Another failed bank, this time in Cali
They keep coming and this one is big. It is #139.
Imperial Capital Bank, La Jolla, California, was closed today by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with City National Bank, Los Angeles, California, to assume all of the deposits of Imperial Capital Bank.
The nine branches of Imperial Capital Bank will reopen during normal business hours on Monday as branches of City National Bank. Depositors of Imperial Capital Bank will automatically become depositors of City National Bank…
As of September 30, 2009, Imperial Capital Bank had approximately $4.0 billion in total assets and $2.8 billion in total deposits. City National Bank paid the FDIC a .24 percent premium for the right to assume all of the deposits of Imperial Capital Bank. In addition to assuming all of the deposits of the failed bank, City National Bank agreed to purchase $3.3 billion of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.
The FDIC and City National Bank entered into a loss-share transaction on $2.5 billion of Imperial Capital Bank’s assets. City National Bank will share in the losses on the asset pools covered under the loss-share agreement.