67.4 F
Los Angeles
Thursday, Jun 8, 2023

First California Takes Over Failed Bank

Westlake Village’s First California Bank over the weekend took over a small failed bank in San Luis Obispo, which will reopen Tuesday as a branch of First California.

The Office of Thrift Supervision on Friday seized and closed San Luis Trust Bank, a one-office bank with more than $332 million in total assets and more than $272 million in total deposits as of Dec. 31. The bank had heavy exposure to the real estate downturn.

The Federal Deposit Insurance Corp. entered into a purchase and assumption agreement First California, which assumed San Luis Trust’s deposits. The FDIC and First California Bank entered into a loss-share transaction on nearly $242 million of San Luis Trust assets. First California will share in the losses on the asset pools covered under the loss-share agreement. The FDIC estimates the deal will cost the Deposit Insurance Fund about $96.1 million.

San Luis Trust was among two California banks closed last week, bringing the total to three so far this year.

First California, which had 20 offices in six counties before the latest deal, raised $39 million in capital last year so it could take advantage of acquisition opportunities. It acquired failed Western Commercial Bank of Woodland Hills in November. San Luis Trust will be its first office in San Luis Obispo County.

As of the end of the year, First California had total assets of more than $1.7 billion, total capital of $219 million and a risk-based capital ratio of 16.3 percent, exceeding the FDIC “well-capitalized” minimum level.

Featured Articles

Related Articles