City National buys 1st Pacific Bank
BY CITY NEWS SERVICE
Branches of San Diego-based 1st Pacific Bank of California reopened Monday as branches of Los Angeles-based City National Bank after the bank’s six branches were closed by government regulators, according to the Federal Deposit Insurance Corp.
First Pacific Bank customers automatically became depositors of City National Bank and continue to be insured by the FDIC.
LaJuan Williams-Young of the FDIC said checks drawn on the bank will continue to be processed.
Loan customers should continue making payments as usual.
Customers with questions about the closure can call the FDIC at (800) 674-8944 between 8 a.m. and 8 p.m. weekdays, 9 a.m. and 6 p.m. Saturday, and noon and 6 p.m. Sunday. Information is also available at www.fdic.
First Pacific is the 68th FDIC-insured institution in the nation to fail this year, and the fifth in California. In December, La Jolla-based Imperial Capital Bank faced a similar fate, with its nine branches also bought by City National.
All eight of 1st Pacific’s branches were in San Diego County.
“City National has been serving San Diego for more than 30 years, and this acquisition underscores our expanding commitment to the community,” City National Chief Executive Officer Russell Goldsmith said.
As of March 31, 1st Pacific had about $335.8 million in total assets and $291.2 million in total deposits, according to Williams-Young.
In addition to assuming all the deposits of the bank, City National Bank agreed to buy essentially all of 1st Pacific’s assets.
City National Bank will pay the FDIC a premium of 1.62 percent to assume all of 1st Pacific’s deposits.
The FDIC and City National Bank entered in a loss-share transaction on $275.7 million of 1st Pacific’s assets.
City National Bank will share in the losses on the asset pools covered under the loss-share agreement.
Williams-Young estimated that 1st Pacific’s failure will cost the FDIC’s Deposit Insurance Fund $87.7 million.