The Bay Area Real Estate Journal
Pacific National Bank Going to FDIC
Submitted October 30, 2009, 2:29 PM
By Jon Peterson and Sharon Simonson
San Francisco-based Pacific National Bank is being eyeballed for takeover by federal authorities, according to several sources in the Silicon Valley and San Francisco commercial real estate industry.
The bank, which reported assets of $2.1 billion at midyear, has been in the news in recent weeks following a decision by the Hines company and the California Public Employees’ Retirement System to walk away from the Watergate office complex in Emeryville. CalPERS and Hines, via their National Office Properties LP, borrowed $152 million from Pacific National for the acquisition in 2006. The loan, which was refinanced in 2008, had not been paid down at the time of default, according to commercial real estate research firm Real Capital Analytics.
Pacific National is also a lender against Moffett Towers, the 1.8 million square-foot speculative office complex built by San Francisco’s Jay Paul Co. in Sunnyvale. The development has been completed for months but has failed to retain a single tenant.
In response to a reporter’s queries at the bank’s headquarters at 345 California Street in San Francisco on Friday morning, Patricia Theophilos, the bank’s chief credit officer, said Bryan Waters, president and chief executive officer of the bank, would not be available for comment at all on Friday. Richard Caldwell, executive vice president and chief lending officer of the bank, also would not be available, she said.
Asked directly if the FDIC were going to assume control of the bank, Theophilos said, “No comment.”
FDIC spokeswoman LaJuan Williams-Dickerson did not respond immediately to a telephone call or an email seeking comment.
At midyear, the bank reported an average of $1.6 billion in total loans outstanding during the previous quarter, according to public filings with the FDIC. Loans secured by commercial real estate at that time were $1.34 billion; loans secured by residential properties of one to four units exceeded $230 million. Past due and non-accruing real estate loans at that time were valued at $56.7 million. Real estate related charge-offs were $6.9 million, and real estate that the bank owned was valued at $26.6 million.
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