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San Joaquin Bank, Bakersfield, CA Fails 99th Bank Failure This Year

Detective Krum

Detective Krum

San Joaquin Bank in Bakersfield, California failed October 16th and makes the 99th bank failure in 2009.  FDIC, in need of its own bailout, posted the following information:

San Joaquin Bank, Bakersfield, California, was closed today by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. FDIC entered into a purchase and assumption agreement with Citizens Business Bank, Ontario, California, to assume all of the deposits of San Joaquin Bank.

The five branches of San Joaquin Bank will reopen on Monday as branches of Citizens Business Bank. Depositors of San Joaquin Bank will automatically become depositors of Citizens Business Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from Citizens Business Bank that it has completed systems changes to allow other Citizens Business Bank branches to process their accounts as well.

This evening and over the weekend, depositors of San Joaquin Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 29, 2009, San Joaquin Bank had total assets of $775 million and total deposits of approximately $631 million. Citizens Business Bank did not pay the FDIC a premium for the deposits of San Joaquin Bank. In addition to assuming all of the deposits of the failed bank, Citizens Business Bank agreed to purchase essentially all of the assets.

The FDIC and Citizens Business Bank entered into a loss-share transaction on approximately $683 million of San Joaquin Bank’s assets. Citizens Business Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share arrangement is projected to maximize returns on the assets covered by keeping them in the private sector.

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October 19, 2009 - Posted by | 1 | , ,

2 Comments »

  1. Dear Detective

    In posting information for consumers such as myself, please be a little more thorough in listing banks with the same name as being connected. Case in point, your September 2008 posting regarding Riverside Bank having 6 locations and making a comment wondering whether the NY and IL banks were helping the FL banks financially (my paraphrasing). As a stockholder in the Florida Riverside Banking Companies — these are in NO WAY CONNECTED — not by persons, etc….. They just happen to be using the same name Riverside; no board of directors, or any other types of affiliations etc… that may cross over as in the case of the three (now two) Florida banks RNB of Fort Pierce and Riverside of Central Florida.

    Comment by Informed Consumer | October 21, 2009

  2. You may not be as informed as you think. I never said Il or NY banks were helping Florida banks and any implication is your misunderstanding, not mine. It appears you have personal gain from Riverside from your post. If you read the information on this blog, it is clearly repeated many times we are not giving financial advice but posting public record information and we stand by our posts. One final point, our readers are very intelligent and research financial institutions and if they don’t, they receive bank information from potential banks of their future business.

    Comment by Detective Krum | October 22, 2009


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