First Business Bank of San Diego has agreed to buy
The $105 million-asset First Business would add eight branches to the three it has. The bank plans to adopt the 1st Pacific name.
During the fourth quarter, 1st Pacific's $450 million-asset bank fell below the regulatory threshold for well-capitalized institutions, and at the end of March the bank had a total risk-based capital of 8.51% and a Tier 1 risk-based capital ratio of 5.98%.
1st Pacific Bank's net chargeoffs in the fourth quarter equaled 12.39% of total loans; the losses were largely from construction and development and commercial real estate credits.
First Business, on the other hand, had a healthy total risk-based capital ratio of 23.75% and a leverage ratio of 16.85% at the end of June. Its principal shareholder,
The deal for 1st Pacific Bancorp is expected to close in the fourth quarter.