Pacific Western Bank, based in San Diego and with $4.6 billion in assets, said Nov. 10 it assumed control of four branches of Security Pacific Bank, a Los Angeles-based bank seized by federal regulators Nov. 7.
Pacific Western said it paid $4.8 million or a 2 percent premium on $239 million in core deposits held by Security Pacific. The remaining deposits, some $188 million in brokered deposits, were retained by the Federal Deposit Insurance Corp. and subject to readjustment.
The bank’s loans were also retained by the FDIC.
In a terse announcement at the close of business Nov. 7, the state Department of Financial Institutions said Security Pacific was closed because of inadequate capital. The bank had total assets of $510 million as of Sept. 30.
DFI said it had been monitoring Security Pacific (no relation to Security Pacific National Bank that was acquired by Bank of America in 1992) and had ordered it to increase its capital reserves to a safe and sound level, but efforts by the bank were unsuccessful.
On Nov. 7, the FDIC also took over Franklin Bank in Houston, making the total seized this year to 19 commercial banks.
, Mike Allen