The California Department of Financial Institutions (DFI) has announced that regulators have closed Temecula Valley Bank, citing inadequate capital. As of June 30, 2009, Temecula Valley Bank had total assets of approximately $1.4 billion and total deposits of approximately $1.28 billion.
Reportedly, 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, the DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of Temecula Valley Bank. The depositors of Temecula Valley Bank are protected by the FDIC. The FDIC has accepted a bid from First-Citizens Bank & Trust Company of Raleigh, North Carolina, to assume the branch deposits and significantly all the assets of Temecula Valley Bank.
The DFI is responsible for administering state laws regulating state-licensed financial institutions: banks, credit unions, industrial banks, trust companies, offices of foreign banks, issuers of travelers’ checks and payment instruments and money transmitters.
