5 Questions: Dan Yates, President and CEO of Regents Bank San Diego
Dan Yates is one of the original founders of Regents Bank over 10 years ago. Regents Bank San Diego has offices in La Jolla, Downtown San Diego, El Cajon, Carlsbad and in Vancouver, WA.
Q: How would you assess 2011 in terms of the recovery for medium-large size companies?
A: It’s been a challenging year for many of our clients. Companies are accumulating cash as they reduce inventory levels, trim staff, and hold off on making capital expenditure investments until they are more positive about the economic environment. The Federal Reserve has made some recent statements that suggest it is likely to keep short-term interest rates near zero into 2014 or beyond, to bolster the fragile economic recovery. While the low interest rate environment does not speak well for the strength of the modest recovery we are experiencing, it is creating what amounts to a refinancing boom amongst businesses that own their corporate facilities and are interested in refinancing existing loans in an effort to reduce interest expense and increase business cash flows. Some business owners are exploring purchasing commercial real estate for the first time in years as they transition away from leasing their facilities.
Q: What are your thoughts on the San Diego economy in 2012?
A: I believe unemployment levels will remain high throughout the year and we’ll see continued sluggishness in the local economy, driving consolidation in many industries through mergers and acquisitions, including the banking industry. I am optimistic that we will see a stronger economic environment in the early part of 2013 but anticipate that 2012 will look much like 2011 in what some refer to as the new normal. As with all economic cycles there will be numerous exceptions in particular industry niches where we will find success stories. Companies that have survived the past couple of years have either learned how to operate on a more streamlined basis or are able to “reinvent themselves” through innovation, new strategic approaches, etc., to enable long term survivability.
Q: Any advice to business owners for 2012?
A: Yes, continue to invest time working “on your business, not just in your business”. Spend time with your key professional advisors and your executive team, strategizing to identify new avenues to boost revenues, seeking out opportunities to reduce overhead costs, streamline whenever and wherever possible in an effort to become more efficient, and strive to identify potential savings in your supply chain. Many companies will excel by identifying new niche markets for their products and services; they will need to be ever more innovative including taking advantage of new technologies. Doing business the way you always have may not be an option if the economic environment continues on this path long term as we all experience this so called “new normal”. Working harder is probably not going to be enough to get it done. Working smarter on improving every aspect of your business is the ticket to long term prosperity for your company.
Q: What was the biggest news for Regents Bank in 2011?
A: Definitely our partnering with Grandpoint Capital, which is scheduled to close in January 2012. Our new affiliation with Grandpoint Capital and Grandpoint Bank will enable Regents Bank to expand existing relationships and attract new clients as we will have access to expanded lending limits and we will also be able to offer new products and services to our clients. This partnership assures our clients that Regents Bank’s financial stability remains quite sound and we are a safe haven for clients to deposit excess funds with. We are also optimistic that we will be able to access capital from our new holding company to make potential acquisitions of other local banks.
Q: What are the Yates Family plans for the holidays?
A: This is an exciting time for the Yates family. We have a number of nephews that have been away from home serving in the military for the last few years and this is the first time in the past 4-5 years that we will all be together for Christmas. We are planning a big gathering and reunion celebration. We’re very happy about that.
Posted on December 23, 2011, in Employees, Regents Bank and tagged commercial real estate, Dan Yates, Federal Reserve, Grandpoint Bank, Regents Bank San Diego. Bookmark the permalink. Leave a comment.