San Diego-based Bank of Southern California assumed all the deposits and assets of Frontier Bank in Palm Desert following its seizure by federal bank regulators on Nov. 7.
The transaction, which the Federal Deposit Insurance Corp. estimates will cost taxpayers $4.7 million, will expand Bank of Southern California’s footprint in the Coachella Valley to four branches, and its total branches to eight.
Frontier, doing business as El Paseo Bank, had $86.4 million in total assets when it was seized by the Office of the Comptroller of the Currency, and put into receivership by the FDIC. The failure was the 17th in the nation this year. Last year, there were 24 bank failures.
Depositors of Frontier Bank can continue to access their money by writing checks, using ATMs, and debit cards issued by their bank. Loan customers should also continue making their usual payments, the FDIC said.
Bank customers will be notified by BSC about a pending full system conversion that will allow them to use any of BSC branches.
BSC, formerly called First Business Bank, acquired two branches in the Coachella Valley in 2010 following the failure of Palm Desert National Bank. The branches held about $40 million in loans and deposits.
With the latest asset assumption, BSC has about $322 million in total assets, ranking as sixth-largest in San Diego County among locally based institutions.