Riverside County registered a total of two bank failures since 2012, according to a Federal Deposit Insurance Corp. report.
These bank failures have resulted in a significant financial loss of $29.2 million, while holding $205.4 million in customers’ deposits and the bank’s total assets of $210 million.
The most significant and financially damaging bank failure occurred in Palm Desert with Palm Desert National Bank. It occurred in April 2012, resulting in a substantial loss of $26.3 million. At the time of the failure, the bank held a substantial amount of $129 million in customer deposits.
There have been 127 bank failures across the country since 2012, accounting for an estimated loss of $45.1 billion. That means an average of 2.5 bank failures per state. This average lags behind the total number of bank failures in California, which stood at four during the same period.
Silicon Valley Bank (SVB) was shut down in March 2023, reports of significant losses and investors withdrawing much of their funds. The SVB collapse and loss of roughly $20 billion is considered the largest bank failure in the U.S. since the 2008 collapse of Washington Mutual. FDIC declared that First Citizens Bank will assume control over Silicon Valley Bank’s assets and operations.
Silicon Valley Bank’s recent collapse has become one of the most prominent bank failures in the United States, second only to the notable downfall of Washington Mutual in 2008. The repercussions of this crisis have been substantial, with estimated losses reaching an astonishing $20 billion.
The Federal Deposit Insurance Corp. has announced that First Citizens Bank will take over the bank’s assets and operations.
