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FDIC APPROVES ASSUMPTION OF INSURED DEPOSITS OF BANK OF SAN PEDRO, SAN PEDRO, CALIFORNIA: MONEY-DESK DEPOSITS TO BE PAID OUT

FOR IMMEDIATE RELEASE
PR-43-94 (7-15-94)
Media Contact:
Andrew Porterfield (714) 442-1131

The Board of Directors of the Federal Deposit Insurance Corporation has approved the assumption of insured deposits of Bank of San Pedro, San Pedro, California, by Home Bank, Signal Hill, California. Bank of San Pedro, with total assets of $123.4 million and total deposits of $115.8 million in about 10,300 accounts as of June 16, was closed today by James E. Gilleran, California Banking Superintendent, and the FDIC was named receiver. The failed bank's money-desk deposits, which totaled $27.1 million in 300 accounts, will be paid out up to the $100,000 federal insurance limit.

Of the failed bank's six offices, only the offices on 740 S. Gaffey Street and 1090 N. Western Avenue will reopen as branches of Home Bank.

Of the remaining offices, customers of the failed bank's headquarters and Avalon offices can get access to their accounts at 740 S. Gaffey St.; customers of the 1225 W. 190th. St. office can get access at the 1090 N. Western Avenue office; and customers of the Long Beach office can get access at Home Bank's Signal Hill headquarters on 2633 Cherry Ave. Customers can get access to their accounts beginning Monday, July 18, 1994, during regular business hours. The failed bank's depositors will automatically become depositors of the assuming bank. Customers of the failed bank's money desk will have their deposits, up to the federal $100,000 insurance limit, mailed to them beginning Saturday, July 16, 1994.

Home Bank will assume about $82.2 million in about 10,000 deposit accounts. At the time the bank failed, about $6.4 million in 210 accounts exceeded the federal insurance limit of $100,000 and will not be assumed by Home Bank.

The FDIC Board of Directors also voted to make a prompt advance payment to uninsured depositors equal to 50 percent of uninsured claims. Uninsured depositors can call an FDIC claims agent at (310) 548-1281 beginning Saturday, July 16, 1994, to arrange payment.

The assuming bank will pay a premium of $55,000 for the right to receive the failed bank's deposits and will purchase $22.1 million of the failed bank's assets.

The Board of Directors approved the deposit assumption under its authority to do so whenever it determines that such a transaction will reduce the potential loss to the FDIC. The FDIC notes that its claim on recoveries from the sale of the failed bank's assets will have priority over non-depositor creditors of the failed bank.

Last Updated 07/13/1999 communications@fdic.gov