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Pacific Coast National Bank in California seized
Toronto News.Net
Friday 13th November, 2009
Pacific Coast National Bank, of San Clemente, a leading Southern California-based community business bank, was shut down Friday by the Office of the Comptroller of the Currency.
The Federal Deposit Insurance Corporation (FDIC) was appointed as receiver.
Pacific Coast's banking operations extended from San Clemente to South Orange County and North San Diego County.
To protect depositors, the FDIC entered into a purchase and assumption agreement with Sunwest Bank, Tustin, California, to assume all of the deposits of Pacific Coast National Bank.
The two branches of Pacific Coast National Bank will reopen on Monday as branches of Sunwest Bank. Depositors of Pacific Coast National Bank will automatically become depositors of Sunwest 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," an FDIC statement issued late on Friday said. "Customers should continue to use their existing branches until Sunwest Bank can fully integrate the deposit records of Pacific Coast National Bank."
"This evening and over the weekend, depositors of Pacific Coast National 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," said the FDIC statement.
As of August 31, 2009, Pacific Coast National Bank had total assets of $134.4 million and total deposits of approximately $130.9 million. Sunwest Bank did not pay a premium to assume all of the deposits of Pacific Coast National Bank. In addition to assuming all of the deposits of the failed bank, Sunwest Bank agreed to purchase essentially all of the assets.
Customers who have questions about Friday's closure can call the FDIC toll-free at 1-800-913-3067. The phone number will be operational on Saturday from 9:00 a.m. to 6:00 p.m., PST; on Sunday from noon to 6:00 p.m., PST; and thereafter from 8:00 a.m. to 8:00 p.m., PST.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $27.4 million.
Pacific Coast National Bank is the 123rd FDIC-insured institution to fail in the nation this year, and the fifteenth in California. The last FDIC-insured institution closed in the state was United Commercial Bank, San Francisco, on November 6, 2009.  Email this story to a friend
Comments on this story
bankalchemist
11-14-09, 12:45 PM |
Pacific Coast National Bank becomes 123rd victim of FDIC
this bank failed because the board was blind as to how a bank works and Denny Lindeman the chairman was not willing to let new investors funds in the bank. So the shareholders lost in the end.
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