SANTA MONICA -- The 39 branches of the failed First Federal Bank of California will reopen Saturday as branches of OneWest Bank.
Santa Monica-based First Federal Bank of California, which was founded in 1929, was closed Friday by the Office of Thrift Supervision because of defaults on adjustable mortgages.
Depositors can access their money over the weekend by writing checks or using automated teller machine or debit cards, Greg Hernandez of the Federal Deposit Insurance Corp. said.
Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual, Hernandez said.
Depositors will automatically become depositors of OneWest Bank and continue to be insured by the FDIC, Hernandez said.
Customers should continue to use their existing branch until OneWest Bank can fully integrate the deposit records of First Federal Bank of California, Hernandez said.
First Federal Bank of California had approximately $6.1 billion in total assets and total deposits of $4.5 billion as of Sept. 30, Hernandez said.
OneWest Bank did not pay a premium to assume all the deposits of First Federal Bank of California. In addition to assuming all of First Federal Bank of California's deposits, OneWest Bank agreed to purchase essentially all of its assets, Hernandez said.
The FDIC and OneWest Bank, FSB entered in a loss-share transaction on $5.3 billion of First Federal Bank of California's assets. OneWest Bank, FSB will share in the losses on the asset pools covered under the loss-share agreement.
Hernandez estimated that First Federal Bank of California's failure will cost the FDIC's Deposit Insurance Fund $146.3 million.
OneWest Bank's acquisition of all of First Federal Bank of California's deposits was the "least costly" resolution for the fund compared to the alternatives, Hernandez said.
First Federal Bank of California was the 140th FDIC-insured institution to fail in the nation this year, and the 17th in California, Hernandez said.
Customers with questions about the closure can call the FDIC at (800) 930-1849 between 9 a.m. and 6 p.m. today, noon to 6 p.m. Sunday and 8 a.m. to 8 p.m. weekdays. The toll-free number will not be in operation from 3 p.m. Thursday through 8 a.m. Dec. 28 because of Christmas.
Information is also available online at www.fdic.gov/bank/individual/failed/firstfederal-ca.html.
The purchase gives Pasadena-based OneWest Bank 72 branches in the Greater Los Angeles area, with more than $11 billion in deposits.
Officials of OneWest Bank, formed earlier this year from the remnants of the failed IndyMac Bank, said they do not anticipate closing any bank branches.
Santa Monica-based First Federal Bank of California, which was founded in 1929, was closed Friday by the Office of Thrift Supervision because of defaults on adjustable mortgages.
Depositors can access their money over the weekend by writing checks or using automated teller machine or debit cards, Greg Hernandez of the Federal Deposit Insurance Corp. said.
Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual, Hernandez said.
Depositors will automatically become depositors of OneWest Bank and continue to be insured by the FDIC, Hernandez said.
Customers should continue to use their existing branch until OneWest Bank can fully integrate the deposit records of First Federal Bank of California, Hernandez said.
First Federal Bank of California had approximately $6.1 billion in total assets and total deposits of $4.5 billion as of Sept. 30, Hernandez said.
OneWest Bank did not pay a premium to assume all the deposits of First Federal Bank of California. In addition to assuming all of First Federal Bank of California's deposits, OneWest Bank agreed to purchase essentially all of its assets, Hernandez said.
The FDIC and OneWest Bank, FSB entered in a loss-share transaction on $5.3 billion of First Federal Bank of California's assets. OneWest Bank, FSB will share in the losses on the asset pools covered under the loss-share agreement.
Hernandez estimated that First Federal Bank of California's failure will cost the FDIC's Deposit Insurance Fund $146.3 million.
OneWest Bank's acquisition of all of First Federal Bank of California's deposits was the "least costly" resolution for the fund compared to the alternatives, Hernandez said.
First Federal Bank of California was the 140th FDIC-insured institution to fail in the nation this year, and the 17th in California, Hernandez said.
Customers with questions about the closure can call the FDIC at (800) 930-1849 between 9 a.m. and 6 p.m. today, noon to 6 p.m. Sunday and 8 a.m. to 8 p.m. weekdays. The toll-free number will not be in operation from 3 p.m. Thursday through 8 a.m. Dec. 28 because of Christmas.
Information is also available online at www.fdic.gov/bank/individual/failed/firstfederal-ca.html.
The purchase gives Pasadena-based OneWest Bank 72 branches in the Greater Los Angeles area, with more than $11 billion in deposits.
Officials of OneWest Bank, formed earlier this year from the remnants of the failed IndyMac Bank, said they do not anticipate closing any bank branches.
