Issue link: https://www.epageflip.net/i/15091
WEEKEND AUGUST 21-22, 2010 Breaking news at: www.redbluffdailynews.com Drew’s 2nd half of life USA Weekend See Inside RED BLUFF Ultraman SPORTS 1B Weather forecast 10A Sunny 88/58 By LAURA URSENY MediaNews Group CHICO — Federal regulators took over Chico-based Butte Community Bank on Friday, after a strategy to recapitalize the local bank apparently failed. Regulators from the Federal Deposit Insurance Corp. seized the bank after it closed for the evening, but stressed to cus- tomers that their accounts were safe. This is the first local bank failure in recent history. Examiners in dark suits and ties pulling wheeled cases entered all the branches a little after 6 p.m. Security personnel stood inside, opening and clos- DAILYNEWS TEHAMACOUNTY DAILY 50¢ T H E V O I C E O F T E H A M A C O U N T Y S I N C E 1 8 8 5 Butte Community Bank seized by FDIC ing doors. It was immediately announced that all 14 Butte branches are being purchased by Rabobank, National Association of El Centro for $425.4 million. Butte branch employees are being hired as well. A call put into Butte Presi- dent John Coger was not returned. FDIC spokeswoman Tricia Wynegar told the Enterprise- Record on Friday that customers have not lost any of their deposits, and that it’s business as usual. Branches with Saturday hours will open as usual; ATMs and online banking works, and checks, debit and credit cards will continue to be honored. Loan payments must also be made. Over the weekend, dozens of FDIC examiners will be work- ing at all Butte branches to “close the bank’s books,” Wyne- gar said. The FDIC has set up a hotline for Butte customers with ques- tions or concerns, 1-800-450- 5417. Today that number is operational from 9 a.m. to 6 p.m. PDT, on Sunday from noon to 6 p.m., and after that 8 a.m. to 8 p.m. “Anyone can call this with questions,” she said. Regarding the bank’s condi- tion, she said, “It had a large vol- ume of loans secured by com- mercial real estate. Those values dropped, and it took a toll on bank capital.” Pacific State Bank in Stock- ton was also put into FDIC receivership Friday, and is being purchased by Rabobank as well for $249.7 million. In May, the FDIC told Butte officials that it needed to expand its capital, telling it to sell more stock or be acquired by another institution. In issuing its orders, the FDIC set a long list of guidelines the bank has to meet, including assurances of qualified manage- ment and meeting capital requirements, and a three-year strategic plan. The bank was unable to raise Bank had branches in Red Bluff, Corning By GEOFF JOHNSON DN Staff Writer Eric Ludwig’s Friday night was off to a bad start. First, his credit card stopped work- ing shy of the limit. Then, Ludwig went to his bank. The Corning Union High School com- puter technician had $72 in his account. But no matter how many times he put his card in, the ATM kept spitting out vague explanations in pur- ple ink. It was then he learned Butte Com- munity Bank had permanently closed. He turned toward the rusty car idling behind him. “We might not have any money, homies,” he said. “I’ll explain it to you when I get to the car.” After several attempts, Ludwig cursed in frustration. Ludwig’s experience surprised Tri- cia Wynegar, a Senior Ombudsman Specialist for the Federal Deposit Insurance Corporation. She attributed his problem to a glitch. “That shouldn’t be the case,” Wyne- gar said. Butte Community Bank was one of eight banks the FDIC took over Friday evening. In its case investments the $500 million bank made in the real estate market backfired and its charter was revoked by the state, she said. “The bidding process took place earlier in the week,” Wynegar said. “That’s the last piece of it. The bank has known its situation for awhile and was doing what they could.” But Butte customers should be shielded from company troubles, she said. Not only should checks continue to Daily News photo by Geoff Johnson Eric Ludwig struggles to get money out of his account Friday evening at Butte Community Bank just after the bank’s acquisition by Rabobank was made public. work and accounts remain untouched, the new chain, the $10 billion Rabobank, plans to hold the same busi- ness hours — meaning none of the 14 former Butte branches should be open for business today. “There are no uninsured depositors every insurer’s money is safe, they can write checks tonight....all that is the same,” she said. Rabobank will even be carrying See BANK, page 9A Adelicious start to a school year By JULIE ZEEB DN Staff Writer CORNING — May- wood Middle School ended its first week of school Fri- day with a long-standing tra- dition in which about 600 students gathered on the field to enjoy watermelon. “It’s been going on for decades,” said Maywood Principal Jeff Harris. “It’s