Branches to reopen as Union Bank on Monday
SAN RAFAEL -- The California Department of Financial Institutions seize Tamalpais Bank after business hours today and appointed the Federal Deposit Insurance Corp. as receiver. It's the first closure of a locally based bank since the current economic recession began.
Union Bank of San Francisco will assume all of the deposits of Tamalpais Bank. The seven branches of Tamalpais Bank will reopen on Monday as branches of Union Bank.
[See today's story, "Tamalpais Bancorp had $50 million loss provision"]
Union Bank is opening its first Sonoma County branch in May in Sonoma. The bank currently has three North Bay branches and will have 11 branches as of Monday, making it the eighth largest bank in the North Bay among institutions not locally based and the 12th largest overall.
Depositors of Tamalpais Bank will automatically become depositors of Union Bank and will continue to be insured by the FDIC, the release from the FDIC said, “so there is no need for customers to change their banking relationship to retain their deposit insurance coverage.”
Customers should continue to use their former Tamalpais Bank branch until they receive notice from Union Bank, N.A., that it has completed systems changes to allow other Union Bank branches to process their accounts as well.
As of Dec. 31, 2009, Tamalpais Bank had approximately $628.9 million in total assets and $487.6 million in total deposits. Union Bank, N.A. paid the FDIC a premium of 2.0 percent to assume all of the deposits of Tamalpais Bank.
In addition to assuming all of the deposits, Union Bank, N.A. agreed to purchase essentially all of the failed bank's assets.
The FDIC and Union Bank, N.A. entered into a loss-share transaction on $522.3 million of Tamalpais Bank's assets. Union Bank, N.A. will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.
Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-830-4706. 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. PDT; and thereafter from 8:00 a.m. to 8:00 p.m., PDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/tamalpais.html.