On Friday, the California Department of Financial Institutions closed Imperial Capital Bank, headquartered in La Jolla, California, and the FDIC was named as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with City National Bank, headquartered in Los Angeles, California, to assume all of the deposits of Imperial Capital Bank. City National Bank paid the FDIC a 0.24% premium for the deposits of the failed bank.

As of September 30, 2009, Imperial Capital Bank had total assets of approximately $4.0 billion and total deposits of approximately $2.8 billion. City National Bank also agreed to purchase $3.3 billion of the assets of the failed bank. The FDIC and Beal Bank entered into a loss-share transaction on approximately $2.5 billion of Imperial Capital Bank’s assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $619.2 million. Imperial Capital Bank is the 139th bank to fail in the nation this year and the 16th in California.