On the corner of El Paseo and San Luis Ray, “Palm Desert National Bank had been on the problem bank list for a while,”Edith Gray with the Federal Deposit Insurance Corporation said.
However, at 6:00 on Friday, it was finally checked off that list when the Federal Deposit Insurance Corporation took control of the bank .
“Palm Desert Bank had deposited in real estate in their market and the few real estate loans that were not able to reform and, as a result in this soft market, caused the bank’s capital to be completely eroded,” Gray said.
This was the first Ccalifornia bank the government took over this year. Pacific Premier Bank acquired Palm Desert National – not the first bank they’ve acquired.
“We acquired Canyon Bank last year. It was a similar situation,” Steve Gardner, the CEO of Pacific Premier Bank, said.
Troubled commercial real estate loans also weakened Canyon Bank. Pacific Premier Bank not only assumed all of the deposits of Palm Desert National — worth over 120 million — but they’ll also purchase all of the assets.
If all goes according to plan, customers shouldn’t feel even the slightest hiccup.
“All their deposits were transferred to the acquiring institution,” Gray said. “Right now they don’t need to do anything. It’s business as usual.”
Come Monday, the doors to what was Palm Desert National will open again — now a branch of Pacific Premier.
“We are keeping this location here. The signage will eventually change,” Gardner said.
One other big question – will the employee count change?
“That remains to be seen over time. Hopefully we can keep as many employees as possible. That’s how we handled the Canyon National Transaction last year,” Gardner said.
Customers with questions about the transaction should call the FDIC toll-free at 1-800-591-2820.
The new owners claim this acquisition helps valley bankers.
“Pacific premiere Bank is a Bauer 5 star rated insititution which is the highest rating. With us being such a healthy strong well capitalized bank, we can come in and likely better serve those businesses and consumers,” Garder said.