And for all the Vineyard clients here on the boards, CB&T, when they took over Alliance bank, reduced all existing CDs to 1% so if you have a high interest CD, consider it gone as of tomorrow.
Vineyard Bank
California Bank & Trust, San Diego, California, Assumes All of the Deposits of Vineyard Bank, National Association, Rancho Cucamonga, California
Vineyard Bank, National Association, Rancho Cucamonga, California, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with California Bank & Trust, San Diego, California, to assume all of the deposits of Vineyard Bank, N.A., excluding those from brokers.
Vineyard Bank, N.A.'s sixteen offices will reopen as branches of California Bank & Trust during normal business hours. Depositors of Vineyard Bank, N.A. will automatically become depositors of California Bank & Trust. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until California Bank & Trust can fully integrate the deposit records of Vineyard Bank, N.A.
Over the weekend, depositors of Vineyard Bank, N.A. can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of March 31, 2009, Vineyard Bank, N.A. had total assets of $1.9 billion and total deposits of approximately $1.6 billion. In addition to assuming all of the deposits of the failed bank, California Bank & Trust agreed to purchase approximately $1.8 billion of assets. The FDIC will retain the remaining assets for later disposition.
California Bank & Trust will purchase all deposits, except about $134 million in brokered deposits, held by Vineyard Bank, N.A. The FDIC will pay the brokers directly for the amount of their funds. Customers who placed money with brokers should contact them directly for more information about the status of their deposits.
The FDIC and California Bank & Trust entered into a loss-share transaction on approximately $1.5 billion of Vineyard Banks, N.A.'s assets. California Bank & Trust will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.
Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-523-8159. The phone number will be operational this evening until 9:00 p.m., Pacific Daylight Time (PDT); on Friday and Saturday from 9:00 a.m. to 6:00 p.m., PDT; on Sunday from noon to 6:00 p.m., PDT; and thereafter from 8:00 a.m. to 8:00 p.m., PDT. Interested parties can also visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/vineyard.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $579 million. California Bank & Trust's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Vineyard Bank, N.A. is the 56th FDIC-insured institution to fail in the nation this year, and the seventh in California. The last FDIC-insured institution to be closed in the state was Mirae Bank, Los Angeles, on June 26, 2009.
# # #
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,246 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov <http://www.fdic.gov/> , by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-125-2009
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I find it very strange the the agencey in charge of bank lending practices allowed all this to happen and now is forcing these same banks out of business. 
sphss
Soon It will be all one World Bank.
sphssSoon It will be all one World Bank.
Wow, I was just at the La Verne branch on Wednesday. I have 3 persoanl accounts, 1 business account, and 2 mortgages through Vineyard.
I find it very strange the the agencey in charge of bank lending practices allowed all this to happen and now is forcing these same banks out of business.
Soon It will be all one World Bank.
Fits with one world government. :|err
I don't know anything about this particular bank, but it is sad to see the community banks fail in this manor. Community banks support local business. In my life this is the 3rd go round and my small banks I was with have always been bought out. It's getting unnerving to do business with them in these situations, but I feel it is important to our communities.
One other closure in our area yesterday as well.
First-Citizens Bank and Trust Company, Raleigh, North Carolina, Assumes All of the Deposits of Temecula Valley Bank, Temecula, California
First-Citizens Bank and Trust Company, Raleigh, North Carolina, Assumes All of the Deposits of Temecula Valley Bank, Temecula, California
Temecula Valley Bank, Temecula, California, was closed today by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First-Citizens Bank and Trust Company, Raleigh, North Carolina, to assume all of the deposits of Temecula Valley Bank, excluding those from brokers.
Temecula Valley Bank's eleven offices will reopen on Monday as branches of First-Citizens Bank and Trust Company. Depositors of Temecula Valley Bank will automatically become depositors of First-Citizens Bank and Trust Company. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until First-Citizens Bank and Trust Company can fully integrate the deposit records of Temecula Valley Bank.
