On Friday, the OTS closed First Federal Bank of California, headquartered in Santa Monica, California, and the FDIC was named as 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 First Federal Bank of California. OneWest Bank, FSB did not pay the FDIC a premium for the deposits of the failed bank.

As of September 30, 2009, First Federal Bank of California had total assets of approximately $6.1 billion and total deposits of approximately $4.5 billion. OneWest Bank, FSB also agreed to purchase essentially all of the assets of the failed bank. The FDIC and OneWest Bank, FSB entered into a loss-share transaction on $5.3 billion of First Federal Bank of California’s assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $146.3 million. First Federal Bank of California is the 140th bank to fail in the nation this year and the 17th in California.