February 9, 2009
The Federal Deposit Insurance Corporation has closed three more banks, bringing the total closed so far in 2009 to nine. Two of the banks are in California, the other is in Alabama.
County Bank, Merced, California, was closed by the California Department of Financial Institutions, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Westamerica Bank, San Rafael, California, to assume all of the deposits of County Bank.
County Bank's 39 offices reopened Saturday as branches of Westamerica Bank.
Alliance Bank, Culver City, California, was closed by the California Department of Financial Institutions, with FDIC named as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with California Bank & Trust, San Diego, California, to assume all of the deposits of Alliance Bank.
Alliance Bank's five offices reopened today as branches of California Bank & Trust.
FirstBank Financial Services, McDonough, Georgia, was closed by the Georgia Department of Banking and Finance, which appointed FDIC as receiver. Regions Bank, Birmingham, Alabama entered into an agreement with FDIC to assume all FirstBank Financial deposits.
As of February 2, 2009, The FDIC said County Bank had total assets of approximately $1.7 billion and total deposits of $1.3 billion. In addition to assuming all of the failed bank's deposits, including those from brokers, Westamerica Bank agreed to purchase all of County Bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund will be $135 million.
The Alliance Bank failure is more costly to taxpayers. FDIC estimates that the cost to the Deposit Insurance Fund will be $206.0 million. California Bank & Trust's acquisition of all deposits was the "least costly" resolution for the FDIC's Deposit Insurance Fund compared to alternatives, the agency said.
So far this year, three California banks have gone under. The first was 1st Centennial Bank, Redlands, on January 23.
FDIC estimates FirstBank had total assets of approximately $337 million and total deposits of $279 million, as of December 31, 2008. In addition to assuming all of the failed bank's deposits, including those from brokers, Regions agreed to purchase approximately $17 million in assets. The FDIC will retain the remaining assets for later disposition. The FDIC estimates that the cost to the Deposit Insurance Fund will be $111 million.
