FULLERTON, Calif. -- Pioneer Bank, a $137 million-asset bank in Fullerton, Calif., became the seventh bank to fail this year. The July 8 closing, however, was the third in California this year. Pioneer's $78.5 million in insured deposits were assumed by Chino Valley Bank, Ontario, Calif. Chino Valley, which plans to shut down two of Pioneer's three offices, also bought $34 million of the failed bank's assets.
The Federal Deposit Insurance Corp. said about $13 million in 221 accounts exceeded the $100,000 insurance limit. The agency said it expects recovery from the sale of Pioneer's other assets to cover at least 50% of what these uninsured depositors lost. So the FDIC decided to repay half of the losses upfront.