Over the weekend, depositors of Temecula Valley Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of May 31, 2009, Temecula Valley Bank had total assets of $1.5 billion and total deposits of approximately $1.3 billion. In addition to assuming all of the deposits of the failed bank, First-Citizens Bank and Trust Company agreed to purchase essentially all of the assets.
First-Citizens Bank and Trust Company will purchase all deposits, except about $304 million in brokered deposits, held by Temecula Valley Bank. The FDIC will pay the brokers directly for the amount of their funds. Customers who placed money with brokers should contact them directly for more information about the status of their deposits.
The FDIC and First-Citizens Bank and Trust Company entered into a loss-share transaction on approximately $1.3 billion of Temecula Valley Bank's assets. First-Citizens Bank and Trust Company will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.
Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-930-5170. The phone number will be operational this evening until 9:00 p.m., Pacific Daylight Time (PDT); on Friday and Saturday from 9:00 a.m. to 6:00 p.m., PDT; on Sunday from noon to 6:00 p.m., PDT; and thereafter from 8:00 a.m. to 8:00 p.m., PDT. Interested parties can also visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/temecula.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $391 million. First-Citizens Bank and Trust Company's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Temecula Valley Bank is the 57thth FDIC-insured institution to fail in the nation this year, and the eighth in California. The last FDIC-insured institution to be closed in the state was Vineyard Bank, National Association, Rancho Cucamonga, also today.
I feel that Vineyard's lending standard were ridiculous over the past couple of years. They grew the bank off of over leveraging the commercial real estate market. Have a lot of stories about going against them, offering clients over leveraged amounts on their properties, most of them now not performing. Many community banks lent this way over the past couple of years as money was easy. A slowing economy, higher vacancy rates on property, and bad management of assets are what ultimately led to this.I don't know anything about this particular bank, but it is sad to see the community banks fail in this manor. Community banks support local business. In my life this is the 3rd go round and my small banks I was with have always been bought out. It's getting unnerving to do business with them in these situations, but I feel it is important to our communities.
This bank wasn't if, it was when and I'm surprised it took this long. They propped up their balance sheet with high interest brokered CDs that could only be a temporary fix on leverage ratios but not profitability ratios, especially when you couple that with bad loans.
I agree that their commercial lending standards were ridiculous, but Vineyard was the best community bank that I've ever had. The people at the local branches were/are the best. Their in-branch customer service convinced me to switch all my personal accounts over to them.I feel that Vineyard's lending standard were ridiculous over the past couple of years. They grew the bank off of over leveraging the commercial real estate market. Have a lot of stories about going against them, offering clients over leveraged amounts on their properties, most of them now not performing. Many community banks lent this way over the past couple of years as money was easy. A slowing economy, higher vacancy rates on property, and bad management of assets are what ultimately led to this.
This bank wasn't if, it was when and I'm surprised it took this long. They propped up their balance sheet with high interest brokered CDs that could only be a temporary fix on leverage ratios but not profitability ratios, especially when you couple that with bad loans.
ChumpChange
What is the advantage of purchasing a brokered deposit as to just buying a CD direct from the bank? Convenience? Safety? Your last posted article has me wondering.
What is the advantage of purchasing a brokered deposit as to just buying a CD direct from the bank? Convenience? Safety? Your last posted article has me wondering.
A brokered deposit is just where somebody's stock broker / money manager places those deposits at banks offering the highest rates. The Fed considers it "hot" money or "hot" deposits as the only reason that money is there is due to the rate and not some other banking relationship. As soon as that CD is up, the broker will take it and place it at the next bank that is offering the best rate, thus leaving the bank's balance sheet as fast at it came. Thus a broker is placing the CD there for their client as their job is to get the highest rate of return. Banks can but pools of these deposits as well on the secondary market.What is the advantage of purchasing a brokered deposit as to just buying a CD direct from the bank? Convenience? Safety? Your last posted article has me wondering.
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