Security Pacific Bank
Former major California-based bank that expanded across the western United States before merging with BankAmerica in 1992.
Last updated August 22, 2026
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Overview
Security Pacific Bank, historically known as Security Pacific National Bank, was a major American banking institution headquartered in Los Angeles. Its institutional lineage reached back to the banking firm Hellman, Temple and Co., which opened in Los Angeles in 1868. That business became Farmers and Merchants Bank in 1870 and later contributed to the development of Security First National Bank. Through economic expansion, population growth, and an assertive acquisition program, the institution became one of the largest banks in California and a significant bank in the United States. The name Security Pacific National Bank was adopted in 1967 after Security First National Bank acquired Pacific National Bank of San Francisco. The transaction gave the institution a broader California identity and supported its expansion beyond its original Southern California base. During the following decades, the bank developed a wide-ranging commercial and retail banking business, including deposits, lending, trust services, and services for businesses and households. It also pursued international and ethnic-market opportunities. In 1971 it acquired a majority interest in Bank of Canton, and in the 1980s it expanded through acquisitions involving banks in Arizona, California, the Pacific Northwest, and Asian-American communities. Bank of Canton was ultimately renamed Security Pacific Asian Bank after the parent completed its acquisition of the remaining shares in 1988. Security Pacific's corporate profile was reinforced by its Los Angeles headquarters development. In 1975 it completed a 55-story tower in downtown Los Angeles, a landmark later known as Bank of America Plaza. By the middle of the twentieth century, the institution had gained an international presence and was described as the fifth-largest U.S. bank and third-largest California bank by deposits. The bank's expansion created substantial exposure to commercial real estate and other cyclical lending. Its aggressive acquisition strategy and complex financial arrangements coincided with the end of the 1980s economic boom. The 1990 recession and the Southern California real-estate downturn weakened the institution's loan portfolio and balance sheet. Regulators increased scrutiny because difficulties at the bank could have broader implications during the savings-and-loan crisis. Security Pacific was ultimately acquired by San Francisco-based BankAmerica on April 22, 1992, in a transaction regarded at the time as one of the largest bank mergers in history. Regulatory requirements led to the divestiture of the bank's Washington subsidiary, Rainier Bank, because the combined company would otherwise have held too large a share of the Washington market. After the merger, the legacy brand was progressively retired. Security Pacific Asian Bank was renamed Bank of America (Asia) in 1993, while its Malaysian operations were sold to Arab-Malaysian Bank in 1994. Robert H. Smith, the bank's final chairman and chief executive, later documented the institution's decline and merger in his 2000 book, Dead Bank Walking: One Gutsy Bank's Struggle For Survival And The Merger That Changed Banking Forever. A separate institution adopted the Security Pacific name in 2005 after changing its name from Network Bank USA; that bank was unrelated to the former Security Pacific National Bank and failed in 2008. The original Security Pacific banking brand therefore remains defunct and is part of the historical lineage absorbed into Bank of America.
History
Security Pacific Bank's history began with the development of commercial banking in Los Angeles after the Civil War. Hellman, Temple and Co. opened a Los Angeles branch on September 1, 1868. The firm became Farmers and Merchants Bank in 1870, an institutional predecessor of Security First National Bank. The bank benefited from the growth of Los Angeles and the wider western United States, building a reputation for assertive business practices and eventually developing a substantial regional and international presence. A major corporate turning point came in 1967, when Security First National Bank acquired Pacific National Bank of San Francisco and adopted the name Security Pacific National Bank. The new identity reflected a broader California footprint. In 1971 the bank purchased 69 percent of Bank of Canton, extending its involvement in international and Asian-oriented banking. Its Los Angeles scale was symbolized by a 55-story downtown tower completed in 1975, now known as Bank of America Plaza. Security Pacific experienced two notable security incidents in the late 1970s and early 1980s. In 1978, consultant Stanley Rifkin used electronic transfer codes obtained from the bank to remove approximately $10.2 million from a fictitious account. He converted much of the money into Russian diamonds, was arrested, and the bank eventually disposed of the diamonds on unfavorable terms. In 1980, the Norco, California, branch was the site of an exceptionally heavily armed robbery and ensuing shootout. A police officer and two robbers died; the remaining suspects were arrested and received life sentences. The bank continued to grow through acquisitions. In 1984 it agreed to buy the outstanding shares of Bank of Canton that it did not already own. The following year it acquired The Arizona Bank. In 1986 it purchased California Pacific National Bank, which primarily served Los Angeles's Chinese business community, and explored further expansion involving American Asian Bank. In 1987 it acquired Rainier Bancorp, giving it an important presence in the Pacific Northwest. In 1988 it completed the Bank of Canton acquisition and renamed that operation Security Pacific Asian Bank. It also acquired American Asian Bank, which had itself been involved in earlier transactions concerning failed and regional banking institutions. Expansion also brought legal and reputational difficulties. In 1985 a class-action lawsuit alleged that the bank had overcharged approximately 2,500 trust accounts over a period beginning in 1974. In 1988, after the bank declined to hire hacker Kevin Mitnick because he did not disclose prior convictions, a false press release claimed that Security Pacific had suffered a $400 million quarterly loss. The report affected the bank's share price. The FBI considered circumstantial evidence concerning the episode in its case against Mitnick, but no connection was proven, and Mitnick denied responsibility for the bank-related incident. The late-1980s economic boom temporarily supported Security Pacific, but its acquisition strategy and exposure to vulnerable lending markets left it susceptible to the 1990 recession and the Southern California real-estate crash. Deteriorating loans and balance-sheet pressures led regulators to monitor the bank closely, especially because its problems emerged alongside the savings-and-loan crisis. On April 22, 1992, Security Pacific merged with BankAmerica. The transaction was one of the largest U.S. banking mergers at the time. Regulators required BankAmerica to sell Rainier Bank's Washington subsidiary, whose branches were divided between West One Bancorp and KeyBank. Security Pacific's remaining identity was subsequently absorbed into Bank of America. Its Asian operation became Bank of America (Asia) in 1993, and its Malaysian operations were sold to Arab-Malaysian Bank in 1994. A separate institution later used the Security Pacific name after changing from Network Bank USA in 2005. It had no corporate relationship with the former Security Pacific National Bank and failed in 2008. This later episode should not be conflated with the original bank's 1992 acquisition by BankAmerica.
