History
The Farmer's and Merchants Bank was founded by 23 prominent Los Angeles businessmen, with an initial capital of $500,000. The three largest subscribers were Isaias W. Hellman ($100,000), former California Governor John G. Downey ($100,000), and Ozro W. Childs ($50,000) who in later years became the founders of the University of Southern California. Other investors included Charles Ducommun ($25,000), I.M. Hellman ($20,000) and Jose Mascarel ($10,000.) The Farmers and Merchants Bank was the first incorporated bank in Los Angeles, founded in 1871 by John G Downey, the seventh governor of California and Isaias W. Hellman, a successful merchant, real estate speculator and banker, and brother of Hermann W. Hellman. Downey was named the first president. Isaias later served as president of the bank till his death in 1920.
I.W. Hellman, was a cautious lender, insisting that major borrowers have good character and provide good security. Its subsequent presidents, J.A. Graves (who had been Hellman's attorney) and Victor H. Rosetti, continued Hellman's conservative practices, with a large portion of the bank's capital constantly held in Treasury securities. As a result, the Bank survived every panic, from 1873 through the Great Depression. However, a one-branch downtown bank was eventually seen as not likely to continue to grow. In 1956, it merged with Security First National Bank, which became in later years Security Pacific National Bank, and ultimately was acquired by the Bank of America.
Read more about this topic: Farmers And Merchants Bank Of Los Angeles
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