History
In March 2009, the Federal Deposit Insurance Corporation (FDIC) held an auction for IndyMac Bank, which it had seized in 2008, and sold it to IMB HoldCo LLC. The FDIC said at the time that IMB Management Holdings LP, a limited partnership composed primarily of hedge funds, controlled IMB Holdco LLC. The FDIC also said that IMB HoldCo was the only bidder for all of the IndyMac Bank assets. IMB HoldCo did not bid on the uninsured deposits at IndyMac Bank. There were a number of conditions of the FDIC sale to IMB HoldCo LLC, including that IMB HoldCo would capitalize OneWest with approximately $1.3 billion in cash.
As another condition of the sale IMB HoldCo also agreed to continue the FDIC’s existing loan modification program. The FDIC also agreed to share losses on a portfolio of qualifying loans, with IMB HoldCo assuming the first 20% of losses, with the FDIC sharing losses 80/20 for the next 10% of losses and 95/5 thereafter. Finally under a participation structure on an approximately $2 billion portfolio of construction and other loans, the FDIC will receive a majority of all cash flows generated.
OneWest Bank began operations as a newly formed Pasadena, California-based federal savings bank on March 19, 2009 with its acquisition of certain assets and certain limited liabilities of IndyMac Federal Bank, FSB from the FDIC. The newly-formed bank opened its doors with 33 branches and approximately $16 billion of assets.
Since its formation, OneWest Bank has grown through acquisitions from the FDIC of certain assets, loans, and deposits of other California-based financial institutions. On December 18, 2009, OneWest completed the acquisition of the banking operations of First Federal Bank of California, including $6 billion in assets and $5 billion in deposits. On February 19, 2010, OneWest acquired all of the deposits and certain assets of La Jolla Bank, FSB, including $4 billion in assets and $3 billion in deposits.
In December 2009, OneWest Bank, announced the creation of the OneWest Foundation, a new nonprofit public benefit corporation funded with a $10,000,000 contribution from OneWest Bank, FSB. The Foundation is being established to actively invest in the communities in which the Bank operates its branch network. In February 2010, OneWest Bank entered into a purchase and assumption agreement with the FDIC for acquisition of the deposits and certain assets of La Jolla Bank, FSB. Under the terms of the transaction, OneWest acquired $3.6 billion in assets. The FDIC and OneWest agreed to a loss‐sharing agreement covering a majority of the acquired loans from La Jolla Bank.
On October 4, 2010 OneWest Bank, announced that it has implemented the Principal Reduction Alternative (PRA) loan modification program as outlined under the Home Affordable Modification Program (HAMP). With this announcement, OneWest becomes one of the first servicers to launch the program. In November 2010, OneWest Bank, purchased of a $1.4 billion multifamily and commercial real estate loan portfolio from Citibank, N.A. The portfolio, which includes approximately 600 loans, is a strategic addition to OneWest Bank’s growing Commercial Real Estate lending business.
As of November 2010, OneWest Bank has been recognized as the 40th largest among US banks and thrifts by SNL Financial.
Read more about this topic: One West Bank
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