Four Banks Fail on Nov. 5
Actions Raise 2010 Tally to 165 Failed InstitutionsThese closures raise the total number of failed institutions to 165 so far in 2010.
The latest failures are:
K Bank, Randallstown, Md.
K Bank, Randallstown, Md., was closed by the Maryland Office of Financial Regulation, which appointed the Federal Deposit Insurance Corp. as receiver. The FDIC entered into a purchase and assumption agreement with Manufacturers and Traders Trust Company (M&T Bank), Buffalo, N.Y., to assume all of the deposits of K Bank, except certain brokered deposits. Brokered deposit customers should contact their brokers directly about the status of their accounts.
The seven branches of K Bank will reopen over the weekend as branches of M&T Bank. Depositors of K Bank will automatically become depositors of M&T Bank. Deposits will continue to be insured by the FDIC. Customers of K Bank should continue to use their existing branch until they receive notice from M&T Bank.
M&T Bank did not pay the FDIC a premium for the deposits of K Bank. In addition to assuming all of the deposits of the failed bank, M&T Bank agreed to purchase approximately $410.8 million of the failed bank's assets. The FDIC will retain the balance of the assets for later disposition.
The FDIC and M&T Bank entered into a loss-share transaction on $289 million of K Bank's assets. M&T Bank will share in the losses on the asset pools covered under the loss-share agreement.
K Bank had approximately $538.3 million in assets.
The FDIC estimates the cost to the Deposit Insurance Fund will be $198.4 million.
Western Commercial Bank, Woodland Hills, Calif.
Western Commercial Bank, Woodland Hills, Calif., was closed by the California Department of Financial Institutions, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with First California Bank, Westlake Village, Calif., to assume all of the deposits of Western Commercial Bank.
The sole branch of Western Commercial Bank will reopen on Monday as a branch of First California Bank. Depositors of Western Commercial Bank will automatically become depositors of First California Bank. Deposits will continue to be insured by the FDIC. Customers of Western Commercial Bank should continue to use their existing branch until they receive notice from First California Bank.
First California Bank will pay the FDIC a premium of 0.5 percent to assume all of the deposits of Western Commercial Bank. First California Bank also agreed to purchase essentially all of the assets.
The FDIC and First California Bank entered into a loss-share transaction on $83.9 million of Western Commercial Bank's assets. First California Bank will share in the losses on the asset pools covered under the loss-share agreement.
Western Commercial Bank had approximately $98.6 million in assets.
The estimated cost to the DIF will be $25.2 million.
Pierce Commercial Bank, Tacoma, Wash.
Pierce Commercial Bank, Tacoma, Wash., was closed by the Washington Department of Financial Institutions, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Heritage Bank, Olympia, Wash., to assume all of the deposits of Pierce Commercial Bank.
The sole branch of Pierce Commercial Bank will reopen on Monday as a branch of Heritage Bank. Depositors of Pierce Commercial Bank will automatically become depositors of Heritage Bank. Deposits will continue to be insured by the FDIC. Customers of Pierce Commercial Bank should continue to use their existing branch until they receive notice from Heritage Bank.
First California Bank will pay the FDIC a premium of 0.5 percent to assume all of the deposits of Western Commercial Bank. First California Bank also agreed to purchase essentially all of the assets.
Pierce Commercial Bank had approximately $221.1 million in assets.
The estimated cost to the DIF will be $21.3 million.
First Vietnamese American Bank, Westminster, Calif.
First Vietnamese American Bank, Westminster, Calif., was closed by the California Department of Financial Institutions, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Grandpoint Bank, Los Angeles, to assume all of the deposits of First Vietnamese American Bank.
The sole branch of First Vietnamese American Bank will reopen on Saturday as a branch of Grandpoint Bank. Depositors of First Vietnamese American Bank will automatically become depositors of Grandpoint Bank. Deposits will continue to be insured by the FDIC. Customers of First Vietnamese American Bank should continue to use their existing branch until they receive notice from Grandpoint Bank.
First California Bank will pay the FDIC a premium of 0.5 percent to assume all of the deposits of Western Commercial Bank. First California Bank also agreed to purchase essentially all of the assets.
First Vietnamese American Bank had approximately $48 million in assets.
The estimated cost to the DIF will be $9.6 million.