1st Centennial Bank in California Closed By California Department of Financial Institutions

1st Centennial Bank in California was closed today by the California Department of Financial Institutions, marking the third bank closing of 2009. And we're still only in January!

As of January 9, 2009, 1st Centennial had total assets of $803.3 million and total deposits of $676.9 million, of which there were approximately $12.8 million that exceeded the insurance limits. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers.

What will happen to the $12.8 million is unclear. In the case of Indymac Bank's closure, the FDIC paid out some money above FDIC insurance limits.

Customers with accounts in excess of $250,000 should contact the FDIC toll-free at 1-800-822-1918 to set up an appointment to discuss their deposits. This phone number will be operational this evening until 9:00 p.m., PST; on Saturday from 9:00 a.m. to 6:00 p.m., PST; on Sunday from 12:00 p.m. to 6:00 p.m., PST; and thereafter from 8:00 a.m. to 8:00 p.m., PST. Customers who would like more information on today's transaction should visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/centennial.html.

Beginning Monday, depositors of 1st Centennial with more than $250,000 at the bank may visit the FDIC's Web page "Is My Account Fully Insured?" at http://www2.fdic.gov/dip/Index.asp to determine their insurance coverage.

First California agreed to assume the insured deposits for a 5.29% premium. It will also purchase approximately $293 million of the failed bank's assets. The assets are comprised mainly of cash, cash equivalents and marketable securities. The FDIC will retain the remaining assets for later disposition.