Four More Banks Fail

Posted by Orb Staff on July 20, 2009 No Comments
Categories : Residential Mortgage

ederal Deposit Insurance Corp. (FDIC)-insured institutions were shuttered Friday, and the closings' collective damage on the FDIC's Deposit Insurance Fund was estimated at $1.09 billion. The biggest hit came from Vineyard Bank NA in Rancho Cucamonga, Calif., which had approximately $1.9 billion of assets and $1.6 billion of deposits at the end of March. San Diego-based California Bank & Trust has agreed to assume all deposits (except $134 million of brokered accounts) and purchase about $1.8 billion of assets. Temecula Valley Bank, Temecula, Calif.,was closed by the California Department of Financial Institutions, and its assets have been assumed by Raleigh, N.C.-based First-Citizens Bank and Trust Co. As of May 31, Temecula Valley Bank had total assets of $1.5 billion and total deposits of approximately $1.3 billion. In addition to assuming all of the deposits of the failed bank, First-Citizens Bank and Trust agreed to purchase essentially all of the assets. The FDIC and First-Citizens Bank and Trust entered into a loss-share transaction on approximately $1.3 billion of Temecula Valley Bank's assets BankFirst, Sioux Falls, S.D., and First Piedmont Bank, Winder, Ga., both fell Friday, as well. The FDIC brokered transactions in which Grand Forks, N.D.-based Alerus Financial NA will take over BankFirst, and Athens, Ga.-based First American Bank and Trust Co. will take over First Piedmont. SOURC

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