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.
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.