Bank of San Francisco Needs Capital
Bank of San Francisco is operating under a memorandum of understanding with state regulators and the Federal Deposit Insurance Corp. requiring the bank to raise capital and trim real estate exposure.
The memorandum was disclosed by the parent company, Bank of San Francisco Co., in a quarterly report filed with the Securities and Exchange Commission.
The company, with $408 million in assets, reported a $9.95 million loss for the 1991 third quarter, reducing shareholders' equity to $16.05 million, 38% below the June 30 level. The result was due primarily to a special $10.5 million provision for loan losses during the period.
Shift in Bank Leadership
The bank's nonperforming assets, mainly real estate construction credits, totaled $49.9 million on Sept. 30, equaling 15.1% of loans plus foreclosed property.
In October, the company named vice chairman Thayer T. Prentice to be chairman, chief executive, and president of the bank. Donald R. Stephens, who previously served as the bank's chairman and chief executive, resigned those posts but remained chairman and chief executive of the holding company.