Joseph J. Pinola, Who Led First Interstate to Prominence, Dies

Joseph J. Pinola, the aggressive Southern California banker who built former Los Angeles-based First Interstate Bancorp into a national financial giant, died Thursday at his home in Century City. He was 76.

The strong-willed Pinola is best remembered for his hostile bid in 1986 to buy then-ailing Bank of America, which was twice the size of First Interstate. After a bruising battle that shook the banking world, Pinola dropped his offer.

After assuming the helm at First Interstate (formerly known as Western Bancorp) in 1978, Pinola oversaw the bank’s transformation from a collection of loosely knit institutions into a financial powerhouse, with operations in 14 states. Pinola created the nation’s largest interstate bank and was the first to experiment with bank franchises.

“He was a forward-looking guy who was considered a dynamic leader in his day,” said Edward Carson, who succeeded Pinola as chairman of First Interstate.

At its peak, First Interstate was the nation’s eighth-largest bank.

After a spectacular 1988 fire swept through the bank’s landmark headquarters in downtown Los Angeles, Pinola moved his bank into the new 73-story Library Tower, putting the First Interstate name and logo atop the tallest building west of the Mississippi.

But by the time Pinola retired at age 65 in 1990, First Interstate was beginning to suffer from growing pains. Ill-fated expansions into Arizona and Texas were causing steep losses. Thousands of jobs were cut. And California was heading into a deep recession.

By the early 1990s, First Interstate found itself the target of buyout offers. In 1996, Wells Fargo won a bidding war against Minneapolis-based U.S. Bancorp to buy First Interstate for $11 billion.

Before joining First Interstate, Pinola spent much of his banking career at Bank of America.

A native of Pennsylvania, he served in the U.S. Navy during World War II and the Korean War. During his career, he also served on the boards of directors of Edison International, Lockheed Corp. and the Federal Reserve Bank of San Francisco.

Pinola is survived by his wife of 53 years, Dorie; and his son, Jim Pinola of Long Beach. No services are scheduled. Donations may be sent to the Salvation Army, 900 W. James M. Wood Blvd., Los Angeles, CA 90015.