$1.5-Million Pacific Inland Loss Blamed on Loan Move

Pacific Inland Bancorp in Anaheim said it expects to report a loss of $1.5 million for 1985 because of a move this week by its banking subsidiary to set aside that amount for potential loan losses.

The bank holding company said the decision to set aside $1.5 million in Pacific Inland Bank’s loan-loss reserve to “provide for the doubtful collection” of three loans to two small businesses was a “prudent and conservative” step and should not be construed as an indication of any weakness in the bank’s loan portfolio. The bank itself should show a profit of between $80,000 and $200,000 for 1985, officials said.

Final 1985 results for the bank and its parent will not be released until mid-February.

And in what the bank said were unrelated moves, the assignments of its three top officers have been shuffled.

Richard J. Meyer, Pacific Inland’s chairman since its founding in March, 1984, relinquishes that position to become chairman of the newly formed bank executive committee. However, he retains the chairmanship of Pacific Inland Bancorp, the bank’s parent.

Meyer was replaced as bank board chairman by Mel E. Miller, who served as the bank’s president and chief executive officer since its opening.

John Britt, who joined the bank in August as executive vice president and chief operating officer, replaces Miller as president and chief executive. Britt was also named a director of both the bank and its parent. Meyer said the moves were made to help the bank continue its rapid growth. The institution’s assets grew from $29 million at the beginning of 1985 to more than $60 million by the end of the year. The new assignments become effective Feb. 1.

Britt said that he joined the bank late last year with the understanding that he would be named president and chief executive in early 1986.