Pacific Bank preparing rights offering.

SAN FRANCISCO - Pacific Bank, a long-troubled San Francisco community bank, is set to raise $25 million in the next week by offering stock rights through Keefe, Bruyette & Woods Inc.

But industry sources said the bank is still in active discussions with a third party to recapitalize the $500 million-million bank, which is under regulatory orders to raise capital. A spokesperson for the bank confirmed the recapitalization is in the works, but declined further comment.

Pacific is one of a troika of San Francisco private banking organizations that were hit hardest by California's recession. Bank of San Francisco and Golden Gate Bank were both recapitalized by private investors this summer. This year through June, Pacific Bank lost $11.5 million.

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