U.S. regulators were aware of high loan concentrations at a California bank years before those same loans helped precipitate the firm's failure, government auditors said in a report released on Friday.

The Office of the Inspector General for the Federal Deposit Insurance Corp. said examiners did not take the steps necessary to rein in risky practices at First Centennial Bank in Redlands, Calif. The firm failed in January with an estimated cost to the federal deposit insurance fund of $215.4 million.

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