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

The California Department of Financial Institutions appointed the Federal Deposit Insurance Corp. as the receiver of the $803 million-asset 1st Centennial, the third institution to fail this year.

It failed with $677 million of deposits, of which about 98% were insured.

The FDIC said First California Bank, a unit of First California Financial Group, 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; the FDIC will pay brokers directly.

First California Bank paid a 5.29% deposit premium and bought about $293 million of 1st Centennial's assets. The agency said the failure will cost it about $277 million.

The first two failures of this year came Jan. 16, when regulators closed the $431 million-asset National Bank of Commerce in Berkeley, Ill., and the $446 million-asset Bank of Clark County in Vancouver, Wash.

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