Security Pacific, however, managed a gain, climbing 50 cents, to $30.50 a share.

Security Pacific said it expected to lose about $400 million in the fourth quarter, its second consecutive hefty loss.

Security Pacific reported a $508 million loss in the third quarter and reserved $1.2 billion for troubled loans.

Security Pacific has not made clear its reason for withdrawing the credit, he said.

Security Pacific took ownership of the diamonds but received few offers for such a large quantity.

Security Pacific said that it would also have the option to call the notes.

Security Pacific will sell $175 million in preferred stock to strengthen its capital base.

Security Pacific has faced some tough going in that area since the stock market crash of 1987.

Security Pacific reported a 5 percent increase in first-quarter earnings, to $188.4 million.

Security Pacific lost $357.6 million in the fourth quarter of 1990.