California shuts 1st Centennial Bank
The California Department of Financial Institutions closed Redlands-based 1st Centennial Bank late Friday, saying its six branches will reopen Monday as part of First California Bank of Camarillo.
Like many Inland Empire banks, 1st Centennial ran into trouble funding home builders. It was the third U.S. bank to fail this year and the first in California since Downey Savings of Newport Beach on Nov. 21.
The Federal Deposit Insurance Corp. estimated 1st Centennial’s failure would cost the deposit insurance fund $227 million. The bank had $677 million in deposits as of Jan. 9. That included an estimated $12.8 million that exceeded insurance limits -- money that customers will lose access to, the agency said.
Insured deposits made through brokers will be paid back to customers through those intermediaries. First California is assuming all other insured deposits, with 1st Centennial accounts becoming First California accounts.
Customers who had more than $250,000 in deposits at 1st Centennial can call the FDIC at (800) 822-1918 starting today to set up appointments to discuss their funds. The FDIC website also has information about 1st Centennial’s failure: www.fdic. gov/bank/individual/failed/ centennial.html.
First California agreed to buy $293 million of the failed bank’s $803 million in assets. The FDIC will eventually seek to sell the remaining assets.
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