City National Bank has acquired the assets and deposits of 1st Pacific Bank of California, a San Diego institution that was closed by regulators late Friday.
The acquisition is City National’s second Southern California pickup in the past five months, following the December purchase of Imperial Capital Bank in La Jolla.
As of March 31, 1st Pacific had $336 million in assets, including six branches that will reopen Monday as City National locations, and $291 million in deposits.
City National, owned by downtown L.A.’s City National Corp., agreed to pay the Federal Deposit Insurance Corp. a premium of 1.62 percent to assume the deposits. The institution also entered into a loss-share agreement with the FDIC on $276 million of 1st Pacific’s assets.
City National, Southern California’s third largest depository institution behind Pasadena’s OneWest Bank and East West Bank, had assets of $19.7 billion at the end of the first quarter.
The failure of 1st Pacific, which was carried out by the California Department of Financial Institutions, is expected cost the FDIC’s deposit insurance fund $88 million.
For reprint and licensing requests for this article, CLICK HERE.