November 07, 2008
State closes Security Pacific Bank
The 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.