Closed Friday, February 7, 2003 · Torrance, Los Angeles County, California
Southern Pacific Bank
Southern Pacific Bank was the largest of the 3 bank failures in 2003. Its assets had shrunk 56% from their peak in the second quarter of 2000 by the last report before closing. It reported a net loss in four of its final eight reporting years.
On the books, 1995 to 2002
Total assets peaked at $2.1 billion. Equity capital went from 9.2% of assets in the first quarter of 1995 to 3.9% at the last report. By then 11% of its loans were 90 days or more past due or no longer accruing interest. The deepest annual loss, $118 million, was booked in 2000.
Size against the other 2003 failures
Total assets of each 2003 failure, log scale; Southern Pacific Bank in red.
Within California it ranks 37th by size of the 239 failures recorded since 1934. Across the failures of 2003, the median estimated loss came to 8.0% of assets. The next-largest failure of that year was First National Bank of Blanchardville of Blanchardville, Wisconsin ($34.5 million, loss 37% of assets). Every 2003 failure in the explorer.
Failures in California
The previous failure there was Monument National Bank of Ridgecrest, on June 2, 2000. The next was IndyMac Bank of Pasadena, on July 11, 2008. Los Angeles County has 87 failed banks on FDIC record since 1934. Closest in time: Pacific Thrift and Loan Company (1999), IndyMac Bank (2008), Security Pacific Bank (2008), PFF Bank & Trust (2008), Alliance Bank (2009).