A Northern California bank reopened Monday.

With a new name, Golden Valley Bank reopened after being closed last Friday by the state Banking Department. On Saturday, a Stanislaus County Superior Court judge approved a bid from Lodi-based Farmers & Merchants Bank to buy Golden Valley. The bank was closed because "significant loan losses exhausted the capital of the bank," according to Howard Gould, senior deputy superintendent of banks. Under the court-approved agreement, Farmers & Merchants will pay the FDIC a purchase premium of $150,000 and will buy some of Golden Valley's installment and real estate loans and other assets for $30.3 million, an FDIC spokesman said. Golden Valley operated two branches in Turlock and one in nearby Hilmar.

Copyright © 2019, Los Angeles Times
EDITION: California | U.S. & World
54°