Friday, November 5, 2010

143

Press Releases
Grandpoint Bank, Los Angeles, California, Assumes All of the Deposits of First Vietnamese American Bank, Westminster, California

FOR IMMEDIATE RELEASE
November 5, 2010
Media Contact:
Greg Hernandez (202) 898-6984
Cell: (202) 340-4922
Email: ghernandez@fdic.gov

In Vietnamese - PDF (PDF Help)

First Vietnamese American Bank, Westminster, California, was closed today by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Grandpoint Bank, Los Angeles, California, to assume all of the deposits of First Vietnamese American Bank.

The sole branch of First Vietnamese American Bank will reopen on Saturday as a branch of Grandpoint Bank. Depositors of First Vietnamese American Bank will automatically become depositors of Grandpoint Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of First Vietnamese American Bank should continue to use their existing branch until they receive notice from Grandpoint Bank that it has completed systems changes to allow other Grandpoint Bank branches to process their accounts as well.

This evening and over the weekend, depositors of First Vietnamese American Bank can access their money 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.

As of September 30, 2010, First Vietnamese American Bank had approximately $48.0 million in total assets and $47.0 million in total deposits. Grandpoint Bank did not pay the FDIC a premium for the deposits of First Vietnamese American Bank. In addition to assuming all of the deposits of the failed bank, Grandpoint Bank agreed to purchase essentially all of the assets.

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-760-3639. The phone number will be operational this evening until 9:00 p.m., Pacific Daylight Time (PDT); on Saturday from 9:00 a.m. to 6:00 p.m., PDT; on Sunday from noon to 6:00 p.m., Pacific Standard Time (PST); and thereafter from 8:00 a.m. to 8:00 p.m., PST. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/firstvietnamese.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $9.6 million. Compared to other alternatives, Grandpoint Bank's acquisition was the least costly resolution for the FDIC's DIF. First Vietnamese American Bank is the 143rd FDIC-insured institution to fail in the nation this year, and the twelfth in California. The last FDIC-insured institution closed in the state was Western Commercial Bank, Woodland Hills, earlier today.

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