CA. Bank Closed; 113th Failed Institution of 2009

San Joaquin Bank Acquired by Citizens Business Bank San Joaquin Bank of Bakersfield, California, was closed on Friday, Oct. 16, by the California Department of Financial Institutions.

This was the only bank failure of the week, and the 113th failed institution of 2009. So far this year, 99 banks and 14 credit unions have been closed, acquired or placed into conservatorship.

The Federal Deposit Insurance Corporation (FDIC) was appointed as receiver of San Joaquin Bank. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Citizens Business Bank, Ontario, California, to assume all of San Joaquin Bank's deposits.

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.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $103 million. So far, this year, 15 institutions (10 banks, 5 credit unions) have failed in CA. The last FDIC-insured institution closed in the state was Affinity Bank, Ventura, on August 28, 2009.

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