Two More Banks Fail, Making 57 in 2009

Federal banking regulators on Friday closed two more banks. Both banks were based in California marking the 56th & 57th bank failure of 2009. The pace of bank failures appears to be accelarating as the year goes on.

From the FDIC:

Vineyard Bank, National Association, Rancho Cucamonga, California, was closed today by the Office of the Comptroller of the Currency, which appointed the (FDIC) as receiver.

As of March 31, 2009, Vineyard Bank, N.A. had total assets of $1.9 billion and total deposits of approximately $1.6 billion. In addition to assuming all of the deposits of the failed bank, California Bank & Trust agreed to purchase approximately $1.8 billion of assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $579 million. … Vineyard Bank… is the seventh in California. The last FDIC-insured institution to be closed in the state was Mirae Bank, Los Angeles, on June 26, 2009.

From the FDIC:

Temecula Valley Bank, Temecula, California, was closed today by the California Department of Financial Institutions, which appointed the (FDIC) as receiver.

As of May 31, 2009, Temecula Valley Bank had total assets of $1.5 billion and total deposits of approximately $1.3 billion. . In addition to assuming all of the deposits of the failed bank, First-Citizens Bank and Trust Company agreed to purchase essentially all of the assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $391 million. … Temecula Valley Bank is the…and the eighth in California. The last FDIC-insured institution to be closed in the state was Vineyard Bank, National Association, Rancho Cucamonga, also today.

The struggling economy and falling home prices are clearly taking a toll on financial institutions.

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