The California Department of Financial Institutions closed Metro Pacific Bank, headquartered in Irvine, California and Mirae Bank, headquartered in Los Angeles, California, and named the FDIC as receiver, bringing the total number of bank failures in the nation to forty-six and six in California.

As receiver of Metro Pacific Bank, the FDIC entered into a purchase and assumption agreement with Sunwest Bank, Tustin, California, to assume all the deposits of Metro Pacific Bank, except those from brokers. As of June 8, 2009, Metro Pacific Bank had total assets of $80 million and total deposits of approximately $73 million. Sunwest Bank also agreed to purchase almost all of Metro Pacific Bank’s assets with the FDIC retaining the remaining assets for later disposition. Excluding the $6 million in brokered deposits, Sunwest Bank will purchase all of the failed bank’s assets. The FDIC will pay the brokers directly for the amount of their funds. The FDIC estimates the cost to the Deposit Insurance Fund will be $29 million.

As receiver of Mirae Bank, the FDIC entered into a purchase and assumption agreement with Wilshire State Bank, Los Angeles, California to assume all the deposits of Mirae Bank. As of May 29, 2009, Mirae Bank had total assets of $456 million and total deposits of approximately $62 million. Wilshire State Bank also agreed to purchase approximately $449 million of the failed bank’s assets, with the FDIC retaining the remaining assets for later disposition. The FDIC and Wilshire State Bank entered into a loss-share transaction on approximately $341 million of Mirae Bank’s assets. The FDIC estimates the cost to the Deposit Insurance Fund will be $50 million.