) Spirit.

As I noted above, there exists a major battle over immigration. But I remind everyone that even battles and wars have rules. Even in the heat of major wars we have rules such as the Geneva Convention which protect those providing aid to those in trouble. Our children, regardless of their origin or their parents origin, are victims of an economic war. To inflict pain and suffering upon them by not letting them participate in a toy drive is an inhumane act and should be a violation of some kind of law of political war.

Again, I'm not telling anyone who is right or wrong in this battle over immigration. What I am telling those who are in charge of toy drives this year is to invoke your own form of Geneva Convention and protect the children that are the victims in a war they played no part in.

So screen you families and make sure they are truly needy. But please, do not base your decision on immigration status. These kids have no choice. They are non-combatant prisoners of war, or more appropriately, innocent bystanders. Please treat them as such and let them feel the love and kindness that your toy drives are intended to deliver.

What This Country Needs

2009-11-26T07:28:00.000-08:00

Los Angeles County has a population of roughly 11 million people. Not all of these people are natives. Many have come from other places. It is a true melting pot of people with different cultures, religions, languages, shapes, sizes, etc. It is one of the things I love the most about this town. It's why I have never moved away and why I never bad mouth my City of Angels.

For the most part, the citizens of this great city tend to get along. Sure, like every big city, we have our share of problems. But given our population of 11 million, we do pretty great. With one exception....

That's right, the Big Game.

Now I understand the other parts of the country have their version of the Big Game. But none of these compare in scale with ours here on the Left Coast. No offense, of course.

Regardless of the college you attended or did not attend, for one week each year, you're either a Bruin or a Trojan. But what does this have to do with the Country? Well, absolutely nothing! Sorry, but I had to take a moment to say GO BRUINS!!!

Ok, now on to the regularly scheduled program...

As a community banker I attend many local functions. Some of these functions are industry related and some are hosted by community groups. As you can imagine, the tone at many of these functions lately has been fairly depressed. With the economy the way it is, so many are disappointed with the state of the economy and many are struggling to find jobs.

I was asked to attend a local Rotary luncheon this week which featured former standout players from UCLA and USC. Being a proud UCLA alumni, I jumped at the chance. When I got there I saw what I expected. Half the room was decked out in blue and gold and the other in cardinal and gold. As I mingled I heard a lot of the same about the economy. But something was different. Attitudes were different. The people were more positive.

At the end of the luncheon, as I rode the elevator down, I starting thinking about how different this event was compared to the others lately. How positive and happy people appeared, including the unemployed. Then it struck me. Hope!

Those present at the meeting were hopeful about something. They were hopeful that their team would win the Big Game on Saturday. The fact that the economy stunk or that things we not good, for a moment became irrelevant. They smiled, laughed, cheered and were generally optimistic and hopeful.

Now, by saying this please do not attribute my comments to any recent political campaign using a similar slogan. What I am merely trying to say is that as we all struggle through this difficult economic period, be sure to find something that gives you hope. Something that keeps you going. Whether its coaching your kids soccer game or learning a new skill. Whatever it is, find something to keep you occupied and moving forward.

The interesting thing about this whole economic mess is the role that we all play in either improving it or keeping it down. If we all believe that the sky is falling, it certainly will fall. However, if we feel good about our prospects, we'll likely spend a little more, oiling the wheels of economic improvement.

The government can throw all the money it wants at the problem. But if you and I don't believe that things will get better or if we don't at least feel better about ourselves, then no matter how much money is thrown at the problem, it will not be enough.

Today it is Thanksgiving in the U.S. It is a day to give thanks for all that we have. Take time today to spend with your family and let them know how much you appreciate them. Don't just think it, say it.

Many years ago, shortly after graduating from college, I read a book by a motivational speaker named Denis Waitley. Something I read in one of his books really had an effect on me, my career and family life. Denis said (I am recalling so it may not be precise but you'll get the point), "It's not what happens to you that matters, it's how you take it."

So as we move forward in this continuing mess of an economy, first, give thanks for what you can. Afterwards, remember, it's not what happens to you but how you take it. Or, in other words, if you're holding a bag of lemons, make lemonade and then invite people over to share with you.

We will come out of this. It may take longer than we would like but it will happen. Hang in there and make the best of it. Try not to get too down, and by all means, don't do anything crazy. The holidays are some of the toughest times for many people. If that's you, stop and reach out to someone. Find a way to cope and let the moment pass.

Well, I can smell the pies baking so it means its time to go. Happy Thanksgiving everyone and I'll see you back here soon.

It Can Be A Cruel World

2009-11-24T11:16:00.000-08:00

Earlier today I sent off a press release to the world proudly announcing that Pan American Bank had taken a big step in bringing social media to its mix. The effort had taken some planning - though not a tremendous amount, given the small size of our shop. But, still, some effort and thought had gone into it.

