By Lookout Staff

December 22, 2009 -- After 80 years in business, First Federal Bank of California is no more. The bank, which opened its first branch in downtown Santa Monica in 1929, closed on Friday.

First Federal’s 39 branches, including four in Santa Monica, reopened on Saturday as part of Pasadena-based OneWest Bank.

First Federal was one of seven banks nationwide shut down by federal regulators on Friday due to their continued poor performances. La Jolla-based Imperial Capital Bank was also on the list. It was purchased by City National Bank of Los Angeles.

The Federal Deposit Insurance Corporation (FDIC) helped broker the deal for OneWest to purchase First Federal and its $6.1 billion in assets. One West was formed earlier this year from the remains of failed mortgage lender IndyMac.

“Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage,” FDIC officials said in a statement.

“Customers should continue to use their existing branch until OneWest Bank … can fully integrate the deposit records of First Federal Bank of California.”

First Federal’s death does not come as a shock to most financial observers. The bank’s imminent doom became apparent earlier this year when it was forced to halt lending. ("Santa Monica Institution Sinking," February 4, 2009)
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Sixteen California banks have closed this year. First Federal ranks third on this list in terms of total assets.