SAN FRANCISCO -- Pacific Bank postponed its 1993 annual meeting, originally scheduled for Thursday, after giving investors who bought $10.7 million of common stock and warrants in a recent private placement the right to return the securities.
The troubled bank made the offer after being forced by the Office of the Comptroller of the Currency to add $6.1 million to its $1.4 million of reserves for the fourth quarter.
The agency said the private placement offering contained material inaccuracies" regarding the bank's financial conditions at yearend.
Pacific Bank, which has $700 million of assets, said its capital will be reduced to the extent purchasers in the private placement accept the rescission offer.
It added that it could fall out of compliance with a consent order signed with the Comptroller's office and with the minimum capital ratios applicable to it. The bank had total risk-based capital of 8.34% at March 31 and Tier 1 risk-based capital of 7.01%. Pacific's directors, who bought $2.85 million of the $10.7 million offering, have said they will retain their shares and warrants.