Regulators closed another bank on Friday, putting the total number of failures at 99 for the year.
California-based San Joaquin Bank was the latest casualty of the Federal Deposit Insurance Corp.'s active efforts to shut down banks that have failed to maintain adequate capital levels or adhere to other banking regulations.
To protect depositors, the FDIC entered into a purchase and assumption agreement with nearby Citizens Business Bank, of Ontario, Calif., to assume San Joaquin Bank's approximately $631 million in deposits. Citizens Business Bank did not pay the FDIC a premium for the deposits of San Joaquin Bank, the regulator said.
Citizens Business will also absorb $683 million worth of San Joaquin's assets, including all of its local branches.
The FDIC estimated that the cost to the Deposit Insurance Fund, which guarantees deposits, will be $103 million. That fund has been so depleted by bank failures this year that regulators have asked banks to prepay future years' contributions.
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