This week in Santa Cruz County business: Santa Cruz County Bank's merger, local tourism flying high and Humble Sea’s trend-bucking expansion

Quick Take

A merger between two regional banks, big numbers for Santa Cruz County tourism and Humble Sea Brewing taking on San Francisco lead off Jessica M. Pasko's weekly look at local business. You'll also find other notes, numbers, dates and events to know.

Each week, we’re taking a closer look at the movers and shakers, the growth of industries, and what’s really driving the Santa Cruz County economy. I’ll be spotlighting some of the biggest areas for opportunity, updates on local development and all things underpinning the regional business scene, each Wednesday.

Got ideas? Send them my way to news@lookoutlocal.com with “Business News” in the subject line.

Santa Cruz County Bank, Salinas-based 1st Capital Bank announce planned merger

Santa Cruz County Bank and 1st Capital Bank will be merging later this year.

The combined entity, which will be headquartered in Santa Cruz, will be led by Krista Snelling, CEO and president of Santa Cruz County Bank and its holding company, West Coast Community Bancorp.

Santa Cruz County Bank currently operates eight branches: five in Santa Cruz County as well as locations in Monterey, Salinas and Cupertino. 1st Capital runs five branches, in Salinas, Monterey, King City, Santa Cruz and San Luis Obispo. The merger will expand Santa Cruz County Bank’s geographic footprint and give the company increased lending capacity.

The joint company will be rebranded under a new name, but that’s still to be determined and won’t happen until the merger receives final shareholder and legal approval, which is expected to happen later this year.

The move comes as regional banks around the country have struggled amid economic uncertainty and higher interest rates. Santa Cruz County Bank marked its 20th anniversary earlier this year. Snelling attributes its success to its strong community ties, which 1st Capital also brings to the table.

The merger will likely result in potential layoffs and possible branch closures as the two banks consolidate, but those decisions are still in the works, according to Snelling.

Read more about the merger here.

Santa Cruz County tourism industry reaches new high

Santa Cruz County tourism spending has bounced back from pre-pandemic years. In fact, it made the biggest gain in travel spending among all 58 counties in the state, according to a new report released by Visit California.

In 2023, visitors spent $1.4 billion in Santa Cruz County, marking a nearly 35% increase since the start of the pandemic.

Visit Santa Cruz County, the private, nonprofit marketing group for local tourism, has made significant efforts to boost tourism locally, including expanding to new areas. That’s included amping up efforts to promote the county as a tourism destination in both domestic and international markets.

Terence Concannon, the new CEO of Visit Santa Cruz County. — Terence Concannon took over as CEO of Visit Santa Cruz County last August. Credit: Kevin Painchaud / Lookout Santa Cruz

The county’s ample access to outdoor activities has been an especially significant draw over the past few years, according to the organization’s executives. In an interview with Lookout late last year, CEO Terence Concannon and Communications Director Christina Glynn said the organization has been doing more outreach and marketing in the Midwest, East Coast, Mexico and the Netherlands, among other places.

Statewide, travel spending reached a record high of $150.4 billion in 2023, surpassing the previous record of $144.9 billion set in 2019. That includes money spent on hotels and lodging, transportation, rental cars, restaurants and more.

Read more here.

State’s unemployment rate remains at 5.3% for third consecutive month

California’s unemployment rate remained at 5.3% in April, the highest in the country and up from 4.5% in April 2023. However, the state also saw continued employment growth, with five of the state’s 11 industry sectors posting job gains in April. Private education and health services added 11,900 new jobs, the largest month-over-month increase for a fourth consecutive month. Other sectors that added jobs were trade/transportation/utilities, hospitality and leisure, government and mining/logging.

Locally, the unemployment rate dropped slightly, decreasing from 7.5% in March to 6.7% in April. The county added 1,900 jobs between March and April; the bulk of those (1,300) were farm jobs. The hospitality sector also saw a boost, with 400 new jobs added in advance of the summer tourism season.

ICYMI: Humble Sea Brewing opening sixth location, this time in San Francisco

Santa Cruz-based Humble Sea Brewing Co. announced last week that it will open a sixth spot, this time at tourist haven Pier 39 in San Francisco. As Lily Belli reports, the company’s expansion comes as the craft beer industry faces hard times around the country. In addition to the brewery’s flagship tasting room on the Westside of Santa Cruz, it also operates locations in Alameda, Pacifica, Felton and on the Santa Cruz Wharf.

Ch-ch-changes: Openings, closings and other developments

Central Coast nonprofit leader appointed to state commission: Tahra Goraya, president and CEO of the Monterey Bay Economic Partnership, has been appointed to the California Commission on Asian and Pacific Islander American (APIA) Affairs. The commission was established in 2002 to advise state lawmakers on how to address the views, needs and concerns of the state’s APIA communities.
UC Santa Cruz hires a new associate vice chancellor: Laura Arroyo will begin as the university’s associate vice chancellor for colleges, housing and educational services this July. She joins UC Santa Cruz from the University of Colorado at Boulder. In her role, Arroyo will oversee residential and dining programs and services for students.
Santa Cruz Museum of Art and History leader to depart: MAH Executive Director Robb Woulfe will be stepping down from his position within the next nine months. In the wake of his resignation, museum leaders will be holding a series of feedback sessions to collect public input, Wallace Baine reported this week. Woulfe held the position for more than four years, taking the reins from Nina Simon.

Got hires, promotions, or departures to report? Send them to news@lookoutlocal.com with the subject line “Career changes.”

Looking at the numbers

$6.6 million: That’s the asking price for an entire town in Southern California. Campo is an unincorporated community of less than 3,000 residents and located just a mile from the U.S.-Mexican border. The listing includes 18 buildings and 95,000 square feet of property.

Save the date

Thursday, May 23: The Aptos Chamber of Commerce will hold its annual Par-Tee on the Green Golf Scramble and networking event at Seascape Golf Club. Check-in begins at 11 a.m.; it’s $180 per player. More info here.
Thursday, May 23: Santa Cruz Works hosts its next CEO Works luncheon with author and corporate advisor Maisie Ganzler from 11:30 a.m. to 1:15 p.m. at the Hotel Paradox in Santa Cruz. The topic will be “A Roadmap for Ethical Leadership and Market Advantage.” Register here.
Wednesday, May 29: The Cocoanut Grove at the Santa Cruz Beach Boardwalk hosts the annual Santa Cruz Launchpad event from noon to 7 p.m. The event, organized by Santa Cruz Works, couples a job fair with a student business pitch competition. Details and tickets available here.
Thursday, May 30: The Pajaro Valley Chamber of Commerce will hold its monthly mixer from 5 to 7 p.m. at the Alladin Nursery and Gift Shop, 2905 Freedom Blvd., Corralitos. Here’s more information.
Saturday, July 27: The Pajaro Valley Chamber of Commerce hosts its 2024 awards dinner and auction at the Santa Cruz County Fairgrounds in Watsonville. Details and registration here.