Palm Desert National Bank, Palm Desert, California, was closed today by the Office of the Comptroller of the Currency. The FDIC, appointed as receiver, sold the failed bank to Pacific Premier Bank, Costa Mesa, CA., which will assume all deposits of Palm Desert National.
Established in 1981, Palm Desert was a relatively small bank with only one branch and approximately $125 million in assets. The Bank was locally owned and operated. According to the Bank’s website, Palm Desert offered a “superior level of personalized banking”, a full range of financial services and friendly service.
Palm Desert National will reopen on Monday as a branch of Pacific Premier Bank and all depositors of Palm Desert will automatically become depositors of Pacific Premier. FDIC deposit insurance will continue on all accounts up to the applicable limits. Over the weekend, customers of Palm Desert can access their money through the use of checking, ATMs and debit cards.
At December 31, 2011, Palm Desert had total assets of $125.8 million and total deposits of $122.8 million. Pacific Premier agreed to purchase all of the assets of Palm Desert.
Pacific Premier is a very well managed and profitable bank with nine branch offices. The bank was founded in 1983 and has almost $1 billion in total assets. Prior to today’s acquisition of Palm Desert, Pacific Premier had acquired Canyon National Bank which failed in February 2011. The holding company for Pacific Premier is Pacific Premier Bancorp which is a publicly traded company.
The loss to the FDIC Deposit Insurance Fund for the failure of Palm Desert is estimated at $20.1 million. Palm Desert is the nation’s 22nd banking failure of the year and the first in California since September 2011.