- Tri Counties Bank Assumes All of the Deposits of Granite Community Bank, N.A.
- June 4, 2010 | Author: Stephen G. Racioppi
- Law Firm: Alston & Bird LLP - Atlanta Office
On Friday, the Office of the Comptroller of the Currency closed Granite Community Bank, N.A., and appointed the FDIC as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Tri Counties Bank, headquartered in Chico, California, to assume all of the deposits of the failed bank.
As of March 31, 2010, Granite Community Bank had approximately $102.9 million in total assets and $94.2 million in total deposits. Tri Counties Bank did not pay the FDIC a premium for the deposits of Granite Community Bank, but did agree to purchase essentially all of the failed bank's assets. The FDIC and Tri Counties Bank entered into a loss-share transaction on $89.3 million of Granite Community Bank’s assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $17.3 million. Granite Community Bank is the 77th FDIC-insured institution to fail in the nation this year, and the sixth in California.