Orange County Register

Pacific Coast National Bank of  San Clemente, which had received $4.1 million in federal TARP bailout funds, was shut down Friday, and Tustin-based Sunwest Bank has acquired it and reopened it today, Nov. 16.

Pacific Coast, which had two branches, is the 123rd FDIC-insured institution to fail in the nation this year, and the 15th in California.

The Office of the Comptroller of the Currency closed Pacific Coast Bank on Nov. 13 and turned it over to the FDIC. The FDIC estimates that the cost to the Deposit Insurance Fund will be $27.4 million.

Pacific Coast is the third acquisition Sunwest has made this year.

“Sunwest Bank’s position as a strong, well-capitalized and highly liquid community bank has allowed us to make this third acquisition,” said Glenn Gray, president and CEO of Sunwest Bank. “With realistic lending parameters throughout a time when banks were making irrational loans, our stability gives us the opportunity to help the local businesses and entrepreneurs to grow and expand their businesses.”

As of August 31, Pacific Coast Bank had total assets of $134.4 million and total deposits of approximately $130.9 million, according to the FDIC.  Sunwest Bank did not pay a premium to assume all of the deposits of Pacific Coast. In addition to assuming all of the deposits of the failed bank, Sunwest Bank agreed to purchase essentially all of the assets.

Pacific Coast customers can conduct business as usual, Gray said. Loan customers should continue to make their payments to Pacific Coast National Bank as usual.

Earlier this year, Sunwest acquired MetroPacific Bank of Irvine in June and the six-branch First State Bank of Flagstaff, Ariz., in September. Sunwest now has seven locations in California and six in Arizona.

Click here to read the FDIC’s information about Pacific Coast’s closure.

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