View source for Security Pacific Bank

{{short description|United States bank}}

{{more citations needed|date=January 2011}}

{{Infobox company
| name             = Security Pacific National Bank
| logo             = Security_Pacific_Bank_logo.svg
| logo_caption     = Logo, designed by [[Saul Bass]], 1966
| traded_as        = {{NYSE was|SP}}
| trading_name     = 
| former_name      = 
| type             = 
| genre            = 
| fate             = Merged into the [[Bank of America Corporation]]
| predecessor      = Security First National Bank
| successor        = Bank of America
| foundation       = 1967 (as Security Pacific National Bank)
| founder          = 
| defunct          = {{end date and age|1992|4|22}}
| location_city    = 
| location_country = 
| location         = [[Los Angeles, California]]
| locations        = 
| area_served      = Western U.S.
| key_people       = 
| industry         = [[Banking]]
| products         = 
| production       =
| services         = 
| homepage         = 
| parent           = 
| subsid           = [[Rainier Bancorp|Rainier Bank]]
}}
'''Security Pacific National Bank''' ('''SPNB''') was a large U.S. [[bank]] headquartered in [[Los Angeles|Los Angeles, California]]. It was acquired by [[Bank of America]] in 1992.

== History ==
[[File:Security Pacific Bank Building, Hollywood Blvd., California.jpg|thumb|[[Security Trust and Savings]], Hollywood Blvd., California]]
[[File:Security Pacific National Bank Building.jpg|thumb|Security Pacific National Bank Building in [[Downtown Long Beach]], constructed 1924<ref>{{cite news |last1=Van Dyke |first1=Jonathan |title=Downtown Security Pacific National Bank Converting To Condominums Above Federal Bar |url=https://www.gazettes.com/news/downtown-security-pacific-national-bank-converting-to-condominums-above-federal-bar/article_cbcde298-2d96-11e4-a066-001a4bcf887a.html |work=www.Gazettes.com |language=en}}</ref>]]

On September 1, 1868, Hellman, Temple and Co. opened their first bank branch in Los Angeles. The banking firm was the predecessor of [[Farmers and Merchants Bank of Los Angeles|Farmers and Merchants Bank]] (1870), which was the predecessor of Security First National Bank. The bank earned a reputation for aggressive business practices and benefited from economic and population growth in the [[Western United States]]. By the mid-20th century it had an international presence, and was ranked the fifth-largest [[bank]] in the [[United States]] and third-largest in [[California]] in terms of deposits.

In 1967, Security First National Bank bought Pacific National Bank of San Francisco and became Security Pacific National Bank.
In 1971, SPNB Security Pacific National Bank (SPNB) bought 69% of [[Bank of Canton]].
In 1975, Security Pacific Bank constructed a 55-story tower in downtown Los Angeles, now known as [[ARCO Center|Bank of America Plaza]].

In 1978, computer consultant [[Stanley Rifkin]] learned the electronic codes Security Pacific used to [[telegraph]] funds to other banks. On October 25 he stole $10,200,000 from a non-existent account, executing one of the largest [[bank robbery|bank robberies]] in history. He used the funds to buy some 115,000 [[Russia]]n [[diamond]]s in [[Switzerland]], which he smuggled back into the [[United States]] and attempted to sell, but he was captured. Security Pacific took ownership of the diamonds but received few offers for such a large quantity. Eventually it was forced to sell them on unfavorable terms to a [[Liechtenstein]] firm affiliated with the [[De Beers]] company.

On May 9, 1980, five men robbed the Security Pacific branch in [[Norco, California|Norco]], California. They were among the most heavily armed bank robbers in history, carrying [[semi-automatic firearm]]s, [[handgun]]s, and [[improvised explosive device]]s, and succeeded not only in stopping several patrol cars but forcing a [[San Bernardino, California|San Bernardino]] police helicopter to give up pursuit. By the end of the [[Norco shootout]], a police officer and two robbers had been killed, with the other three suspects arrested and sentenced to life in prison.

In 1984, the boards of SPNB and [[Bank of Canton]] announced that SPNB wanted to acquire the ordinary and preferred shares of the Bank of Canton it did not already own. The agreement stipulated that the management of Bank of Canton would remain in place and that Russell Fok would continue as [[chairman of the board]]. Furthermore, a company associated with Fok would be entitled, upon completion of the acquisition, to purchase a limited [[Equity (finance)|equity]] position in BoC. SPNB agreed to pay $59.31 per share for the 714,128 common shares (31%) that it did not already own for a total cost of about $42 million.

In 1985, a [[class action lawsuit]] against Security Pacific accused it of overcharging some 2,500 [[Trust (Law) USA|trust]] accounts going back to 1974.<ref>{{Cite web| title = McIntosh v. Mills| url =  https://casetext.com/case/mcintosh-v-mills| archive-url =  https://web.archive.org/web/20161122071818/https://casetext.com/case/mcintosh-v-mills| url-status =  dead| archive-date =  November 22, 2016}}</ref> Also in 1985, Security Pacific acquired The Arizona Bank.<ref>{{Cite web| title = Security Pacific buys Arizona bank| work = UPI| access-date = 2020-01-19| url = https://www.upi.com/Archives/1985/08/20/Security-Pacific-buys-Arizona-bank/8437493358400/}}</ref>

In 1986, SPNB acquired California Pacific National Bank, a small bank that primarily served Los Angeles' Chinese business community, for US$11.5&nbsp;million. Earlier, BoC had revealed plans for a major expansion in the United States, concentrating on the growing Asian community in California. SPNB also entered into talks with American Asian Bank. This Chinese ethnic bank operated four branches around San Francisco and four in the Los Angeles area.

