Commentaries

from Rolfe Winkler:

Bank failure Friday

#10

• Failed bank: First National Bank of Georgia, Carrollton GA
• Acquiring bank: Community & Southern Bank, Carrollton GA
• Vitals: at 9/30/09, assets of $832.6m, deposits of $757.9m
• Estimated DIF damage: $260.4m

#11

• Failed bank: Florida Community Bank, Immokalee FL
• Acquiring bank: Premier American Bank NA, Miami FL
• Vitals: at 9/30/09, assets of $875.5m, depoists of $795.5m
• Estimated DIF damage: $352.6m

#12

• Failed bank: Marshall Bank NA, Hallock MN
• Acquiring bank: United Valley Bank, Cavalier ND
• Vitals: at 9/30/09, assets of $59.9m, deposits of $54.7m
• Estimated DIF damage: $4.1m

#13

from Rolfe Winkler:

Bank failure Friday

The year has started off slowly: Only 4 closings the first half of January. Expect FDIC to pick up the pace...

#2

• Failed bank: Town Community Bank & Trust, Antioch IL
• Acquiring bank: First American Bank, Elk Grove Village IL
• Vitals: as of 9/30, assets of $69.6m, deposits of $67.4m
• Estimated DIF damage: $17.8m

#3

• Failed bank: St. Stephen State Bank, St. Stephen MN
• Acquiring bank: First State Bank of St. Joseph, St. Joseph MN
• Vitals: as of 9/30, assets of $24.7m, deposits of $23.4m
• Estimated DIF damage: $7.4m

#4

• Failed bank: Barnes Banking Co, Kaysville UT
• Acquiring bank: None.
• Vitals: as of 9/30, assets of $827.8m, deposits of $786.5m
• Estimated DIF damage: $271.3m

from Rolfe Winkler:

Tonight’s bank failures: $14.5 billion combined assets

Wow....huge night....$14.5 billion in combined assets from tonight's failures. The biggest fish is First Fed, with $6.1 billion of assets. First Fed was the last of the big option ARM lenders. Seems like FDIC wants to get a lot off its plate before the holidays...

#134

• Failed bank: Rockbridge Commercial Bank, Atlanta GA
• Acquiring bank: None
• Vitals: at 9/30 assets of $294m, deposits of $291.7m
• DIF damage estimate: $124m

A rare payout transaction. Actually the sixth so far this year. I spoke to FDIC's Greg Hernandez who gave me some interesting particulars on this bank regarding why it couldn't find a buyer.

First, it had no retail locations at all, just office space. Moreover, 80% of its deposit accounts were CDs, most of which were brokered from outside the bank's immediate area. Not the most attractive deposit accounts that stronger banks are looking to acquire.

#135

• Failed bank: People's First Community, Panama City  FL
• Acquiring bank: Hancock Bank, Gulfport MS
• Vitals: as of 9/30, assets of $1.8 billion, deposits of $1.7 billion
• DIF damage estimate: $557 million

from Rolfe Winkler:

Bank failure Friday

It was a slow night. One small bank failed.

#124

• Failed bank: Commerce Bank of SW FL, Fort Myers FL
• Acquiring bank: Central Bank, Stillwater MN
• Vitals: at 8/28, assets of $79.7m, deposits of $76.7m
• DIF damage: $23.6m

Central has been busy. They also acquired the assets of Riverview Community Bank and Jennings State Bank in October, as well as Mainstreet Bank in August.

from Rolfe Winkler:

Bank failure Friday

IBERIABANK is busy tonight, acquiring $3.1 billion of failed bank assets. The bank also bought nearly $600m of assets from the estate of CapitalSouth Bank of Alabama back in August.

After these transactions, IBERIABANK will have increased its balance sheet nearly 67% since June.

It's worth nothing that IBERIA received $90m worth of TARP money, though it exited the program in May.

There are cases in the past when other banks have taken multiple failures, expanding significantly, only to fail themselves later on. One example I recall (though am having trouble Googling the evidence) is Talman Federal in IL.

Is IBERIA too weak to be be growing so quickly? Perhaps not. The bank's Texas ratio is around 24%, well below the dangerous 100% threshold. If readers have thoughts, please chime in with a comment.

