State Closes Imperial Capital Bank
(San Francisco, CA) – The California Department of Financial Institutions (DFI) announced today that regulators have closed Imperial Capital Bank citing inadequate capital and other material weaknesses.
As of November 30, 2009, Imperial Capital Bank, located in La Jolla, had total assets of approximately $4 billion and total deposits of approximately $2.7 billion. The DFI has been closely monitoring the bank and had ordered it to increase its capital reserves to a safe and sound level, but efforts by the bank to do so were unsuccessful.
The closure was conducted with the cooperation of the Commissioners of Maryland and Nevada.
Immediately following the closure, the DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of Imperial Capital Bank. The depositors of Imperial Capital Bank are protected by the FDIC to the extent of any applicable deposit insurance. For information about FDIC coverage limits and requirements, visit www.fdic.gov or call toll-free 1-877-ASK-FDIC.
All branches of Imperial Capital Bank will reopen on Monday as branches of City National Bank, Los Angeles, with no disruption in service. Over the weekend, Imperial Capital Bank’s depositors can access their insured deposits 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.
The DFI oversees the secure operation of California’s state-chartered financial institutions. DFI ensures public confidence in financial institutions by protecting the interests of depositors, borrowers, shareholders and consumers through enforcement of state laws. In addition to posting information about its licensees, the DFI Web site features consumer tips on a variety of financial topics and consumer brochures in seven languages.
DFI reports to Business, Transportation & Housing Agency Secretary Dale E. Bonner and Governor Arnold Schwarzenegger.
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