Arizona Department of Financial Institutions has closed Arizona-based First State Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. However, to protect the depositors, the FDIC has entered into a purchase and assumption agreement with California-based Sunwest Bank, to assume all of the deposits of First State Bank.
Reportedly, the First State Bank will reopen as branches of Sunwest Bank and the depositors of First State Bank will become depositors of Sunwest Bank. Moreover, deposits will continue to be insured by the FDIC. The bank has stated that the customers can continue to use their existing branches until Sunwest Bank can fully integrate the deposit records of First State Bank.
As of July 24, 2009, First State Bank had total assets of $105 million and total deposits of approximately $95 million. In addition to assuming all of the deposits of the failed bank, Sunwest Bank agreed to purchase essentially all of the assets.
