Two California Banks Shut Down by FDIC

Two more California banks have failed and subsequently are now under new management.

San Luis Trust Bank, based in San Luis Obispo, opened last week as a new branch of First California Bank. San Luis Trust had $333 million in total assets, and First California has $1,7 billion, according to the FDIC. The bank was also mainly focused on investing in real estate, which may have led to its demise. Luckily, the bank has just one office to convert into First California colors.

Second in futility is Charter Oak Bank of Napa, which boasted $121 million in assets. The shuttered bank was merged into Bank of Marin from Novato, which has over $1 billion in total assets. Loan issues are a major point of blame for the bank’s failure, and the bank has just two offices to merge with Bank of Marin.

The two banks make up failure number two and three for banks in the state. The FDIC will take a hit of $96 million to its insurance fund for San Luis Trust’s failure, and $22 million for Charter Oak’s.