November 7, 2014
OCC Appoints Receiver for Frontier Bank FSB, dba El Paseo Bank, Palm Desert, California
WASHINGTON – The Office of the Comptroller of the Currency (OCC) today appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for Frontier Bank FSB, dba El Paseo Bank, Palm Desert, California, a federal saving bank. As of September 30, 2014, the institution had approximately $81 million in total assets.
The OCC acted after finding that the bank had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices. The OCC also found that the bank is likely to incur losses that will deplete its capital, the bank is significantly undercapitalized, and there is no reasonable prospect that the bank will become adequately capitalized.
The FDIC will release information about the resolution of the bank.