First Vietnamese American Bank, Westminster, California

First Vietnamese American Bank, Westminster, California, makes it 143 FDIC-insured institution to fail in the nation this year, and the twelve in California. The agency estimates that the cost to the Deposit Insurance Fund (DIF) will be $9.6 million.

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.

If you should have any further questions, please do not hesitate to visit the FDIC webpage for First Vietnamese American Bank.