Cal National Bank
| Company type | Subsidiary |
|---|---|
| Industry | Banking |
| Founded | 1996 |
| Defunct | 2009 |
| Fate | Closed by Office of the Comptroller of the Currency; assets and deposits acquired by U.S. Bank |
| Headquarters | Southern California , United States |
Area served | Southern California |
| Parent | FBOP Corporation (until closure) |
California National Bank (Cal National Bank) was a consumer and commercial bank located in Southern California that operated from 1996 until its closure in 2009. Established through acquisitions by FBOP Corporation, the bank ultimately ceased operations due to financial difficulties stemming from the 2008 subprime mortgage crisis.
Overview
The inception of Cal National Bank occurred in 1996 when FBOP Corporation purchased Torrance Bank. In 1998, FBOP further expanded its presence by acquiring five branches from Topa Savings and Topa Thrift, thereby creating California National Bank. The institution continued to grow by acquiring People’s Bank of California in 2001 followed by Fidelity Federal Bank in 2002.
By the year 2009, Cal National maintained a network of 68 branches throughout Southern California, providing services including Mortgages and commercial banking solutions.
Bank failure
California National Bank was closed on October 30, 2009, by the Office of the Comptroller of the Currency due to significant financial setbacks. The Federal Deposit Insurance Corporation (FDIC) took over as receiver and facilitated the transfer of all deposits and branch operations to U.S. Bank.
The primary cause behind Cal National’s collapse was heavy losses associated with $855 million in securities issued by Fannie Mae and Freddie Mac, which were adversely affected by the subprime mortgage crisis.