December 12, 2009 – 12:52 am

Valley Capital Bank, National Association, Mesa, Arizona, is the 132nd FDIC-insured institution to fail in the nation this year, and the forth in Arizona. The agency estimates that the cost to the Deposit Insurance Fund (DIF) will be $7.4 million.

Valley Capital Bank, National Association, Mesa, Arizona, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Enterprise Bank & Trust, Clayton, Missouri, to assume all of the deposits of Valley Capital Bank.

Valley Capital Bank’s sole branch will reopen on Monday as a branch of Enterprise 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. Customers should continue to use their existing branches until they receive notice from Enterprise Bank that it has completed systems changes to allow other Enterprise Bank branches to process their accounts as well.

This evening and over the weekend, depositors of Valley Capital 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, 2009, Valley Capital Bank had total assets of approximately $40.3 million and total deposits of approximately $41.3 million. Enterprise Bank paid the FDIC a 2 percent premium for the right to assume all of the deposits of Valley Capital Bank. In addition to assuming all of the deposits of the failed bank, Enterprise Bank agreed to purchase essentially all of the failed bank’s assets.

The FDIC and Enterprise Bank entered into a loss-share transaction on approximately $29.8 million of Valley Capital Bank’s assets. Enterprise Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing 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:

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-405-8357. The phone number will be operational this evening until 9:00 p.m., Mountain Standard Time (MST); on Saturday from 9:00 a.m. to 6:00 p.m., MST; on Sunday from noon to 6:00 p.m., MST; and thereafter from 8:00 a.m. to 8:00 p.m., MST.

Interested parties can also visit the FDIC’s Web site for Valley Capital Bank.