Regulators on Friday shut two banks in California and two smaller banks in Georgia and South Dakota, boosting to 57 the number of federally insured banks to fail this year.The Federal Deposit Insurance Corp. was appointed receiver of the four banks. The two biggest were Temecula Valley Bank, in Temecula, Calif., with $1.5 billion in assets and deposits of about $1.3 billion as of May 31 and Vineyard Bank, National Association, of Rancho Cucamonga, Calif. It had assets of $1.9 billion and $1.6 billion in deposits as of March 31.
The two smaller banks were First Piedmont Bank, based in Winder, Ga., which had about $115 million in assets and $109 million in deposits as of July 6 and BankFirst, based in Sioux Falls, S.D., with around $275 million in assets and $254 million in deposits as of April 30.
The FDIC said all of Temucula's deposits will be assumed by First-Citizens Bank and Trust Company of Raleigh, N.C. The bank also will purchase essentially all of the assets. San Diego-based California Bank & Trust agreed to assume the deposits of Vineyard Bank, excluding about $134 million from brokers. California Bank & Trust will purchase about $1.8 billion of assets. The FDIC will retain the remaining assets for later disposition.
The FDIC and First-Citizens struck a loss-share agreement on about $1.3 billion of Temecula's assets. The agency and California Bank & Trust agreed to a loss-share transaction for about $1.5 billion of Vineyard assets.
All of First Piedmont's deposits will be assumed by First American Bank and Trust Co. of Athens, Ga., which also agreed to buy about $111 million of its assets. Alerus Financial, based in Grand Forks, N.D., agreed to assume all the deposits of BankFirst as well as $72 million in assets.
In addition, the federal agency and First American Bank and Trust entered into a loss-sharing agreement covering about $90 million of First Piedmont Bank's assets. And Beal Bank Nevada, based in Las Vegas, agreed to acquire $177 million of BankFirst's loans.
Friday's move brings the number of bank closings in California this year to eight.