Friday, the California Department of Financial Institutions closed 1st Pacific Bank of California, headquartered in San Diego, California, and the FDIC was appointed receiver. As receiver, the FDIC entered into a purchase and assumption agreement with City National Bank, headquartered in Los Angeles, California, to assume all of the deposits of 1st Pacific Bank of California.
As of March 31, 2010, 1st Pacific Bank of California had approximately $335.8 million in total assets and $291.2 million in total deposits. City National Bank will pay the FDIC a premium of 1.62% to assume the deposits of 1st Pacific Bank of California, and agreed to purchase essentially all of the failed bank's assets. The FDIC and City National Bank entered into a loss-share transaction on $275.7 million of 1st Pacific Bank of California's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $87.7 million. 1st Pacific Bank of California is the 68th FDIC-insured institution to fail in the nation this year and the fifth in California. City National Bank also acquired the deposits of Imperial Capital Bank from the FDIC in December 2009.