First Regional Bank branches re-open under First Citizens ownership

First Regional Bank is no more. The Southland bank became the first in California to fail this year. Regulators shut it down on Friday. Its branches reopened Monday morning under the name of the bank that agreed to take it over: First Citizens Bank and Trust.

Except for the First Citizens banners draped or pasted over the First Regional signs, it appeared to be business as usual at the branch in Century City. Staff from the Federal Deposit Insurance Corporation had worked through the weekend to complete the bank takeover. Ombudsman Ray Rudnicki said that fortunately in this case, the transition was smooth.

“First Citizens was kind enough to open their doors an hour early in case there were people, and there was no one that showed up,” Rudnicki said.

North Carolina-based First Citizens was also kind enough to assume most of First Regional’s liabilities. Rudnicki said the 30-year-old bank made a lot of development and construction loans, especially in commercial real estate. As the economy soured, he said, building tenants couldn’t keep up their leases, and building owners struggled.

"In simple layman’s language: the bank made loans and people couldn’t pay them back.”

First Regional’s eight branches from Westlake Village to Irvine now fold into a First Citizens empire that operates 380 branches in seven states.

In a statement, Frank B. Holding Jr., chairman and chief executive officer of First Citizens Bank said the takeover "expands our presence in the greater Los Angeles area, and it allows us to take advantage of our longstanding experience as one of the nation's top financial service providers for businesses and professionals."