They are reopening after the California Department of Financial Institutions closed the bank due to inadequate capital and other weaknesses on Friday, December 18, according to the Federal Deposit Insurance Corp, which oversees banks and insures depositors' balances.
Depositors of Imperial Capital Bank will automatically become depositors of City National Bank and deposits will continue to be insured by the FDIC, so customers do not need to change their banking relationship to keep their deposit insurance coverage.
California's mortgage-heavy banks have been particularly hard-hit by the collapse of the real-estate bubble, as well as the recession that's hobbling other financial institutions.
The FDIC has advised customers to continue using their existing branch until they have received notice from City National Bank that it has completed changes to their systems. Depositors will be able to access their money over the weekend by writing checks or using automated teller machines and checks drawn on the bank will continue to be processed.
As of September 30, 2009, Imperial Capital Bank had approximately $4.0 billion in total assets and $2.8 billion in total deposits.
City National Bank paid the FDIC a .24 percent premium for the right to assume all of the deposits of Imperial Capital Bank and agreed to purchase $3.3 billion of the failed bank's assets, according to the FDIC.