San Francisco's Pacific Bank said it expects to report a net loss of $2.5 million this quarter because of turmoil in Asia and restructuring costs at home.

The $694 million-asset bank said Monday that it would boost loan-loss provisions by as much as $6.5 million to cover defaults of two loans made to customers with ties to Asia. It also announced that it would take a charge of $2.5 million to $3 million to pay for job cuts and branch closings in connection with its acquisition of Los Angeles-based Sterling Bank.

Pacific, which acquired Sterling last summer for about $12 million, is closing three branches and eliminating 40 jobs.

Michael Tun Zan, chairman and chief executive officer of Pacific Bank, said he had expected it to earn $2 million this quarter.

One customer that defaulted on a loan, a Hong Kong-based video game importer, recently liquidating his inventory and has not been heard from since, Mr. Tun Zan said. Another, a paper manufacturer in Hong Kong, was taken into receivership by a consortium of financial institutions, including a major Japanese bank.

"We are currently looking at our marginal credits in Asia," said Mr. Tun Zan, adding that Pacific has about $30 million of loans outstanding in Hong Kong.

Despite the losses, Pacific said it expects to post a profit of $3 million, or $1.05 per share, for the full year. The company is also awaiting shareholder approval of a $12 million share repurchase plan and a 2-for-1 stock split. A special vote will be held Dec. 29.

Two Indonesians who together owned 44.6% of the company sold their shares this summer.

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