San Joaquin Bank, Bakersfield, California, was closed today by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Citizens Business Bank, Ontario, California, to assume all of the deposits of San Joaquin Bank.
The five branches of San Joaquin Bank will reopen on Monday as branches of Citizens Business Bank.
As of September 29, 2009, San Joaquin Bank had total assets of $775 million and total deposits of approximately $631 million. Citizens Business Bank did not pay the FDIC a premium for the deposits of San Joaquin Bank. In addition to assuming all of the deposits of the failed bank, Citizens Business Bank agreed to purchase essentially all of the assets.
The FDIC and Citizens Business Bank entered into a loss-share transaction on approximately $683 million of San Joaquin Bank’s assets.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $103 million.
San Joaquin Bank is the 99th FDIC-insured institution to fail in the nation this year, and the tenth in California. The last FDIC-insured institution closed in the state was Affinity Bank, Ventura, on August 28, 2009.
Check all the banks failed in California at : California Bank Failures
The FDIC press release is available here.
Tags: 2009 Failed Banks, bank failures, California Bank Failures, Citizens Business Bank, Failed Banks, Failed Banks 2009, Failed Banks in California, Failed Banks October, Failed Banks October 16, FDIC, Friday Failures, San Joaquin Bank
