Richard J. Flamson III, 62; Led Security Pacific Corp.

Richard J. Flamson III, who led Security Pacific Corp. for more than a decade before retiring as chief executive last year, died Thursday in Corona del Mar of complications arising from leukemia, bank officials announced.

Flamson, 62, was on the board of the Los Angeles-based bank holding company at the time of his death.

Under Flamson, Security Pacific grew from the nation’s 11th largest bank holding company into its fifth, expanding from what was mostly a California bank into one with a worldwide reach and especially strong ties to the Far East. It developed operations in such western states as Arizona and Washington, and was one of a handful of U.S. banks that actively developed a “merchant bank,” or investment banking-style operation.

In August, San Francisco-based BankAmerica Corp. agreed to acquire Security Pacific in a stock swap valued at $4.7 billion.

The merger, which followed an unsuccessful attempt by Security Pacific to merge with Wells Fargo & Co. last year, will form the nation’s second-largest banking firm behind Citicorp. Unless significant problems arise, the merger is expected to be completed by the end of February.

The BankAmerica name was selected for the merged bank “because it was better known than Security Pacific,” Flamson said in August. “It doesn’t make me feel good at all to see the name go, but I understand the realities of it.”

Although highly profitable in the late 1980s, Security Pacific began to stumble in 1990, with many of the problems traced to its aggressive expansion. This week, the bank reported a $508.5-million third-quarter loss as it set aside $1.2 billion for problem loans, many of them real estate related, in anticipation of the BankAmerica merger.

A native of Los Angeles, Flamson was born Feb. 2, 1929. He graduated from the Harvard School in North Hollywood and earned a bachelor of arts degree in economics and business administration at Claremont McKenna College (formerly Claremont Men’s College) in 1951. In 1962, he graduated with honors from Pacific Coast Banking School at the University of Washington.

He began his career with Security Pacific in 1955. He was named president and chief executive officer in October, 1978, and chairman in January, 1980. He took on the sole title of chairman in January, 1990, the same month he turned over the chief executive’s title to Robert H. Smith.

At the time, Flamson said that his health problems were not the pivotal reason for the change, although it is widely believed that they were a major factor in speeding up the transition.

Flamson’s 36 years “of outstanding service stand as a monument to his vision,” Smith said Thursday. “We will remember him for his tremendous courage, his integrity and his leadership.’

Flamson is survived by his wife, Arden; a daughter, Leslie Flamson Moore; three sons, Richard J. IV, Scott A. and Michael J., and six grandchildren. Funeral services are pending.