Expansion continues
Cross-network referrals
Rick Arredondo
production.' Last year RNA focused on
increasing cross-network cooperation
and strengthening the network, with an
eye toward the long term growth of the
overall Rabobank entity in the US. Loan
growth was mainly in Commercial Real
Estate and agricultural lending, and
partly due to Rabo AgriFinance (RAF)
booking a substantial number of its loans
with RNA. 'Our deposit growth was
achieved through a new brokered CD
product offered through Rabo Securities
(see the story on page 10), as well as
through new innovative products offered
through our Community Banking
Division,' Arredondo says.
Ongoing acquisitions and expansion will
position RNA to serve more customers
across an even broader geography.
Rabobank is on track to complete the
acquisition of Community Bank of Central
California in early February and then
merge it with RNA, yielding combined
assets of USS 4.3 billion. There's also a plan
to increase the number of branches - 39
after the acquisition - by three to five per
year. Sites will be chosen both within
RNA's existing footprint and in new
markets in Sacramento, California's Central
Coast, San Luis Obispo and Ventura
county. 'We have an appetite for more
acquisitions, if the opportunities fit into
our expansion strategy,' Arredondo says.
Rabobank's commitment to cross-
network cooperation benefits clients and
contributes to growth. In February 2005,
RNA committed its largest loan to date
after Marco Krapels, Executive Director for
Corporate Banking in Rabobank
International's (Rl) San Francisco office,
referred the Scholle Corporation office
complex project to RNA.
The Scholle Corporation is best known as
a maker of 'bag-in-box' packaging used
for products such as wine. Krapels visited
the company for business development
purposes and learned it was looking into
building a new office facility, says RNA
Executive Vice President and Commercial
Real Estate Division Manager Keith Goff.
'Lizz Hund, then Managing Director of Rl
San Francisco, knew RNA had expertise in
commercial real estate finance,' Goff
explained. So Rl San Francisco referred the
project to RNA in September 2004. When
Krapels moved to London to head RI's
Corporate Market Europe group, Brad
Scott, then Relationship Manager and
Executive Director of Rl San Francisco
(now Managing Director), took over as
Scholle's primary contact.
RNAcompeted with Bank of America
and ultimately won a USS 78 million
construction-to-permanent loan. This is
the largest loan we've committed,' says
Goff. 'Rl has also obtained a piece of the
Scholle business. It's an example of how,
when business units recognise their
limitations with regards to products and
industry knowledge and know where to
make a referral, Rabobank benefits.' And
so do clients.
The Word 23
