Union Bank, a subsidiary of UnionBanCal, has acquired certain deposits and assets of California-based Tamalpais Bank in a purchase and assumption agreement with the Federal Deposit Insurance Corporation (FDIC).

The acquisition follows a decision by the California Department of Financial Institutions to close Tamalpais Bank and appoint the FDIC as receiver.

Of the approximately $600m in total assets acquired, Union Bank acquired approximately $500m in loans and other real estate owned, which is covered under a loss-share agreement with the FDIC. Union Bank also assumed more than $400m in deposits.

Tamalpais Bank has seven full-service branches in Marin County, California: Corte Madera, Mill Valley, San Anselmo, Tiburon-Belvedere, Greenbrae, Northgate and San Rafael.

Tamalpais Bank’s branches will reopen as Union Bank branches. However, depositors will automatically become depositors of Union Bank. Since deposits will continue to be insured by the FDIC, there is no need for customers to change their banking relationship to retain their deposit insurance coverage.

Masaaki Tanaka, president and CEO of Union Bank, said: “With prudence and confidence, we look forward to serving Tamalpais Bank customers, to whom we pledge the highest levels of personal service and banking expertise.”

UnionBanCal is a wholly-owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, which is a subsidiary of Mitsubishi UFJ Financial Group.