On Friday, the California Department of Financial Institutions closed Sonoma Valley Bank, headquartered in Sonoma, California, and appointed the FDIC as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Westamerica Bank, headquartered in San Rafael, California, to assume all of the deposits of Los Padres Bank.
As of June 30, 2010, Sonoma Valley Bank had approximately $337.1 million in total assets and $255.5 million in total deposits. Westamerica Bank will pay the FDIC a premium of 2.0% to assume all of the deposits of Sonoma Valley Bank and will purchase essentially all of the assets of the failed bank.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $10.1 million. Sonoma Valley Bank is the 118th FDIC-insured institution to fail in the nation this year, and the 10th in California. Westamerica Bank previously acquired another failed bank in February 2009.