FDIC APPROVES ASSUMPTION OF INSURED DEPOSITS OF BANK OF NEWPORT, NEWPORT BEACH, CALIFORNIA
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 Bank
of Newport, Newport Beach, California, by Union Bank, San
Francisco, California. Bank of Newport, with total assets of
$174.3 million and total deposits of $159.5 million as of June 23,
was closed today by James E. Gilleran, California Banking
Superintendent, and the FDIC was named receiver.
The failed bank's five offices will reopen as branches of
Union Bank on Monday, August 15. The failed bank's insured
depositors will automatically become depositors of the assuming
Union Bank will assume about $149.6 million in about 19,000
deposit accounts. At the time the bank failed, about $9.9 million
in 350 accounts exceeded the federal insurance limit of $100,000
and will not be assumed by Union Bank.
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 (714) 760-6000 beginning Monday, August 15, 1994, to
The assuming bank will pay a premium of $1.7 million for the
right to receive the failed bank's deposits and will purchase $41.0
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.