kind of the opening social for the year. The local busi- nesses have always been pretty supportive of it.” The watermelon students enjoyed Friday was a dona- tion from Safeway who gave the school a whole pal- let of watermelons, David Cory, the new Assistant Principal said. “It’s a great way to start a new year,” Cory said. “It builds their social skills, gets them excited about the new year and lets them know it’s not all hard work.” Cory, who comes from Mickey Cox Elementary School in Clovis, which is near Fresno, said the year was off to a smooth start. “I’m excited to be in a smaller town where there’s a sense of community and there’s a tight knit feel,” Cory said. His previous school was about the same size and while they did not have a watermelon feed the school had other traditions like movie nights and sporting events, Cory said. This was the first water- melon feed he had ever been to, but he really liked it, he said. The Watermelon Feed was started by the teachers in 1983 and until 1995 also included a watermelon seed spitting contest, teacher Phil Barletto, one of the event’s founders, said. “Watermelon was about 10 cents a pound and every teacher threw in a couple of dollars to buy about 1,000 pounds of watermelon and it’s been a tradition ever since,” Barletto said. Eighth grade student 7 5 8 5 5 1 6 9 0 0 1 9 Averee Mulliner said she was glad Maywood had the watermelon feed as one of its traditions. “I think it’s really good because the kids get out of the classroom, get to visit with each other and eat healthy snacks,” Mulliner said. “It’s a clean slate start to the new year.” Sixth-grader Alyssa Montes said she’s been looking forward to the watermelon feed since hear- ing about it on the first day of school. “It’s great because you get to meet the teachers and students and interact with each other,” said sixth grad- er Maria Rosales. Sixth grader Alonzra Oceguera said she also enjoyed the watermelon feed. “I think it’s a good idea because everyone’s having a nice time and you get to know everybody,” Oceguera said. Seventh grader Ronnie Hammond said she likes hanging out with her friends and thinks the watermelon feed is a great way to start the new year and fellow sev- enth grader Mirella Sanchez agrees. “It’s really fun to hang out with the whole school, partying it up and eating watermelon,” Sanchez said. Daily News photo by Julie Zeeb Maywood’s new Assistant Principal David Cory talks with students Friday at the annual Watermelon Feed. • “Main Street or Wall Street” banking, which do you want As Local As.... CALL TODAY (530) 529-1222 237 South Main Street • Still offering better than free checking • Now offering Health Savings Accounts • Local decision making • Community Support sufficient capital by working through banking consultant Cap- pello Capital Corp. of Santa Monica it hired earlier this sum- mer. Over the last several quarters, Butte reported loss after loss, withdrew from Nasdaq, and stopped issuing dividends. Rabobank director of market- ing Sean Dowdall said his bank has been looking at non-metro areas for expansion, recently purchasing a bank in Napa, and also opening eight branches in Modesto and Merced. It has main offices in Roseville. “We’ve want to expand (into Northern California) for some See BUTTE, page 9A Raids net 166,000 marijuana plants A series of marijuana raids on US Forest Service land yielded 166,000 plants, hundreds of pounds of processed marijuana and a handful of arrests this week in western Tehama County. Between Monday and Friday, agents from the state Attor- ney General’s office, the United States Forest Service, the California Department of Fish and Game, the California Highway Patrol, the Tehama Interagency Drug Enforcement task force and the Campaign Against Marijuana Planting task force stormed the Rat Trap Gap and Tomhead Mountain areas. Altogether, agents hit about 20 sites and seized about 100 pounds of processed marijuana, according to a press release from the Attorney General’s office. They also found hundreds of pounds of fertilizers, pesti- cides, and other contaminants requiring cleanup efforts from the forest service and Fish and Game. A series of enforcement stops on vehicles leading to USFS lands led to the arrest of Antonio Miranda Solorio, 45, Atwater, Phil Josafina Solorio and Francisco Miguel Ros- ales, 33, and an additional 200 pounds of processed mari- juana, according to the press release. Additional arrests are expected. Anyone encountering a marijuana garden or marijuana cultivation is advised to leave the area. Anyone with infor- mation on marijuana cultivation within the forest is asked to contact either the USFS, the Tehama county Sheriff’s Department or to call 224-4750. —Staff Report Grand jury indicts migrant for $19 million marijuana operation in Tehama County, See Page 9A