Neely resigned as a director of Security Pacific.

Jerry Neely is chairman of Smith International, which is facing probable default on substantially all of its $260-million debt. Security Pacific is Smith International’s largest lender. Both Smith and Security Pacific confirmed that Neely resigned from the board of directors of Security Pacific National Bank and its parent, Security Pacific Corp., to avoid a conflict of interest during ongoing negotiations between Smith and its bank creditors. For the same reason, officials of both Smith and Security Pacific said, Carl E. Hartnack, chairman of the executive committees of Security Pacific National Bank and Security Pacific Corp., resigned last week from Smith International’s board.