FDIC APPROVES ASSUMPTION OF INSURED DEPOSITS OF WESTERN COMMUNITY BANK, CORONA, CALIFORNIA: MONEY-DESK DEPOSITS TO BE PAID OUT
FOR IMMEDIATE RELEASE
Andrew Porterfield (714) 442-1131
The Board of Directors of the Federal Deposit Insurance
Corporation has approved the assumption of insured deposits of
Western Community Bank, Corona, California, by Bank of San
Bernardino, San Bernardino, California. Western Community, with
total assets of $60.6 million and total deposits of $54.8 million
in about 5,500 accounts as of May 31, was closed today by James E.
Gilleran, California Banking Superintendent, and the FDIC was named
receiver. The failed bank's money-desk deposits, which totaled
about $10 million, will be paid out up to the $100,000 federal
Of the failed bank's three offices, only the Corona office on
321 E. 6th. St. will reopen as a branch of Bank of San Bernardino.
Customers of the remaining two offices in Norco and Ontario will
have access to their accounts at the reopened Corona office
beginning Monday, August 1, 1994, during regular business hours.
The failed bank's depositors will automatically become depositors
of the assuming bank. Customers of the failed bank's money desk
will have their deposits, up to the federal $100,000 insurance
limit, mailed to them beginning Saturday, July 30, 1994.
Bank of San Bernardino will assume approximately $38.6 million
in about 5,500 deposit accounts. At the time the bank failed,
roughly $6.2 million in 54 accounts exceeded the $100,000 federal
insurance limit and will not be assumed by Bank of San Bernardino.
The FDIC Board of Directors also voted to make a prompt
advance payment to uninsured depositors equal to 50 percent of
uninsured claims. Uninsured depositors can call an FDIC claims
agent at (909) 734-4110 beginning Saturday, July 30, 1994, to
The assuming bank will pay a premium of $673,000 for the right
to receive the failed bank's deposits and will purchase $16.0
million of the failed bank's assets.
The Board of Directors approved the deposit assumption under
its authority to do so whenever it determines that such a
transaction will reduce the potential loss to the FDIC. 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.