SDN Bancorp, parent of San Dieguito National Bank, will allow an agreement to sell controlling interest in the bank to Wall Street Financial Corp. of Honolulu to terminate March 31, the deal’s expiration date.
SDN Bancorp, which will also terminate a franchise agreement with Wall Street Financial that would have made it a “Wall Street Financial Center,” said the acquisition encountered unspecified regulatory delays.
The bank has offices in Encinitas and La Costa.
In announcing the deal last May, SDN Bancorp said Wall Street had acquired a 4.9% interest in the bank for $92,000 and lent it $408,000. On Thursday, SDN Bancorp said the Honolulu investor will remain a shareholder and that SDN Bancorp will pay back the loan in September, 1990. The loan would have been converted to equity had the acquisition gone through.
With assets of $60 million as of Dec. 31, the bank reported net income of $341,000, or $.62 a share for 1988. Despite the termination of the WSF deal, SDN Bancorp said its capital position was a “strong” 7.5% of average assets as of Dec. 31.