A man who had been holding several people hostage overnight inside a California bank has been shot dead in a standoff with the FBI, police said.

The suspect was killed In “an officer-involved shooting involving Federal Bureau of Investigation personnel” on Wednesday, the Bakersfield Police Department said.

The fatal shooting ended a tense period after the suspect barricaded himself with several others inside the multistory Chase Bank building on Tuesday in Bakersfield, 110 miles (177km) north of Los Angeles. Police had originally responded to a bomb threat at the scene.

Two hostages were released on Tuesday during negotiations. The remaining hostages released on Wednesday were unharmed, police said.

Police arrived to the scene on Tuesday at around 13:00 PST (22:00 BST), after calls of a bomb threat and reports of a man who had barricaded himself inside with several people.

Bakersfield City Hall, the local police headquarters, nearby buildings and multiple roads were closed during the hostage situation, as the police department’s negotiation team began contacting the suspect via telephone.

“Every single resource is at the site’s disposal,” Bakersfield Police Sergeant Eric Celedon told the press on Tuesday.

“SWAT team, bomb squad, K9 team, gang unit, negotiators, drone team. Every single asset we have to bring this to the safest conclusion is out here right now,” he continued.

Members of the FBI’s Hostage Rescue Team were also on the scene, according to CNN.

Representatives for Chase Bank said on Tuesday the compnay was “aware of the ongoing situation occurring at the building where our branch is located on the ground floor”.

“The branch is currently empty, and we are working with authorities,” a Chase spokesperson told the BBC’s US partner CBS News in an earlier statement.

Bakersfield mayor Karen Goh had said she was also monitoring the situation. (BBC)

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