FDIC APPROVES ASSUMPTION OF INSURED DEPOSITS OF PIONEER BANK, FULLERTON, CALIFORNIA: MONEY-DESK DEPOSITS TO BE PAID OUT
FOR IMMEDIATE RELEASE
Andrew Porterfield (714) 442-1131
The Board of Directors of the Federal Deposit Insurance
Corporation has approved the assumption of insured deposits of
Pioneer Bank, Fullerton, California, by Chino Valley Bank, Ontario,
California. Pioneer Bank, with total assets of $136.8 million and
total deposits of $128.5 million in 4,300 accounts (as of March
31), 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 $37.0 million in 374 accounts,
will be paid out up to the $100,000 federal insurance limit.
Of the failed bank's three offices, only the Fullerton main
office will reopen as a branch of Chino Valley Bank. Customers can
get access to their accounts at the failed bank's main office in
Fullerton beginning Monday, July 11, 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 Monday, July 11, 1994.
Chino Valley Bank will assume about $78.5 million in about
3,700 deposit accounts. At the time the bank failed, about $13.0
million in 221 accounts exceeded the federal insurance limit of
$100,000 and will not be assumed by Chino Valley 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 the failed bank's main office at (714) 773-0600 beginning
Saturday, July 9, 1994, to arrange payment.
The assuming bank will pay a premium of $1.3 million for the
right to receive the failed bank's deposits and will purchase $33.9
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.