Visitors to the Napa branch of Pacific National Bank customers were in for a surprise this week when they saw a new name on bank doors. 

On Oct. 30, a federal regulatory agency, the Office of the Comptroller of the Currency, closed all 17 branches of the San Francisco-based Pacific National Bank. All accounts were immediately transferred to new owner, U.S. Bank of Minneapolis, Minn.

“Pacific National Bank no longer exists,” David Barr with Federal Deposit Insurance Corporation said.

Pacific National Bank was one of nine bank subsidiaries of FBOP Corporation of Oak Park, Ill., acquired by U.S. Bank from the FDIC. The transaction included more than $18 billion in total assets and 150 branches in California, Illinois, Arizona and Texas. The Napa branch is located in the new Napa Square building on First Street in downtown Napa.

According to Barr, Pacific National Bank fell victim to the same problems many other financial institutions suffer from these days — trouble with commercial real estate lending and loans to developers, as well as subprime Fannie Mae and Freddie Mac loans.

While more than 100 banks have failed in the current economic crisis, Pacific National is the first that had a presence in Napa County.

For Pacific National Bank — now U.S. Bank — customers, “It’s business as usual except a new name over the door and new owners in place,” Barr said.

Barr said the smooth handover was a prime example of how the FDIC protects depositors. “It’s a seamless transition for the customers,” he said. “That’s how we operate.”

Since this crisis began in late 2007, there have been 18 bank failures in California, mostly in Southern California. The FDIC lists 416 banks on its problem bank list.

While no one wants a bank to fail, “This can be a good thing for a community,” Barr said. “You are removing a troubled or sick bank from the community and replacing it with another institution. Many times this is for the better.”

Brian Kelly, president and CEO of Charter Oak Bank in Napa, said local community banks are in a stronger position than Pacific National Bank was. “All three of our local community banks are in the well-capitalized category,” Kelly said.

“The loans made by community banks are loans to people in the community,” Kelly said. “We have one of the best economies in the state. If you have a strong community, that’s positive.”

While many banks are probably facing some loan losses, “No significant loan problems are apparent” at local community banks, he said.

“This is the first time that it has hit in our backyard,” Dennis Pedisich, president and CEO of Napa Community Bank, said. “It’s a sign of the times.”

Pedisich said he hopes there won’t be any more bank closures in Napa. “Fortunately we’re a strong, well-capitalized bank. We have weathered the storm pretty well,” he said.

“I don’t think this is the end (of bank failures) — this is a readjustment of the banking industry,” Kelly said.

“We expect bank failures to continue for the rest of this year and next year and then taper off,” Barr said.

U.S. Bank already has three other branches in Napa. It’s unknown if the bank will consolidate locations. Calls to the U.S. Bank corporate office were not returned by press time.