SAN FRANCISCO--(Business Wire)--
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.
California Department of Financial Institutions
Alana Golden, 916-323-7012 or 916-322-5966
Public Information Officer
www.dfi.ca.gov
Copyright Business Wire 2008
