Banking Failures – 99 And Counting
The number of failed banks for 2009 has risen to 99. San Joaquin Bank of Bakersfield, California was closed by the California Department of Financial Institutions on Friday. The FDIC as receiver, entered into a purchase and assumption agreement with Citizens Business Bank or Ontario, California.
San Joaquin Bank, as of September 29, 2009, had total assets of $775 million and total deposits of $631 million. Citizens Business Bank has agreed to assume all deposits and essentially all assets of San Joaquin Bank. The loss share agreement with the FDIC will cover $683 million of the assets.
The five branchs of San Joaquin Bank will reopen on Monday as branches of Citizens Business Bank. Customers can access their money over the weekend by writing checks, using ATMs, or debit cards.
The loss to the FDIC Deposit Insurance Fund (DIF) is estimated at $103 million. This will represent the tenth failed bank this year in the state of California.
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