On Friday, the Office of Thrift Supervision closed Los Padres Bank, headquartered in Solvang, California, and appointed the FDIC as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Pacific Western Bank of San Diego, California, to assume all of the deposits of Los Padres Bank.

As of June 30, 2010, Los Padres Bank had approximately $870.4 million in total assets and $770.7 million in total deposits. Pacific Western Bank will pay the FDIC a premium of 0.45 percent for the deposits of Los Padres Bank. Pacific Western Bank will purchase essentially all of the assets of Los Padres Bank and entered into a loss-share transaction on $579.8 million of the failed bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $8.7 million. Los Padres Bank is the 117th FDIC-insured institution to fail in the nation this year, and the 9th in California. Pacific Western Bank previously acquired other failed banks in August 2009 and November 2008.