First Regional Bank, Century City - Retail/Commercial, Construction & Land Development
Yet another bank's demise linked to mortgage and commercial lending, First Regional Bank of Century City, CA became the 14th bank to fail in 2010 when it was seized and placed in FDIC receivership on 2010-01-28. Headquartered in the reputed "City within the City," First Regional was nestled in a Los Angeles business district comprised of "many law firms and executives -- particularly those with ties to the film, television, and music industries."
According to an article in 2005, the bank specialized in "short-term real estate and construction loans." An excerpt from that article gives more insight:
"First Regional's loans, typically for the purchase of shopping centers, strip malls, apartment buildings and industrial warehouses, range from $4 million to $7 million, but can go as high as $20 million. Last year, First Regional's deposits jumped 50 percent, loans increased 62 percent, and net income skyrocketed 140 percent."
Retail 1-4 family mortgage loans accounted for a very small portion of the bank's lending, totalling just $5.8 million in 2008. Commercial lending is where First Regional took the hit, as reported in the LA Times:
"The FDIC agreed to shoulder most of the losses on First Regional's loans, and estimated the failure would cost the bank deposit insurance fund $825.5 million."
First-Citizens Bank & Trust Co. of Raleigh, N.C. took over the deposits, nearly all of its $2.2 billion in assets, and some 380 branches in seven states.
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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.