Another Friday, another bank failure! Officially, this one is the first with an Orange County HQ since Bank of Newport failed in August 1994. Yes, almost 14 years ago …
Regulators the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation closed three-branch First Heritage Bank of Newport Beach (a primarily corporate bank with assets of $254 million and deposits of $233 million) and 25-branch First National Bank of Reno (assets of $3.4 billion and deposits of $3.0 billion.)
Both were owned by First National Bank Holding Co. of Scottsdale, Ariz., which concentrated its efforts on mortgage making and handling homeowner association accounts. Back in June, First Heritage got a stern warning from OCC regulators. Read IT HERE!
As for the money at the bank, here’s what you need to know (FDIC press release IS HERE) …
- Both banks were sold to Mutual of Omaha Bank of Nebraska, that makes its SoCal debut with the deal. Mutual of Omaha Bank, part of that insurance empire, paid a 4% premium to get the failed banks’ deposits, no less.
- Both banks will open as Mutual of Omaha Bank branches on Monday.
- Mutual of Omaha will take all deposits — insured and uninsured. No saver will lose any money. That’s unlike Pasadena-based IndyMac Bank’s failure on July 11 where uninsured depositors got 50 cents on the $1 plus what amounts to a dicey I.O.U.
- This weekend, customers can access their money by writing checks or using ATM or debit cards as usual. Borrowers should make loan payments as usual. More information IS HERE or call 866-674-8944 or 1-800-523-8089.
- Cost to the industry’s deposit insurance fund is $862 million.
This year to date, seven FDIC-insured banks have been closed, the most U.S. bank failures since 12 were seized in 2002. (By the way, Pioneer Bank of Fullerton and Commercebank of Newport Beach also failed in ‘94.)
Register reporter Hang Nguyen tell us that on Saturday morning outside of First Heritage’s 4675 MacArthur Court office, Richard Schmalzer, regional ombudsman for the FDIC, said he has not seen any customers come to the office since it was closed at 6 p.m. on Friday, which was after its regular business hours. There were 2 to 3 phone calls from customers on Friday night, he said.
Have any customers withdrawn their money from the bank since the closure? None that he’s aware of, he said. But electronic withdrawals wouldn’t be be known until Monday at the earliest.
Some First Heritage employees at the MacArthur Court office stayed until 10:30 p.m. Friday, helping FDIC workers acquire info about the bank. The bank employees returned to the office at 9 a.m. Saturday.
As in typical situations like this, FDIC paid for one local police officer around the clock since 6 p.m. Friday for personal safety and security of documents. There have been no incidents, Schmalzer said.
Other banking news …
Foreclosures, Bankruptcy, Gas and Food Prices, Inflation, Joblosses will hit Orange County soon. Save your money for a raining days ahead. The worst has yet to come. No Bailout.
Seems like Newport Beach is getting a reputation for bank failures.
I’m willing to bet big bucks that this will become a regular Friday night feature for some time to come.
hey lunatic-fringe
I agree. It was interesting that no articles or warnings etc..etc..was issued. and the all powerful OCR didnt even have anything about the bank failing until sat am. i read about it on the drudgereport last night.
move the money to MMF or savings and get ready for the storm ahead. friday nights will be the new play offs for banks going down.
what OC bank will be next?
As in the days of Noah, so will be the coming of the Son of Man…
Jim Sinclair’s been warning about this for years.
http://www.jsmineset.com
http://www.bullnotbull.com
http://www.fallstreet.com
http://www.infowars.com
Guess who’s paying that $821 million the FDIC is paying out? That’s right, you, the taxpayer.
Your congressmen and women get paid if a bank fails or not. They should be voted out.
Your SEC seems to be understaffed and misguided. The head of the SEC is from Orange County too.
The Federal Reserve is the biggest tax burden on US citizens. The Fed causes inflation.
Look up Jim Sinclair’s website. He’ll explain this, and has for years told everyone banks will go under.
fallstreet dot com is banned by the moderator?
bullnotbull dot com is banned by the moderator?
the bank of national bubble will be next…
if no one is explaining inflation, and the fact that the US Dollar is going down in value, some uneducated senior citizens are about to have inflation take their life savings.
And so not only is the National Debt/Deficit, Social Security commitments, and other things being thrown on our grandchildren’s backs, now our parents and grandparents are becoming reliant on their children.
This is an emergency that a lot of people don’t understand, or don’t want to understand.
I read this on DrudgeReport last night too, and wondered why the Register had nothing about it on their site. They finally caught up.
On the bright side, I always like to watch Mutual of Omaha’s Wild Kingdom. They should bring that TV show back.
National Bubble…. great video. The best part was Paulson being asked where is the bailout money going to come from? well… uh well..uh… the taxpayer. Sad but true.
This was also called First National Bank of Nevada in Las Vegas area, but most just knew it as the Bank of Nevada (same logo just “Bank of Nevada” instead of “1st Heritage Bank”).
Joke of the day : I’m going to buy bank stocks because Hank Paulson says he has a plan.