Failure of Southern Pacific Bank in California (Feb. 7th):
<<Southern Pacific, with total assets of $1.0 billion, was closed today by the California Commissioner of Financial Institutions, and the FDIC was named receiver.
Beal Bank has agreed to assume approximately $834.0 million of insured deposits of the failed bank. At the time of closure, Southern Pacific had approximately $30.7 million in deposits in 938 accounts that exceeded the federal deposit insurance limit.
Beal Bank has agreed to pay the FDIC a premium of $500,000 to assume the insured deposits and purchased approximately $201.5 million of the failed bank's assets. [...]
The FDIC estimates the cost of this transaction to the Bank Insurance Fund will be $134.5 million. Southern Pacific is the first failure of an FDIC-insured institution this year, and the first in California since Monument National Bank, Ridgecrest, was closed on June 2, 2000.>>
These guys were into all kinds of fun stuff:
<<Southern Pacific Bank (the "Bank" or "SPB") is a California-chartered industrial bank and is subject to the provisions of the California Financial Code applicable to commercial banks and the related regulations of the Department of Financial Institutions ("DFI"). The Bank is a wholly owned subsidiary of Imperial Credit Industries, Inc. ("ICII" or "shareholder"). The Bank's deposits are insured by the Federal Deposit Insurance Corporation ("FDIC") to the extent permitted by law, and the Bank is subject to certain provisions of the Federal Deposit Insurance Act and regulations of the FDIC. The Bank's primary businesses are centered in four operating divisions: Coast Business Credit, Income Property Lending Division, Loan Participation and Investment Group, Lewis Horwitz Organization and in its wholly owned subsidiary Imperial Warehouse Finance, Inc., formerly PrinCap Mortgage Warehouse, Inc. 2. Operating Activities General Business Activities Imperial Credit Industries, Inc. is a diversified commercial lending, financial services, and investment banking holding company with consolidated assets of $2.1 billion as of December 31, 2000. ICII was incorporated in 1991 and its headquarters are located in Torrance, California. Beginning in 1994, ICII and the Bank expanded several existing businesses and commenced several new businesses, including, commercial mortgage banking and business lending. The Bank's loans and leases by operating segments consist primarily of income producing property loans and business lending, including equipment leasing, asset-based and cash stream lending, film and television productions loans, and participations in nationally syndicated commercial loans. The Bank solicits loans and leases from brokers on a wholesale basis and originates loans directly with borrowers. The majority of the Bank's loans and leases are funded by FDIC insured deposits. Coast Business Credit Coast Business Credit ("CBC"), a division of SPB, was acquired from Coast Federal Bank in 1995. CBC is the asset-based and cash stream lending division of our principal subsidiary SPB, that makes revolving lines of credit and term loans available to growth companies in manufacturing, distribution, technology, service, telecommunications and retail industries. CBC is headquartered in Los Angeles, California, and conducts its lending throughout the United States. At December 31, 2000 CBC had total commitments of $1.4 billion and gross loans outstanding of $752.9 million, respectively. At December 31, 1999 CBC had total commitments of $1.4 billion and gross loans outstanding of $748.1 million, respectively. Income Property Lending Division The Income Property Lending Division (''IPL'') was formed in February 1994 to expand our apartment and commercial property lending business. As of December 31, 2000, IPL had 6 loan origination offices in California, Illinois, Utah and Florida. At December 31, 2000 and 1999, IPL's gross loans outstanding were $364.2 million and $254.1 million, respectively. For the year ended December 31, 2000 and 1999, IPL originated $235.9 million and $339.7 million of loans, respectively. >> |
