FIs closed: Pacific State Bank, Stockton and Butte Community Bank, Chico California, USA
On Friday, 20 August, 2010, Pacific State Bank, Stockton, California and Butte Community Bank, Chico, California were closed by the California Department of Financial Institutions, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver.
Butte Community Bank, Chico, California, and Pacific State Bank, Stockton, California, were closed today by the California Department of Financial Institutions, which then appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for the two banks.
To protect depositors, the FDIC entered into purchase and assumption agreements with Rabobank, National Association, El Centro, California, to assume all the deposits and essentially all the assets of the two failed banks, which were not affiliated with one another.
Collectively, the failed banks operated 23 branches, which will reopen as branches of Rabobank, National Association under their normal business hours, including those offices with Saturday hours.
Butte Community Bank has 14 branches and Pacific State Bank has nine branches.
As of 30 June, 2010, Butte Community Bank had total assets of USD498.8 million and total deposits of USD471.3 million; Pacific State Bank had total assets of USD312.1 million and total deposits of USD278.8 million.
Rabobank, National Association will pay the FDIC a premium of 4.05 percent to assume all of the deposits of Butte Community Bank but it did not pay the FDIC a premium for the deposits of Pacific State Bank.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Butte Community Bank will be USD17.4 million and for Pacific State Bank, USD32.6 million.
These closings bring the total for the year to 116 banks in the USA and the seventh and eighth in California.
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