Pacific Bank, San Francisco's most troubled community bank, is set to raise, $30 million from U.S. and Asian investors to cure its capital crunch.
According to press reports, the $505 million-asset bank last Thursday notified regulators it had received commitments from 15 institutional and individual investors to buy $15 million in newly issued common stock. Another $15 minion will be raised in a stock rights offerings to both new and existing shareholders before yearend.
Pacific is subject to a consent order from the Office of the Comptroller of the Currency to raise at least $25 million by the end of this year.
Trade Financing in Asia
West Coast banking sources said the new investors are from the United States and Asia, where Pacific has run a trade financing business in recent years.
Pacific, which built its business around private banking for wealthy individuals in the late 1980s, lost more than $11 million in the first six months of 1993. Its nonperforming assets total $83.2 million, which at 16% of total assets is the highest nonperforming ratio of any. bank in California, according to Sheshunoff Information Services.
To improve its operations, Pacific in proxy materials said it will focus first on reducing its nonperformers, and plans to sell $17.5 million of foreclosed real estate by yearend.