First California Bank, the wholly owned subsidiary of First California Financial, has assumed the insured deposits of 1st Centennial Bank, the wholly owned subsidiary of 1st Centennial Bancorp, from the Federal Deposit Insurance Corporation (FDIC) acting in its capacity as receiver of 1st Centennial Bank.
To protect depositors of 1st Centennial Bank, the Federal Deposit Insurance Corporation entered into a purchase and assumption agreement under which First California Bank assumed all insured deposits of 1st Centennial Bank. Branches previously operated by 1st Centennial will reopen as part of the First California Bank franchise. 1st Centennial’s depositors will automatically become depositors of First California Bank.
CG Kum, president and CEO of First California Financial Group, said: The current economic environment has created significant challenges for many banks throughout the nation. Although we are disheartened to see a bank in our community struggle, we are pleased that First California is positioned to help protect the depositors and financial health of the communities served by the former 1st Centennial Bank branch locations.
Twenty-five U.S. banks failed last year. Since last October, the U.S. Treasury has been using most of the first half of the $700 billion federal bailout fund to buy stock in banks and other financial institutions to assist them resume lending again to clients, according to MSNBC.
