Today, the California Department of Financial Institutions closed the 1st Centennial Bank, Redlands, California and the FDIC was named receiver. First California Bank, Westlake Village, entered into a purchase and assumption agreement to assume all the insured deposits of 1st Centennial for a 5.29 percent premium. First California Bank also purchased approximately $293 million of 1st Centennial's assets, with the FDIC holding the remaining assets for later disposition. First California Bank did not assume the approximately $362 million in brokered deposits. The FDIC will pay the brokers directly for the amount of their insured funds.

As of January 9, 2009, 1st Centennial had total assets of $803.3 million and total deposits of $626.9 million. The FDIC reported that there were $12.8 million in uninsured deposits, with this number likely to change once the FDIC obtains additional customer information.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $227 million. 1st Centennial is the third bank to close this year and the first in California since November 2008.