Valencia Bank Deposits Will Go to Barclays : Judge to Make Final Ruling on Deal Today

An Orange County Superior Court judge tentatively approved the transfer of all insured deposits from the failed Valencia Bank of Santa Ana to Barclays Bank of California.

The ruling by Judge Robert C. Todd was not made final because there was some uncertainty over whether he could take such an action during a Sunday court session. Final approval of the transfer will be made by Todd at 8:30 a.m. today if attorneys for Valencia, Barclays or the Federal Deposit Insurance Corp. do not come up with any objections.

Under the agreement worked out with the state Banking Department and the FDIC, San Francisco-based Barclays will essentially act as an agent for the FDIC in taking control of $91.9 million in 10,600 Valencia accounts.

The FDIC, which insures deposits up to $100,000 per account, said 46 customers holding an additional $2.1 million--the amount over the insured limit--will be given receivers’ certificates, which will entitle them to share in whatever money is left after liquidation.

Under the agreement with Barclays, Valencia’s six offices will not reopen.

Barclays is to pay the FDIC a premium of $251,000 for the right to receive the transferred deposits and will purchase other assets of the failed bank for $66.3 million.

Valencia was seized and declared insolvent Friday by state and federal regulators, who said that “significant loan and operating losses had exhausted” the bank’s capital.

Examiners working through the weekend have determined that Valencia had total assets of $96.7 million and $94 million in deposits at the close of business Friday. In the past three years, the bank has lost $10.4 million.