Seven banks closed Friday bringing the number of failed to 140. Two banks in California, along with those in Florida, Alabama; Georgia, Michigan and Illinois shuttered by Federal Regulators.
The banks in California were the largest seized First Federal Bank of California-based in Santa Monica near Los Angeles. One of the oldest banks in Southern California, founded in 1929 at the start of the Great Depression. Ironically, the banks demise comes at “Great Recession” the greatest financial disaster since then.
The government sold the banks assets and deposits of OneWest Bank based in Pasadena,CA. The bank with 39 branches in Southern California have reopened as OneWest Bank. One West formerly known as IndyMac Bank. IndyMac closed down in 2008 by regulators.
An investment group which includes controversial Billionaire philanthropist George Soros bought IndyMac in 2009.
OneWest Bank will grow to 72 branches.
The second bank to close was Imperial Capital Bank based in La Jolla section of San Diego. Imperial Capital has$4 billion in assets and $2.8 billion in deposits. Imperial Capital was sold by federal regulators to Los Angeles based City National Bank. Imperial Capital branches will reopen on Monday as branches of City National Bank.
Imperial Capital had nine branches in California,Nevada, and Maryland.
Rockbridge commercial Bank based in Atlanta with$294 million in assets and $291 Million in deposits, New South Federal Saving Bank in Irondale,AL with $1.5 billion in asset and$1.2 billion in deposits. Plano,TX based Beall Bank agree to buy New South Federal assets, deposit including the lone bank branch.
Citizens State Bank of New Baltimore, with $168 million in assets and $157 million in deposits Peoples First Community Bank of Panama City,FL;with $1.8 billion in asset and $1.7 in deposits. Hancock Bank based in Gulfport,MS agreed to buy Peoples First Community.
and Independent Bankers’ Bank based in Springfield,IL with $585 million in assets and $511 million in deposits. Independent Bankers’ Bank is a bank for smaller banks. The FDIC created a “bridge bank” that keeps the bank open until a buyer is found.
Rockbridge Commercial Bank will be wind down and the deposits will sent to their customers.