Canyon National Bank Failure Marks First In State For 2011

After being closed by federal regulators last week, Canyon National Bank will reopen Monday as branches of Costa Mesa-based Pacific Premier Bank.

The bank has two branches in the Coachella Valley – in Palm Desert at 74150 Country Club Drive and in Palm Springs at 901 E. Tahquitz Canyon Way.

Depositors of Canyon National Bank will automatically converge with Pacific Premier Bank. They will continue to be insured by the Federal Deposit Insurance Corp.

This is the 18th FDIC-insured institution to fail in the nation this year, and the first in California since Nov. 5. That’s when Woodland Hills-based Western Commercial Bank and Westminster-based First Vietnamese American Bank failed.

Canyon National Bank had about $210.9 million in assets and $205.3 million in total deposits as of Dec. 31, according to Greg Hernandez of the FDIC.

Pacific Premier Bank will assume all of the failed bank’s deposits and has agreed to purchase essentially all of its assets.

“We want depositors of Canyon National to be confident in knowing that

they will be banking with a strong, locally owned financial institution that is well established in the Southern California market,” said Steven R. Gardner, the president and chief executive officer Pacific Premier Bancorp, Inc., the holding company of Pacific Premier Bank.

“We also reassure all customers of Canyon National that they will continue to conduct business as normal with the employees with whom they have built a solid long term relationship.''

The failure will likely cost the FDIC’s Deposit Insurance Fund about $10 million, according to Hernandez.

IF YOU ARE A CUSTOMER: Continue to use your existing branch until you receive notice from Pacific Premier Bank that is has completed system changes to allow other of the bank’s branches to process their accounts as well. Customers with questions about the closure can call the FDIC at (800) 930-5169 from noon to 6 p.m. Sunday and 8 a.m. to 8 p.m. thereafter. Information is also available online at www.fdic.gov/bank/individual/failed/canyonstate.html.

Pacific Premier Bank has branches in Los Angeles, Orange and San Bernardino counties.

City News Service contributed to this report.