California Bank is 2009's Third FailureThe third U.S. bank to fail in 2009 was the 1st Centennial Bank of Redlands, CA. It was closed by the California Department of Financial Institutions on Friday, Jan. 23. The FDIC was appointed as receiver. The FDIC says the First California Bank of Westlake, Village, CA will assume the insure deposits of the failed bank.
1st Centennial Bank had total assets of $803.3 million and total deposits of $676.9 million. About $12.8 million of the deposits exceeded insurance limits. First California will assume the insured deposits for a 5.29 percent premium. It will also purchase $293 million of the failed bank's assets, including cash, cash equivalents and marketable securities. The FDIC will retain the remaining assets for later disposition.
The cost to the FDIC's Deposit Insurance Fund is estimated to be $227 million. 1st Centennial is the first bank to fail in California since Downey Savings and Loan, F.A., Newport Beach, was closed on November 21, 2008 (See Failed Institutions of 2008). The six branches of 1st Centennial are to open on today as branches of First California Bank.