Amid the hopeful news that the country's economic growth rate last quarter was an unexpected 5.7 percent, the Federal Deposit Insurance Corporation announced that yet another Los Angeles-based financial institution has closed: First Regional Bank.
Here's the stunner: The year is only one-month deep, and already 14 FDIC-insured institutions have closed. First-Citizens Bank & Trust Company of Raleigh, North Carolina, will take over First Regional's deposits and reopen its eight branches Monday under the First Regional banner, according to the FDIC.
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The federal corporation reminded customers that their deposits were covered within FDIC limits. The bank had $2.18 billion in assets and $1.87 billion in deposits with a loss to the insurance fund of $825.5 million to close the operation. First-Citizens agreed to buy $2.17 billion in bank assets, including deposits, a move called the "least costly" resolution to help First Regional's customers keep on banking.