Feb. 10--All 39 branches of failed County Bank reopened for business under the ownership of Westamerica Bank today, the Federal Deposit Insurance Corp. confirmed.

The California Department of Financial Institutions on Friday closed Merced-based County Bank, which is owned by Capital Corp. of the West. The state agency immediately appointed the FDIC as the receiver.

As in other bank failures, the FDIC had worked out a deal in advance to sell County Bank's deposits and branches. The buyer was Westamerica Bank of San Rafael. Regulators took over the bank after it closed Friday to expedite the transition. Nine branches with Saturday hours opened as usual, only this time as Westamerica branches.

The move came as little surprise after County Bank reported little more than a week ago that its losses linked to bad real estate development loans had swelled to about $96 million. It reported its first annual loss, $3.7 million, at the end of 2007.

Rob Thorson, chief financial officer for Westamerica, said his company has had a presence in the Northern San Joaquin Valley for many years and knows what services the region's banking customers need and want.

Thorson said Westamerica bid on County Bank through the FDIC's marketing program for failing financial institutions because it was a good fit for his company. He said Westamerica specializes in small business and professional loans, much as County Bank did.

Westamerica is also very active in providing support to farmers and ag-related businesses, Thorson said. "We are very positive about ag lending."

Thorson stressed that Westamerica is very focused on customer service and will base its decisions about integrating County Bank into its system based on what's best for depositors and other customers.

Westamerica has some branches in Modesto and other cities where County Bank also has offices. Thorson wasn't sure how long it would take for Westamerica to determine which branches it will keep open and which ones it will close.

As for the fate of County Bank employees, he said Westamerica will evaluate all of them. Thorson said Westamerica wants employees its customers are the most comfortable with as well as those with strong business networks in their communities.

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