The parent company of reverse mortgage lender Financial Freedom (OneWest Bank) purchased La Jolla Bank from the Federal Deposit Insurance Corporation (FDIC) last week.

La Jolla Bank, FSB had approximately $3.6 billion in total assets and $2.8 billion in total deposits as of December 31, 2009 said the FDIC.   

OneWest Bank, FSB did not pay the FDIC a premium for the deposits of La Jolla Bank, FSB. In addition to assuming all of the deposits of the failed bank, OneWest Bank, FSB agreed to purchase essentially all of the assets.

The FDIC and OneWest Bank, FSB entered into a loss-share transaction on $3.31 billion of La Jolla Bank, FSB’s assets. OneWest Bank, FSB will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector.

“We are pleased to be able to work with the FDIC to complete this transaction. This continues our mission of building OneWest Bank as a premier regional bank focused on customer service,” said OneWest Bank’s Chairman Steven Mnuchin. “We welcome La Jolla Bank customers to OneWest Bank and look forward to serving them through our expanded branch footprint in Southern California and our personalized, community based banking approach,” added Terry Laughlin, CEO & President of OneWest Bank.

La Jolla Bank FSB was one of four banks that failed last week.