Seven Banks Closed on Dec. 18

$6.1B First Federal Bank of California is Largest of Failed Banks Seven banks were closed by state and federal regulators on Friday, Dec. 18, including four institutions of more than $1 billion in assets under management. The largest of the failures was First Federal Bank of California, a $6.1 billion bank, which subsequently was taken over by OneWest Bank of Pasadena, CA.

Three of the banks -- RockBridge Commercial Bank, Atlanta, GA.; Citizens State Bank, New Baltimore, MI.; and Independent Bankers' Bank, Springfield, IL., were closed without being acquired by other institutions.

In all, there now have been 170 failed institutions in 2009 - 140 banks and 30 credit unions.

Here is a rundown of the latest closings:

First Federal Bank of California
First Federal Bank of California, a Federal Savings Bank, Santa Monica, California, was closed by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation as receiver. The FDIC then entered into a purchase and assumption agreement with OneWest Bank, FSB, Pasadena, California, to assume all of the deposits of First Federal Bank of California.

The 39 branches of First Federal Bank of California were to reopen on Saturday as branches of OneWest Bank, FSB. Depositors of First Federal Bank of California will automatically become depositors of OneWest Bank, FSB.

As of September 30, 2009, First Federal Bank of California had approximately $6.1 billion in total assets and $4.5 billion in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $146.3 million.

RockBridge Commercial Bank, Atlanta, GA.
The Federal Deposit Insurance Corporation (FDIC) approved the payout of the insured deposits of RockBridge Commercial Bank, Atlanta, Georgia. The bank was closed by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver.

The FDIC was unable to find another financial institution to take over the banking operations of RockBridge Commercial Bank. As a result, checks to the retail depositors for their insured funds will be mailed on Monday. Brokered deposits will be wired once brokers provide the FDIC with the necessary documents to determine if any of their clients exceed the insurance limits. Customers who placed money with brokers should contact them directly for more information about the status of their funds.

As of September 30, 2009, RockBridge Commercial Bank had approximately $294.0 million in total assets and $291.7 million in total deposits. At the time of closing, the bank had an estimated $2.1 million in uninsured funds. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers. The FDIC estimates the cost of the failure to its Deposit Insurance Fund to be approximately $124.2 million.

Peoples First Community Bank, Panama City, FL.
Peoples First Community Bank, Panama City, Florida, was closed by the Office of Thrift Supervision, which appointed the FDIC as receiver. The FDIC then entered into a purchase and assumption agreement with Hancock Bank, Gulfport, Mississippi, to assume all of the deposits of Peoples First Community Bank.

The 29 branches of Peoples First Community Bank were to reopen during normal business hours beginning Saturday as branches of Hancock Bank. Depositors of Peoples First Community Bank will automatically become depositors of Hancock Bank.

As of September 30, 2009, Peoples First Community Bank had approximately $1.8 billion in total assets and $1.7 billion in total deposits. The Hancock Bank will pay the FDIC a premium of one percent to assume all of the deposits of Peoples First Community Bank.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $556.7 million.

Citizens State Bank, New Baltimore, MI.
Citizens State Bank, New Baltimore, Michigan, was closed by the Michigan Office of Financial and Insurance Regulation, which then appointed the FDIC as receiver. To protect the depositors, the FDIC created the Deposit Insurance National Bank of New Baltimore (DINB), which will remain open for approximately 45 days to allow depositors access to their insured deposits and time to open accounts at other insured institutions.

At the time of closing, the receiver immediately transferred to the DINB all insured savings, checking, and secured public units of Citizens State Bank. Certificates of deposit (CDs) and Individual Retirement Accounts (IRAs) were not transferred over to the DINB. The FDIC will mail checks directly to deposit customers who had CDs and IRAs with Citizens State Bank.

The Huntington National Bank, Columbus, Ohio, will provide operational management of the DINB under a contract with the FDIC. The main office and all branches of Citizens State Bank were to open on Saturday, December 19, 2009. Banking activities, such as direct deposit and writing checks, ATM and debit cards, can continue normally for former customers of Citizens State Bank during the 45-day transition period. It is also important to note that Citizens State Bank official checks will continue to clear and will be issued to customers closing accounts.

All insured depositors of Citizens State Bank are encouraged to transfer their insured funds to other banks. They may do so by asking their new bank to electronically transfer their deposits from the DINB or by writing checks for the amount in their accounts.

As of September 30, 2009, Citizens State Bank had $168.6 million in total assets and $157.1 million in total deposits. At the time of closing, deposits of approximately $803,000 potentially exceeded the insurance limits.

The cost to the FDIC's Deposit Insurance Fund is estimated to be $76.6 million.

New South Federal Savings Bank, Irondale, AL.
New South Federal Savings Bank, Irondale, Alabama, was closed by the Office of Thrift Supervision, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Beal Bank, Plano, Texas, to assume all of the deposits of New South Federal Savings Bank.

The sole branch of New South Federal Savings Bank will reopen on Monday as a branch of Beal Bank. Depositors of New South Federal Savings Bank will automatically become depositors of Beal Bank

As of September 30, 2009, New South Federal Savings Bank had approximately $1.5 billion in total assets and $1.2 billion in total deposits. Beal Bank did not pay the FDIC a premium for the deposits of New South

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $212.3 million.

Independent Bankers Bank, Springfield, IL.
The FDIC created a bridge bank to take over the operations of Independent Bankers' Bank, Springfield, Illinois, after the bank was closed by the Illinois Department of Financial and Professional Regulation Division of Banking, which appointed the FDIC as receiver. The newly created bank is Independent Bankers' Bank Bridge Bank, National Association.

Independent Bankers' Bank did not take deposits directly from the general public nor did it make loans to consumers. It was a commercial bank that provided correspondent banking services to its client banks.

Independent Bankers' Bank had approximately 450 client banks in four states, and operated one regional office. It provided a variety of services for its clients, including clearing accounts, investments, consulting, purchasing loans, and selling loan participations. Since the FDIC created a new bank to take over the operations of Independent Bankers' Bank, there is not expected to be any meaningful impact on the bank's clients.

The creation of the bridge bank allows the client banks to maintain their correspondent banking relationship with the least amount of disruption. The FDIC will operate Independent Bankers' Bank Bridge Bank, to allow preexisting marketing efforts for the bank to continue.

As of September 30, 2009, Independent Bankers' Bank had approximately $585.5 million in assets and $511.5 in deposits. At the time of closing, the bank had an estimated $269,000 in uninsured funds.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $68.4 million.

Imperial Capital Bank, La Jolla, CA.
Imperial Capital Bank, La Jolla, California, was closed by the California Department of Financial Institutions, which appointed the FDIC as receiver. The FDIC then entered into a purchase and assumption agreement with City National Bank, Los Angeles, California, to assume all of the deposits of Imperial Capital Bank.

The nine branches of Imperial Capital Bank will reopen during normal business hours on Monday as branches of City National Bank. Depositors of Imperial Capital Bank will automatically become depositors of City National Bank

As of September 30, 2009, Imperial Capital Bank had approximately $4.0 billion in total assets and $2.8 billion in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $619.2 million.





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