1st National Says Offer for Bank of S.D. Was Rejected

First National Corp. made a “firm” offer last month to acquire all of the assets and liabilities of the Bank of San Diego from BSD Bancorp, but the offer was rejected, First National President Robert D. Richley said Friday.

First National’s offer was “summarily rejected (by BSD) . . . and we’re no longer in discussions with them,” Richley said.

First National on Friday confirmed that it had made the bid to “clarify” a published report that suggested that First National had not made an offer to BSD, Richley said. In that report, a Bank of San Diego spokesman denied that an offer had been made.

Richley said First National offered to acquire the assets and liabilities “for cash . . . (at) a premium over book value,” adding that First National did not bid on Bank of San Diego’s name or its bank charter.

Word of the offer closely follows First National’s May merger of its First National Bank subsidiary with National Bankshares of La Jolla and National Bank of Fairbanks Ranch, to form a bank with $360 million in assets.

On Friday, Bank of San Diego spokesman Dan Peeples said the bank viewed First National’s interest as an invitation to enter negotiations. However, Bank of San Diego directors told Richley that the bank “is not for sale,” according to Peeples.

Earlier this month, the troubled Bank of San Diego reported $141,000 in net income for the second quarter, compared with 8,000 during the same quarter of 1986. The bank reported a $47,000 net loss for the first half, compared with a $21,000 net loss during the first half of 1986.

At the time, BSD Chairman James Brown predicted that the Bank of San Diego would “move into the black” during July.