Floating on air and proud of our little Latino bank, I kissed my daughters and wife goodbye and got into my car and headed off to work. I was ready to take on the world, clear clutter and projects off my desk and ease into my holiday vacation. That's when it happened...

Just as I got on the freeway onramp, my Blackberry began to blow up. Alerts, emails and frantic phone calls. "The blog is creating chaos!!! We're a B-I-G FAIL!!! We and YOU are becoming the laughing stock of the social media community!!!" What?!!

Fortunately there was a line at the freeway onramp that allowed me to read the messages and answer the calls before putting my life at risk on the Los Angeles freeway system.

So what was all the hubbub. Well, a couple things.

First, if you look at this blog, along the right side and below you'll see ads displayed by Google. When I created this blog I was provided the option of adding them onto the blog.

While some people (spammers selling their wares) would like you to believe there is money to be made displaying these links, they are mistaken (have you clicked on one of these links while reading this? Didn't think so). In other words, the Bank is not going to swap lending for Google Ads any time soon.

My only rationale for having the Google Ads is that Google makes its fortune off of these things (they sell the advertising) and I suspect that all things being equal, a bank blog with Google Ads displays higher than blogs without (though I would imagine Google would deny my assertion). I could be wrong but I am entitled to my opinion.

The problem with the ads is not the ads so much as the fact that Google placed ads for Bank of America on the blog and given that we ARE a bank, that seems somewhat contradictory. In fact, by the time I got into the office, the Twittersphere was burning up with this story.

The second problem was that in a past life (before becoming a bank CEO), I had written the most popular ebook for bankers on social media, The Community Bankers Guide to Social Network Marketing. It was featured in many industry magazines and is still a tremendous hit - though it is nearly a year old (a lifetime in social media time). As such, my experience and own advice should have prevented this.

Truth is, the criticism is accurate. While I did input a few domains to block, I did not test the blog to make sure my blocks took. Now I realize that to readers of this blog, that really does not matter. I did not create this blog to "market" products or services. Regardless, many will argue, "why give the competition an open door on your blog." So in that case, my bad and FAIL.

So what now? Well, I still do believe there is value in keeping the Google Ads on the site. Who knows, maybe we'll suddenly start earning some real income as a result of this blog posting! Ok, probably not.

I'll go back and tweak my settings again (and again and again, if necessary). I'll have to walk with my head down at the next social media conference I attend and take endless ribbing from my friends. But in the end, I think this was a good lesson and a great outcome.

Just as no one can look away from the car pulled over by the highway patrol on the side of the road, much attention was brought to my little Latino bank blog. Sure it cost me some personal capital but did it really? Social media is about transparent and honest communication.

At the end of the day, mistakes will be made. What matters is how you handle the mistake and prevent future mistakes.

Thanks for visiting. I look forward (sort of) to hearing your feedback.

Community Banks and the 2010 Census

2009-11-22T08:02:00.000-08:00

Recently I was asked by the representative of a local elected official to participate in a grass roots effort directed at promoting awareness and participation in the upcoming 2010 U.S. Census. The Committee that was formed includes members of East Los Angeles' most influential...well...influencers. The committee name...the East Los Angeles Complete Count Committee.

After reviewing the data presented to me by members of the Committee, joining the group was a no brainer. While I always knew there was an important use for the Census data other than determining low- and moderate-income communities for Community Reinvestment Act purposes (the CRA is a bank law that encourages lending, investment and services in certain areas based on Census data), I never realized how important the Census process was for the communities served by the Bank.

The U.S. government utilizes census information relative to population density, levels of income, age, and other factors to determine how to allocate funds across the Country. Studies have found that Los Angeles County - particularly those areas (census tracts) that are heavily Latino-based, lose federal investment monies due to undercounts of residents that take place during the census counting process.

The reasons for the undercounts are many, ranging from lack of understanding to fear (many Latino immigrants, whether documented or not, are skeptical of government officials coming to their doors due to events common in their countries of origin).

East Los Angeles has historically been considered a "hard-to-count" community. What residents need to understand is that the census figures determine how nearly $400 billion in federal funds are disbursed each year.

As the only community bank headquartered in East Los Angeles, it is our responsibility to support efforts that ensure that the local community gets its fair share of federal investment. Such investments include monies related to education, infrastructure, social services and other critical projects.

So, over the course of the past couple weeks the East Los Angeles Complete Count Committee has worked frantically to set up a December 12, 2009, press conference and Latino Census Summit. The event is aimed at reaching out to hard-to-count populations in Los Angeles County. The event will feature television and radio personalities, Latino advocates, and local elected officials. Following the press conference the East Los Angeles Complete Count Committee will host the first annual Latino Census Summit where expert panelists will deliver important information regarding the 2010 census.

