Government Shuts Down Calabasas Bank

It’s called the First Bank of Beverly Hills, but it is — or at least was — headquartered here in Calabasas. Now, it’s been dissolved.

No advance notice is given to the public when a financial institution is shuttered.

On Friday, the state Dept. of Financial Institutions said that the bank had inadequate capital, shut it down and turned its assets over to to the FDIC, which will refund most customer deposits, subject to certain limitations. Checks are scheduled to be mailed Monday.

The bank is the 28th federally insured institution to close in 2009.

First Bank invested much of its loan portfolio with condo builders and was particularly hard hit by the housing downturn. It lost more than $80 million in the fourth quarter of last year. State officials said they required the bank to increase capital reserves, but it was unable to do so.

For specific information, click here to go to the FDIC website regarding the closure.