OCC Terminates MOU with PacTrust Bank

Community banking

First PacTrust Reports Loss Despite Growth Spurt

Despite strong asset and deposit growth, First PacTrust Bancorp Inc. swung to a loss in the fourth quarter as the Irvine, Calif., company sharply increased its loan-loss provision to reflect both a surge in total loans and an increase in impaired loans.

By Alan Kline

March 15

The Office of the Comptroller of the Currency has lifted a memorandum of understanding with the banking unit of First PacTrust Bancorp (BANC) of Irvine, Calif.

Sandler O'Neill said in a company note that the memorandum's requirements were mostly operational in nature and did not require PacTrust Bank to maintain specific capital ratios or reduce nonperforming assets.

The August 2009 memorandum was terminated on Wednesday, the $990 million-asset company said Thursday in a regulatory filing.

First PacTrust reported in March a loss for 2011 after setting aside additional funds to support rapid organic growth. Its classified loans also grew.

For 2011, it lost $2.7 million, compared with a profit of $2.7 million in 2010.

Jackie Stewart

Executive Editor, American Banker Magazine

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