City National buys another failed bank
The seven offices of Sun West Bank in Nevada are scheduled to reopen Tuesday as part of City National Bank, which scooped up a failed bank from the Federal Deposit Insurance Corp. for the third time in five months.
Las Vegas-based Sun West, shut down by Nevada regulators Friday night, had about $352 million in assets at the end of April and $311 million in deposits, virtually all of which will be assumed by City National. About $252 million of the assets are loans on which the FDIC will share losses, City National said.
City National, the largest bank based in Los Angeles, with about $20 billion in assets, has been doing business in Nevada since 2007. Before Friday’s deal it had eight branches in the state, including two full-service regional centers in Las Vegas and Reno.
Russell Goldsmith, chief executive of City National, said in a news release that the acquisition of Sun West reflected the L.A. bank’s “commitment to Nevada†and “our confidence in the state’s long-term economic prospects.â€
The previous two failed banks acquired by City National were Imperial Capital Bank in La Jolla and 1st Pacific Bank of California in San Diego.
The FDIC estimated that Sun West’s failure would cost the deposit insurance fund $96.7 million. The bank was the nation’s 78th FDIC-insured institution to fail this year
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