Regulators closed 1st Centennial Bank in Redlands, Calif., late Friday, and sold most of its insured deposits to First California Bank.

The California Department of Financial Institutions appointed the Federal Deposit Insurance Corp. as the receiver of the $803 million-asset bank, the third institution to fail this year.

1st Centennial failed with $677 million in deposits, of which about 98% were insured. The FDIC said First California, located in Westlake Village, would assume most of the insured funds. The transaction did not include the insured portion of the failed bank’s $362 million in brokered deposits, which the FDIC will pay brokers directly.

The failed bank’s six branches will reopen as branches of First California on Monday, the FDIC said. The acquirer paid a 5.29% deposit premium, and also agreed to buy about $293 million of 1st Centennial’s assets.

The agency estimated the failure will cost $277 million.

The first two failures of 2009 came a week ago on Jan. 16, when regulators closed $431 million-asset National Bank of Commerce in Berkeley, Ill., and $446 million-asset Bank of Clark County in Vancouver, Wash.

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