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.
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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.
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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.
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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.
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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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