State Closes 1st Pacific Bank of California

(San Francisco, CA) – The California Department of Financial Institutions (DFI) today announced that regulators have closed 1st Pacific Bank of California citing inadequate capital and other material weaknesses.

As of April 30, 2010, 1st Pacific Bank of California, a state-chartered Federal Reserve member bank located in San Diego, had total assets of approximately $312 million and total deposits of approximately $291 million. DFI 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 Insurance Corporation (FDIC) as receiver of 1st Pacific Bank of California. The FDIC has accepted a bid from City National Bank to acquire the assets and liabilities of 1st Pacific. Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-591-2820.

All branches of 1st Pacific Bank of California will reopen on Monday as branches of City National Bank with no disruption in service. Over the weekend, 1st Pacific Bank’s depositors can access their insured deposits 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 and consumer brochures in seven languages. DFI reports to Business, Transportation & Housing Agency Secretary Dale E. Bonner and Governor Arnold Schwarzenegger.

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