IndyMac Federal Bank sale complete

By Caroline Salls

Pittsburgh, March 20 - The sale of IndyMac Federal Bank, FSB to OneWest Bank Group LLC from the Federal Deposit Insurance Corp. is complete, according to OneWest and FDIC news releases.

IndyMac's assets and operations were acquired by OneWest Bank, FSB, a newly formed Pasadena, Calif.-based federal savings bank. OneWest Bank Group is a newly formed holding company owned by a consortium of private investors.

With $1.55 billion in common equity injected by its new owners, OneWest said it will be well-capitalized as measured by its tangible common equity ratio.

As of Jan. 31, IndyMac Federal had total assets of $23.5 billion and total deposits of $6.4 billion, according to the FDIC news release.

According to the FDIC release, OneWest agreed to purchase all deposits and $20.7 billion in assets at a discount of $4.7 billion. The FDIC will retain the remaining assets for later disposition.

OneWest will operate as a regional bank, focused on deposits and conforming and jumbo mortgage lending for its retail customers in Southern California.

Over time, the bank said it intends to expand its retail branch network, which currently includes 33 branches located primarily in the Los Angeles area.

OneWest will also operate the national mortgage banking business acquired from IndyMac and continue to modify mortgages in accordance with the program created by the FDIC. OneWest said it will also explore opportunities with other institutions to leverage its experience and expertise with loan modifications.

OneWest said it does not plan any branch closures and expects to add more customer-facing employees over time, consistent with its plans to grow OneWest's retail banking presence. Existing IndyMac branches will be transitioned to the OneWest brand over the coming months.

Terry Laughlin is the chief executive officer of OneWest Bank, according to the release.

According to the FDIC news release, the 33 branches of IndyMac Federal reopened as branches of OneWest on Friday, and IndyMac Federal depositors automatically became depositors of OneWest.

IndyMac Bancorp filed for bankruptcy on July 31, 2008 in the U.S. Bankruptcy Court for the Central District of California. Its Chapter 7 case number is 08-21752.

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