November 21, 2008 – 6:33 pm

Downey Savings & Loan Association, Newport Beach, reached the end of the line today as it became the 21st FDIC casualty this year.

Federal authorities seized Newport Beach-based Downey Savings and Loan as the thrift fell below capital requirements to stay in business, authorities said late Friday.

The Federal Deposit Insurance Corp. announced it was turning over management of the 51-year-old thrift to Minneapolis-based U.S. Bank. As part of the same action, the FDIC also turned over Pomona-based PFF Bank & Trust to U.S. Bank.

The combined 213 branches of the two failed banks will operate under normal hours Saturday.

“Depositors will automatically become depositors of U.S. Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage,” the announcement said.

Read the official FDIC press release here.

Downey Savings had total assets of $12.8B and total deposits of $9.7B as of September 30, 2008.  The acquiring institution is U.S. Bank, National Association, Minneapolis, MN, which will receive the banking operations and all the deposits.

Read the official FDIC announcement here.


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