Security Pacific, which reported total assets of $561.1 millionand deposits of $450.1 million, has been taken over by SanDiego-based Pacific Western Bank, which listed $4.4 billion inassets as of Sept. 30 and operates 60 branches throughout SouthernCalifornia. Security Pacific operated four branches, which willreopen today as branches of Pacific Western.

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Franklin Bank, which reported total assets of $5.1 billion andtotal deposits of $3.7 billion, has been taken over by ProsperityBank of Houston, which reported $6.78 billion in assets andoperated 129 branches as of Sept. 30. Franklin Bank operated 46offices, which will reopen today as branches of ProsperityBank.

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The FDIC estimates that the cost to its deposit insurance fundfor the two bank closings will be $210 million for Security Pacificand between $1.4 billion and $1.6 billion for Franklin Bank. TheSecurity Pacific that failed is not related to the former SecurityPacific Bank, also based in Los Angeles, which merged with Bank ofAmerica in 1992 in what was one of the country's largest bankmergers up until that time.

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Both Pacific Western Bank and Prosperity reported profits intheir third-quarter filings with the SEC, although in both casesthe profits declined. Pacific Western, through its holding companyPacWest Bancorp, posted earnings of $9.6 million and 35 cents pershare, down from $12.8 million and 47 cents per share in the secondquarter. The bank attributed the lower earnings mainly to higherprovisions for credit losses.

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Prosperity Bank's holding company, Prosperity Bancshares Inc.,reported earnings of $15.44 million and 33 cents per share for thelatest quarter, down from $23.84 million and 54 cents per share forthe same period in 2007. The decrease was primarily due to a$9.12-million after-tax charge on Fannie Mae and Freddie Macsecurities that have declined in value.

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