California Thrift Seized in Year's 17th Failure
The Office of the Comptroller of the Currency closed Frontier Bank FSB in Palm Desert, Calif.
The $86.4 million-asset thrift did business as El Paseo Bank.
As receiver for the bank, the Federal Deposit Insurance Corp. entered into an agreement with Bank of Southern California in San Diego to buy the thrift's assets and assume its $82.1 million in deposits. Bank of Southern California paid a 1.06 premium to the FDIC for the deposits.
The failure, the 17th so far this year, is expected to cost the Deposit Insurance Fund $4.7 million.