On Friday, the California Department of Financial Institutions closed First Regional Bank, headquartered in Los Angeles, California, and the FDIC was named receiver. As receiver, the FDIC entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company, headquartered in Raleigh, North Carolina, to assume all of the deposits of First Regional Bank. First-Citizens Bank & Trust Company did not pay the FDIC any premium for the deposits of the failed bank.
As of September 30, 2009, First Regional Bank had approximately $2.18 billion in total assets and $1.87 billion in total deposits. First-Citizens Bank & Trust Company agreed to purchase approximately $2.17 billion of First Regional Bank's assets. The FDIC retained the remaining assets for later disposition. The FDIC and First-Citizens Bank & Trust Company entered into a loss-share transaction on $2 billion of First Regional Bank's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $825.5 million. First Regional Bank is the fourteenth FDIC-insured institution to fail in the nation this year and the first to fail in California following Imperial Capital Bank on December 18, 2009.