FDIC APPROVES ASSUMPTION OF INSURED DEPOSITS OF COMMERCEBANK, NEWPORT BEACH, 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
CommerceBank, Newport Beach, California, by California State Bank,
West Covina, California. CommerceBank, with total assets of $156.5
million and total deposits of $140.0 million in about 4,600
accounts as of May 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 $71 million in
700 accounts, will be paid out up to the $100,000 federal insurance
Of the failed bank's four offices, only the Newport Beach
headquarters on 1201 Dove St. and Orange office on 170 Main St.
will reopen as branches of California State Bank. Customers of the
remaining two offices will have access to their accounts at the
reopened branch in Newport Beach beginning Monday, August 1, 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 30, 1994.
California State Bank will assume about $56.2 million in about
3,900 deposit accounts. At the time the bank failed, about $12.8
million in 176 accounts exceeded the federal insurance limit of
$100,000 and will not be assumed by California State Bank.
The FDIC Board of Directors also voted to make a prompt
advance payment to uninsured depositors equal to 67 percent of
uninsured claims. Uninsured depositors can call an FDIC claims
agent at (714) 851-9000 beginning Saturday, July 30, 1994, to
The assuming bank will pay a premium of $380,000 for the right
to receive the failed bank's deposits and will purchase $82.5
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.