- 1994
Malaysian operations sold
[1]Arab-Malaysian Bank acquired the former Security Pacific Asian Bank operations in Malaysia.
- 1993
Asian subsidiary renamed
[1]Security Pacific Asian Bank became Bank of America (Asia).
- 1992
Merged into BankAmerica
[1]Security Pacific merged with BankAmerica, ending the original bank's independent existence.
- 1990
Recession and Southern California real-estate downturn intensify pressures
[1]Economic contraction and falling Southern California real-estate values damaged the bank's loan portfolio and balance sheet.
- 1988
Asian banking expansion completed
[1]Security Pacific completed its acquisition of Bank of Canton, renamed it Security Pacific Asian Bank, and acquired American Asian Bank.
- 1987
Rainier Bancorp acquired
[1]The acquisition expanded Security Pacific into the Pacific Northwest.
- 1985
Arizona Bank acquisition and trust-account lawsuit
[1]Security Pacific acquired The Arizona Bank and faced a class-action case alleging overcharges on thousands of trust accounts.
- 1978
Electronic-funds theft
[1]Stanley Rifkin exploited electronic transfer credentials associated with the bank and stole approximately $10.2 million.
- 1975
Downtown Los Angeles tower completed
[1]The bank completed a 55-story headquarters tower, later known as Bank of America Plaza.
- 1971
Majority stake in Bank of Canton acquired
[1]Security Pacific acquired 69 percent of Bank of Canton.
Products and positioning
A large, full-service California bank positioned around regional scale, commercial finance, branch banking, and expansion across the western United States.
Consumer banking
Retail banking
Security Pacific operated a conventional branch-banking business for consumers, accepting deposits and providing household financial services through its California and broader western network. Specific historical product names and terms are not identified in the supplied reference material.
Business banking
Commercial and corporate banking
Commercial banking was central to the institution's regional role. The bank served businesses and larger organizations with deposits, credit, and related banking services. Its expansion and subsequent difficulties were closely connected to commercial and real-estate lending exposure.
Fiduciary services
Trust services
The bank administered trust accounts and related fiduciary services. These activities were the subject of a 1985 class-action lawsuit alleging that approximately 2,500 accounts had been overcharged over a period beginning in 1974.
International and community banking · 1988
Security Pacific Asian Bank
This affiliated banking operation developed from Bank of Canton and supported Security Pacific's Asian and international strategy. It was renamed Bank of America (Asia) in 1993 after the parent merger, while its Malaysian operations were sold in 1994.
Controversies
1988
False loss announcement and Mitnick allegations
A false press release claimed that Security Pacific had lost $400 million in a quarter, affecting its share price. The FBI examined circumstantial evidence in connection with Kevin Mitnick, but no link to the release was proven and Mitnick denied responsibility.
1985
Trust-account overcharge lawsuit
A class-action lawsuit alleged that Security Pacific had overcharged approximately 2,500 trust accounts dating back to 1974. The supplied reference does not establish the final legal outcome.
Brand decisions
1992
Merge with BankAmericaM&ABackground
A recession, Southern California real-estate decline, loan losses, and regulatory concern weakened Security Pacific's independent position.
Action taken
Security Pacific merged with BankAmerica on April 22, 1992.
Aftermath
The Security Pacific brand was retired within the combined organization. Regulators required Rainier Bank's Washington operations to be sold, with branches divided between West One Bancorp and KeyBank.
1988
Complete Bank of Canton acquisitionM&ABackground
Security Pacific already held a majority interest in Bank of Canton and wanted full control of the institution.
Action taken
Security Pacific acquired the remaining shares and renamed the bank Security Pacific Asian Bank.
Aftermath
The operation was later renamed Bank of America (Asia), and its Malaysian activities were sold in 1994.
Price for 714,128 outstanding common shares. $59.31 per share; approximately $42 million total (1984 agreement)
1967
Adopt a broader Security Pacific identityStrategyBackground
Security First National Bank acquired Pacific National Bank of San Francisco and sought a name reflecting its expanded California footprint.
Action taken
The institution became Security Pacific National Bank.
Aftermath
The new identity became the basis for the bank's subsequent regional expansion.
Sources2 sources
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