State Closes Security Pacific Bank
(San Francisco, CA) – California Department of Financial Institutions (DFI) announced today that regulators have closed Security Pacific Bank, citing inadequate capital.
As of October 31, 2008, Security Pacific Bank, located in Los Angeles, had total assets of approximately $510 million and total deposits of approximately $440 million. The DFI has been closely monitoring the bank and had ordered it to increase its capital reserves to a safe and sound level. But efforts by the bank to do so were unsuccessful.
Immediately following the closure, the DFI named the Federal Deposit of Insurance Corporation (FDIC) as receiver of the bank. Depositors of Security Pacific Bank are fully protected by the FDIC. For information about FDIC coverage limits and requirements, visit www.fdic.gov or call toll-free 1-877-ASK-FDIC.
All branches of Security Pacific Bank will reopen on Monday with no disruption in service. Over the weekend, depositors of Security Pacific Bank can access their funds by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
DFI supervises over 700 state financial institutions. Maintaining the integrity of financial services remains the primary mission of the Department. The DFI is responsible for administering state laws regulating state-licensed financial institutions: banks, credit unions, industrial banks, trust companies, offices of foreign banks, issuers of travelers’ checks and payment instruments (money orders), and money transmitters. In addition to posting information about licensees, the DFI Web site features consumer tips on a variety of financial topics. DFI reports to Business, Transportation & Housing Agency Secretary Dale E. Bonner and Gov. Arnold Schwarzenegger.