CVB Financial Corp. acquires failed San Joaquin banks
0 Comments | Inland Valley Daily Bulletin, Oct 19, 2009 | by Matt Wrye
Citizens Business Bank just got bigger.
As five San Joaquin Bank branches in the Bakersfield region opened as Citizens branches Monday, investors of Citizens’ parent company were waiting for information to be filed on how much in potential loan losses the bank will share with the Federal Deposit Insurance Corp. under the buyout.
Out of $683 million in questionable loans and assets, Citizens will absorb 20 percent of any losses on the first $144 million, and then 5 percent of any losses on the next $539 million, according to Chris Myers, president and CEO of Citizens’ parent company, CVB Financial Corp.
Bakersfield-based San Joaquin Bank, owned by San Joaquin Bancorp, failed Friday after attempts to recapitalize amid regulatory pressure. Too many of the bank’s construction and development loans went sour.
“We’re really not at risk on the loan side,” Myers said, noting the performing loans Citizens is adding to its portfolio. “They did have a lot of real estate construction and land loans … but their underlying is a good, core bank
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