In 1987, Security Pacific acquired [[Rainier Bancorp]], which served the Pacific Northwest.<ref name="ap-1987feb24">{{cite news |url=https://apnews.com/0d8493a65d18da7b59bf7ffe7b05fc16 |title=URGENT Security Pacific, Rainier Bancorp To Merge In $1.15 Billion Stock Swap |newspaper=[[Associated Press]] |date=February 24, 1987 |author=<!--Staff writer(s); no by-line.-->}}</ref>

In 1988, Security Pacific denied a job to [[Hacker (computer security)|hacker]] [[Kevin Mitnick]] for his failure to disclose prior convictions. Four days later, a false [[press release]] circulated stating that the bank had lost $400 million in the first quarter, hurting the bank's share price. The [[Federal Bureau of Investigation]] attempted to use this [[circumstantial evidence]] in their case against Mitnick, but no proof of a connection was ever uncovered. Mitnick, in particular, denied the allegation in his book ''Ghost in the Wires'', saying it was not his style, while admitting other crimes unrelated to the bank.

Also in 1988 SPNB completed the acquisition of Bank of Canton and renamed it Security Pacific Asian Bank. SPNB finally acquired American Asian Bank, controlled by individuals associated with the ailing Hong Kong–based Tung Group. (Earlier American Asian had acquired a portion of the failed American City Bank in 1983 and [[Toronto Dominion Bank]] of California in 1984).

The 1980s boom for a time sustained the bank, but its aggressive acquisition strategy, unfavorable [[financial engineering]] arrangements, and the 1990 [[recession]] and [[Southern California]] [[real estate]] crash devastated its loan portfolio and balance sheet. Banking regulators, concerned problems at Security Pacific could compound the emerging [[savings and loan crisis]], placed the bank under heightened scrutiny.

On April&nbsp;22, 1992, Security Pacific Bank merged with [[San Francisco]]–based [[BankAmerica]] (now called Bank of America),<ref name="oregonian92may">{{cite news|last=Blackmun|first=Maya|title=Merger will cut 100 jobs at banks|date=May 27, 1992|newspaper=[[The Oregonian]]|location=Portland, Oregon|page=D6}}</ref> a deal that was at the time one of the largest bank mergers in history. Federal regulators, however, forced the sale of Security Pacific's Washington subsidiary, [[Rainier Bank]], as the combination of Seafirst and Rainier would have given BankAmerica too large a share of the market in that state. The Rainier Bank branches were divided and sold off to West One Bancorp (now [[U.S. Bancorp]]) and [[KeyBank]].<ref>{{cite news | first=Michele | last=Matassa Flores | title=Key Bank, West One Finalize Purchases | date=April 2, 1992 | url =https://archive.seattletimes.com/archive/19920402/1484315/key-bank-west-one-finalize-purchases | work =Seattle Times | access-date = 2008-09-27 }}</ref> Later that year, BankAmerica expanded into Nevada by acquiring Valley Bank of Nevada.

In 1993, Bank of America changed Security Pacific Asian Bank's name to [[Bank of America (Asia)]]. In 1994 Arab-Malaysian Bank acquired Security Pacific Asian Bank operations in Malaysia.

In 2000, Robert H. Smith, Security Pacific's last chairman and [[CEO]], published a book called'' Dead Bank Walking: One Gutsy Bank's Struggle For Survival And The Merger That Changed Banking Forever'', which chronicled the merger with Bank of America.<ref>{{Cite book|title = Dead Bank Walking: One Gutsy Bank's Struggle For Survival And The Merger That Changed Banking Forever|isbn = 1886939330|last1 = Smith|first1 = Robert H.|last2 = Crowley|first2 = Michael K.|year = 1999}}</ref>

==New Security Pacific Bank==
A new Security Pacific Bank emerged in February 2005, the result of a name change by a bank formerly known as Network Bank USA and, prior to that, Golden Pacific Bank. The new Security Pacific Bank (which failed on November 7, 2008)<ref>{{cite news|publisher=CNN|title=2 more banks go belly-up|author=Catherine Clifford|url=https://money.cnn.com/2008/11/07/news/companies/bank_failure/index.htm?postversion=2008110721|date=2008-11-08}}</ref> had no relation to Bank of America or the former Security Pacific National Bank, although it did use a similar interlocking "S" logo as the former bank. After its closure, it was acquired by [[PacWest Bancorp|Pacific Western Bank]].

==References==
{{reflist|30em}}

==External links==
* {{cite news |url=https://www.latimes.com/archives/la-xpm-1992-04-22-fi-632-story.html |title=Security Pacific: A History |newspaper=[[Los Angeles Times]] |date=April 22, 1992 |first=Tom |last=Furlong}}
* {{cite web |title=Security-First National Bank of Los Angeles records |url=https://oac.cdlib.org/findaid/ark:/13030/kt0c6017pm/ |website=Online Archive of California |access-date=13 August 2021}}, Collection Number: 1577 (69 boxes), UCLA Library Special Collections, Charles E. Young Research Library — Mostly property appraisal files for loans in the greater Los Angeles area (ca. 1934-41).

{{Bank of America}}

[[Category:Defunct banks of the United States]]
[[Category:History of Los Angeles]]
[[Category:Bank of America legacy banks]]
[[Category:Banks disestablished in 1992]]
[[Category:Banks established in 1870]]
[[Category:American companies disestablished in 1992]]
[[Category:American companies established in 1870]]
[[Category: Companies formerly listed on the New York Stock Exchange]]