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Local

Seized Valley Bank Reopens Under New Ownership

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(credit: AP/FILE)

(credit: AP/FILE)

WOODLAND HILLS (CBS) — Western Commercial Bank will reopen on Monday as a branch of Westlake Village-based First California Bank three days after being closed by the California Department of Financial Institutions.

Western Commercial Bank depositors will automatically become depositors of First California Bank and continue to be insured by the Federal Deposit Insurance Corp.

Depositors can access their money by writing checks or using automated teller machine or debit cards, said Greg Hernandez of the FDIC.

Checks drawn on the bank will continue to be processed. Loan customers should continue making payments as usual, Hernandez said.

Customers should continue to use the sole branch of Western Commercial Bank until they receive notice from First California Bank that it has completed systems changes to allow other First California Bank branches to process their accounts as well.

Customers with questions about the closure can call the FDIC at (800) 405-6318 from 8 a.m. to 8 p.m. Information is also available online by clicking here.

The Woodland Hills-based Western Commercial Bank had approximately $98.6 million in total assets and $101.1 million in total deposits as of Sept. 30, Hernandez said.

First California Bank will pay the FDIC a premium of 0.5 percent to assume all the deposits of Western Commercial Bank. In addition to assuming all of Western Commercial Bank’s deposits, First California Bank agreed to purchase essentially all of its assets.

The FDIC and First California Bank entered in a loss-share transaction on $83.9 million of Western Commercial Bank’s assets. First California Bank will share in the losses on the asset pools covered under the loss-share agreement.

Hernandez estimated that Western Commercial Bank’s failure will cost the FDIC’s Deposit Insurance Fund $25.2 million.

First California Bank’s acquisition of all of Western Commercial Bank’s deposits was the “least costly” resolution for the fund compared to the alternatives, Hernandez said.

Western Commercial Bank was the 141th FDIC-insured institution to fail in the nation this year, and the 11th in California, Hernandez said.

(©2010 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

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