The California Department of Financial Institutions (DFI) has said that regulators have closed Affinity Bank, citing inadequate capital.
According to DFI, as of July 31, 2009, Affinity Bank had total assets of approximately $1.2 billion and total deposits of approximately $1 billion. The DFI has been closely monitoring the bank because of its inadequate capital level. The DFI had ordered it to increase its capital reserves to a safe and sound level but efforts by the bank to do so, were unsuccessful.
Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of Affinity Bank. The depositors of Affinity Bank are protected by the FDIC. The FDIC has accepted a bid from Pacific Western Bank, San Diego to assume the deposits and substantially all the assets of Affinity Bank.
