FIs closed: First Regional Bank, Los Angeles, California, USA
On Friday, 29 January, 2010, First Regional Bank, Los Angeles, CA was closed by the California Department of Financial Institutions, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.
The FDIC entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company, Raleigh, North Carolina, to assume all of the deposits of First Regional Bank.
The eight branches of First Regional Bank will reopen on Monday as branches of First-Citizens Bank & Trust Company. Depositors of First Regional Bank will automatically become depositors of First-Citizens Bank & Trust Company.
As of 30 September, 2009, First Regional Bank had approximately USD2,180 million in total assets and USD1,870 million in total deposits. First-Citizens Bank & Trust Company did not pay the FDIC a premium to assume all of the deposits of First Regional Bank.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be USD825.5 million.
First Regional Bank is the 14th FDIC-insured institution to fail in the USA this year.
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