SAN DIEGO - First National Corp. of San Diego, parent of First National Bank, said it has reached an agreement to settle claims against it by Pioneer Mortgage investors.
Pending approval of courts, First National Corp. will pay $750,000 while admitting no fault, liability, or wrongdoing by any party. It said it will take a charge of $425,000 against fourth-quarter earnings, which is in addition to a previous $500,000 provision that was used in part for legal fees.
"It was in First National's best interest to get this litigation settled," said Robert Richley, president and chief executive officer. "Our objective is to recapitalize the bank as quickly as possible." Its leverage capital ratio was 4.32% as of Sept. 30.
