WASHINGTON – Regulators have closed a small lender in California for the 17th bank failure in the U.S. this year after 24 closures in 2013.
The Federal Deposit Insurance Corp. said Friday that it has taken over Frontier Bank FSB, based in Palm Desert.
The bank is better known as El Paseo Bank and operated two branches. It had about $86.4 million in assets and $82.1 million in deposits as of June 30.
Bank of Southern California NA, based in San Diego, will pay the FDIC a premium of 1.06 per cent to acquire all of Frontier Bank’s deposits.
In addition, Bank of Southern California agreed to buy essentially all of the failed bank’s assets.
Frontier Bank’s failure is expected to cost the federal deposit insurance fund $4.7 million.