On Friday, the OTS closed La Jolla Bank, FSB, headquartered in La Jolla, California, and the FDIC was named receiver. As receiver, the FDIC entered into a purchase and assumption agreement with OneWest Bank, FSB, headquartered in Pasadena, California, to assume all of the deposits of La Jolla Bank, FSB. OneWest Bank previously acquired two failed California banks, IndyMac Bank, F.S.B. and First Federal Bank of California .

As of December 31, 2009, La Jolla Bank, FSB had approximately $3.6 billion in total assets and $2.8 billion in total deposits. OneWest Bank, FSB did not pay the FDIC a premium for the deposits of La Jolla Bank, FSB. OneWest Bank, FSB also agreed to purchase essentially all of the failed bank’s assets. The FDIC and OneWest Bank, FSB entered into a loss-share transaction on approximately $3.31 billion of La Jolla Bank, FSB's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $882.3 million. La Jolla Bank, FSB is the 20th FDIC-insured institution to fail in the nation this year, and the second in California.