As a local corporate citizen it is in our best interest to maximize investment dollars in our community. Investments boost the standard of living of our customers, attract additional investments into the community and generate the need for financial products and services provided by community banks.

Don't Make Yourself Comfortable

2009-11-17T23:05:00.000-08:00

I am a member of the Rotary Club of East Los Angeles. We are a small club but a dynamic club.

At today's meeting we had the pleasure of being visited by a team of leaders from our district, including District Governor Tom Novotny from Las Vegas. Tom gave a very moving presentation that included sharing a couple of very personal experiences. These experiences he described as taking him from a member of Rotary to being a Rotarian.

Tom's central theme was how important it is for us as humans to roam outside our comfort zone. The couple stories he shared demonstrated how when he was placed into situations that were very uncomfortable and uncertain, he forced himself outside of his comfort zone and found himself incredibly enriched from the struggles that came with going into the unknown. While I do not have the time to go into the details, let's just say that there was not a single dry eye in the place after his presentation.

As I drove to my next meeting I was replaying his stories and wondering what I would have done if placed in his shoes. And over and over I came up short. I repeatedly rationalized and came up with reasons why I would not have ventured outside MY comfort zone. While I don't think my decision would have made me a bad person, I see in hindsight how I would not have benefitted from the life experiences that the opportunities presented.

One reason why I love Rotary is because it is good people coming together to do good things. Belonging to Rotary makes me feel good about myself. But today I realized that despite my contributions to Rotary, as of today I am only a member of Rotary. What I am not is a Rotarian as I have not had that "Rotarian Moment."

Every now and then I experience something that has a long term effect on my perspective. Today I am happy to say that learned an important lesson. In a sense, my eyes have been opened and I now know that being a Rotarian is much more than being a member of the Rotary. I also know that in order for me to become a true Rotarian I will have to make that leap outside of my comfort zone. Something for me to work on.

The Importance of Art

2009-11-16T12:40:00.000-08:00

As with most cultures, art is an integral part of everyday life. It is no different in the Latino culture. Cultures tell their story over the course of time through their art. And subsequent generations learn of their history through art.

When we headquarted our bank in East Los Angeles over 45 years ago, our founders wanted for the community to learn and be proud of community's Mexican roots. The founders chose to express the history by engaging a wonderful artist by the name of Jose Reyes Meza. For over 45 years, the entrance of the Bank's headquarters has been guarded by the five murals shown below.

In September 2009, the Bank decided to recommit itself to the support of the local arts. The first effort of this initiative involved exhibiting the works of a family of local artists, the Sibaja family. The Sibaja family is comprised of two brothers and one sister. The exhibition took place on October 24, 2009, during the Bank's 45th anniversary celebration. Subsequent to the event, the Bank has dedicated a section of the main branch to displaying the art of the Sibaja family.

Recently, the local media took notice of the Bank's tie-in to the arts and chose to feature the Bank and the Sibaja family in a piece for Spanish language television.

In an effort to continue our support the arts, Pan American Bank will feature local artists in a series of MasterCard debit cards. The first card will feature the art of Calixto Sibaja. Future versions of the card will also feature talented local Latino artists. The first debit card is expected for release in January 2010.

A prototype of the cards is shown below.

MALDEF's 35th Annual Awards Gala

2009-11-14T07:42:00.000-08:00

On Thursday, November 12th, I attended MALDEF's 35th Annual Awards gala. It was held at the Bonaventure Hotel in Downtown Los Angeles. As usual, the event was a who's who of local and national Latino talent. The over 1,000 attendees included movers and shakers from politics, media, law, business, education and every other industry.

The event honored Eva Longoria-Parker, Dr. Rodolfo Acuña, Anthony Solana Jr. and Anheuser Busch Cos.

Longoria-Parker was awarded with MALDEF's Community Service Award. Years ago I attended a fundraiser that benefitted children with cancer. It was Eva's early days as a supporter and philanthropist. In the years since, Eva's career has continued to grow as well as her personal wealth and network of high-net worth people (she's married to an NBA player). She has taken the opportunity to become more immersed in doing good things. I applaud that.

Rudy Acuña, recipient of the Lifetime Achievement Award, is one of a handful of people still living that are responsible for the Chicano rights movement that began in the 1960s. If you were to create an all-time panel of Chicano rights activists, Rudy would share a table with Cesar E. Chavez. Seeing him up on stage, still full of life and energy and never apologizing for his commitment to doing the right thing was insprirational to everyone in attendance...even the non-Latinos!

