May 15 - Central Arizona Bank, Scottsdale, has been closed by the Arizona Department of Financial Institutions, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Western State Bank, Devils Lake, N.D., to assume all of the deposits of Central Arizona Bank.
As of March 31, 2013, Central Arizona Bank had approximately $31.6 million in total assets and $30.8 million in total deposits. In addition to assuming all of the deposits of the failed bank, Western State Bank agreed to purchase essentially all of the failed bank’s assets.
Customers with questions about the transaction should call the FDIC toll-free at 800-423-6395. Interested parties also can visit the FDIC's website at www.fdic.gov/bank/individual/failed/centralaz.html.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $8.6 million. Compared to other alternatives, Western State Bank's acquisition was the least costly resolution for the FDIC's DIF. Central Arizona Bank is the 13th FDIC-insured institution to fail in the nation this year, and the second in Arizona. The last FDIC-insured institution closed in the state was Gold Canyon Bank, Gold Canyon, on April 5, 2013.