FDIC APPROVES ASSUMPTION OF INSURED DEPOSITS OF PACIFIC HERITAGE BANK, LOS ANGELES, CALIFORNIA
FOR IMMEDIATE RELEASE
Andrew Porterfield (714) 442-1131
The Board of Directors of the Federal Deposit Insurance
Corporation has approved the assumption of the insured deposits of
Pacific Heritage Bank, Los Angeles, California, by California
Federal Bank, FSB, Los Angeles, California. Pacific Heritage Bank,
with total assets of $155.6 million, was closed by Conrad W.
Hewitt, California Superintendent of Banks, on Friday, July 28,
1995, and the FDIC was named receiver.
The failed bank's three offices will reopen on Monday, July
31, as offices of California Federal. The failed bank's depositors
will automatically become depositors of the assuming bank.
California Federal will assume approximately $138.4 million in
about 10,300 deposit accounts. At the time the bank closed, about
200 accounts totaling $8.2 million exceeded the federal insurance
limit of $100,000 and will not be assumed by California Federal.
The FDIC Board of Directors also voted to make an advance
payment to uninsured depositors equal to 48 percent of uninsured
claims. Uninsured depositors can call an FDIC staff member at
(213) 770-2462 beginning Monday, July 31, to arrange an
California Federal will pay a premium of $752,000 for the
right to receive the failed bank's deposits and will purchase $31.5
million of the failed bank's assets.
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.