Anthony Solana Jr. received the Legal Service Award (MALDEF is a legal advocate). Anthony is the founder, president, and chairperson of For People of Color, Inc., a 501(c)(3) tax-exempt nonprofit organization whose mission is to diversity the legal profession. He is also the author of "A Guide to the Law School Application Process For People of Color" and "A Guide to the Bar Examination For People of Color." Anthony received the award for his commitment to helping the community in which grew up. Coincidentally, the church he attended is a block away from Pan American Bank's East Los Angeles headquarters.

All in, it was a very inspiring event. No matter how much I think I've acheived and how much good I've done in this world, events like this humble you and let you know that there is always more that can be done. No matter what your cause or beliefs, get out there and make a difference!

Our Trip to Santa Ana

2009-11-11T07:47:00.000-08:00

On the evening of November 2, 2009, I visited the city council in Santa Ana, California.

In an act of appreciation, the city council presented to me, on behalf of Pan American Bank, a proclamation honoring our service to the City of Santa Ana for 40 years.

If you know about our bank you know that we are focused on serving the Latino markets in Southern California. When we set up shop in 1964 we started by establishing ourselves in East Los Angeles - Los Angeles County's Latino stronghold. Five years later we established a branch in Santa Ana - Orange County's Latino hub. Since then we have opened one more branch in East Los Angeles.

Something great that evolved from our interaction with the city council was a request to establish a community-based advisory council. The city council in Santa Ana has been taking a very proactive approach to improving the standard of living of their residents. Part of that initiative is what they call Bank on Santa Ana.

Pan American Bank jumped all over the Bank on Santa Ana program. This program, which seeks to convert the unbanked and under-banked segments of the City of Santa Ana, is in perfect alignment with our mission (see my post on our mission) since roughly 80% of the City of Santa Ana is comprised of Latinos.

As I stated above, the city council requested that Pan American Bank establish a board or committee comprised of community stakeholders that would work with the Bank to ensure that the residents of the City of Santa Ana have access to needed financial services. I thought it was a fantastic idea. Since our headquarters is located in Los Angeles County, an advisory board would ensure that there is always someone in Orange County looking out for community development opportunities and ensuring that needs are consistently being addressed.

We are now in the process of working with the community development officers at the FDIC, Federal Reserve and Office of the Comptroller of the Currency to develop a framework that will be successful in achieving these goals. We look to having the framework completed by mid-December and rolling out the program in Santa Ana at the start of the new year.

We are very excited for the new program and we're looking forward to working with the City of Santa Ana at a more intimate level. Since we are a true community bank, what is good for the City of Santa Ana is good for Pan American Bank.

What's Our Mission?

2009-11-08T12:11:00.000-08:00

Back in September I came across an opportunity to participate in a fantastic educational program at UCLA's Anderson School of Management. The program, which spanned roughly 90 hours over the course of 10 days, started with an in depth discussion on the mission of companies.

When I returned to the office I immediately began to explore our mission. According to Professor John M. De Figueiredo, mission is a broad statement of what the organization ultimately wants to become. Based on that definition, I sat down and began a formal exercise to define our formal mission statement.

The factors that I and my team evaluated in creating the mission statement included:

What is the vision of the Bank?

What will the Bank's business performance look like in the next three to five years if all we do is the same things, ONLY BETTER?

Where does the Bank need to head in the next five to ten years to be a strong performer?

After many revisions and discussions with staff and the Bank's Board of Directors, the following Mission Statement of Pan American Bank emerged:

"To transform and empower Latino communities through banking relationships built on trust, service, respect, communication, and guidance."

At the end of the process everyone was proud of our success and of our new mission statement.

Who Is Pan American Bank?

2009-11-08T11:29:00.001-08:00

Pan American Bank was established in East Los Angeles in 1964. When the Bank was originally established it was named Pan American National Bank. Later, the Bank converted from a national banking charter to a state banking charter, dropping the "national" from its name.

Pan American Bank was created by its founders specifically to serve the needs of Latinos in Los Angeles. While several people were involved in the founding of the Bank, the majority shareholder and driving force behind the Bank was former U.S. Treasurer Romana Acosta Banuelos.

A couple weeks ago the Bank celebrated its 45 year anniversary. The Bank has stayed true to its mission of serving the Latino community. In the early 1970's the Bank expanded into Santa Ana with the same mission. The Bank today has three offices, two in East Los Angeles and one in Santa Ana.

Introduction to the Pan American Bank Blog

2009-11-08T11:13:00.000-08:00

Welcome to the Pan American Bank blog. My name is Jesse Torres and I am the President and CEO of Pan American Bank.

I created this blog to share experiences we are having at the Bank. Along the way I'll share some of my personal experiences.

The goal of this blog is to let you to better understand who we are and what we do.