On Friday, the Nevada Financial Institutions Division closed Sun West Bank, headquartered in Law Vegas, Nevada, and appointed the FDIC as 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 the failed bank.
As of March 31, 2010, Sun West Bank had approximately $360.7 million in total assets and $353.9 million in total deposits. City National Bank will pay the FDIC a premium of 0.67% to assume all of the deposits of Sun West Bank, and also agreed to purchase essentially all of the failed bank's assets. The FDIC and City National Bank entered into a loss-share transaction on $280.0 million of Sun West Bank’s assets.