#121

• Failed bank: Century Bank, Sarasota FL
• Acquiring bank: IBERIABANK, Lafayette LA
• Vitals: at 10/31, assets of $728m, deposits of $631m
• DIF damage: $344m

from Rolfe Winkler:

Bank failure Friday

As per usual, we begin in Georgia. The last one of the night is a big one.

#116

• Failed bank: United Security Bank, Sparta GA
• Acquiring bank: Ameris Bank, Moultrie GA
• Vitals: as of 9/14/09, assets of $157m, deposits of $150m
• DIF damage: $58 million

Ameris Bank also bought American United two weeks ago.

#117

• Failed bank: Home Federal Savings Bank, Detroit MI
• Acquiring bank: Liberty Bank and Trust, New Orleans LA
• Vitals: as of 9/24/09, assets of $14.9m, deposits of $12.8m
• DIF damage: $5.4 million

#118

from Rolfe Winkler:

#100….and counting (+ charts)

Another failure in Georgia. And two in Naples.

#100

• Failed bank: Partners Bank, Naples FL
• Acquiring bank: Stonegate Bank, Ft. Lauderdale FL
• Vitals: as of 9/30, assets of $66 million, deposits of $65m
• DIF damage: $28.6m

#101

• Failed bank: American United Bank, Lawrenceville GA
• Acquiring bank: Ameris Bank, Moultrie GA
• Vitals: as of 8/11, assets of $111 million, deposits of $102m
• DIF damage: $44m

#102

• Failed bank: Hillcrest Bank Florida, Naples FL
• Acquiring bank: Stonegate Bank, Ft. Lauderdale FL
• Vitals: as of 10/1, assets of $83 million, deposits of $84m
• DIF damage: $45m

from Rolfe Winkler:

Bank failure Friday, Bair on TBTF at Buttonwood

At Buttonwood, Sheila Bair noted that the DIF's balance, its net worth, is now negative. They have $20 billion+ of cash on hand, but much is accounted for by the fund's contingent loss reserve, which is to say the money is spoken for based on failures already in the pipeline.

The plan to accelerate assessments on banks is an accounting gimmick that protects their earnings and capital. That said, it's good news FDIC will be raising more cash, $45 billion is the estimate.

Remember, because of this accounting treatment, the DIF will have more cash, but its balance will continue to be negative for some time. The $45 billion will be accounted for, not as capital, but as deferred revenue, which is the gimmick to protect bank capital.

Important: expect LOTS of sloppy reporting on this point. Most news articles in future will tell you the DIF is negative without noting that cash is on the balance sheet.

#99

• Failed bank: San Joaquin Bank, Bakersfield CA
• Acquiring bank: Citizens Business Bank, Ontario CA
• Vitals: as of Sept 29, assets of $779 million, deposits of $631 million
• DIF damage: $103 million

At the conference, I asked Sheila Bair would she support policies to proactively shrink too-big-to-fail banks?

from Rolfe Winkler:

Bank failure Friday

Later this evening, I'll have a post on stats for all failed banks since the beginning of 2007. In the meantime, we have our first failure of Q4:

#96

• Failed bank: Warren Bank, Warren MI
• Acquiring bank: Huntington National, Columbus OH
• Vitals: as of July 31, assets of $538 million, deposits of $501 million
• DIF damage: $275 million

#97

• Failed bank: Jennings State Bank, Spring Grove MN
• Acquiring bank: Central Bank, Stillwater MN
• Vitals: as of July 31, assets of $56.3 million, deposits of $52.4 million
• DIF damage: $11.7 million

#98

• Failed bank: Southern Colorado National Bank, Pueblo CO
• Acquiring bank: Legacy Bank, Wiley CO
• Vitals: as of Sept 4, assets of $39.5 million, deposits of $31.9 million
• DIF damage: $6.6 million

from Rolfe Winkler:

Bank Failure Friday

Sheila got an early start this week, normally the first failures happen after 6PM EST.

#95

• Failed bank: Georgian Bank, Atlanta GA
• Acquiring bank: First Citizens Bank & Trust
• Vitals: as of July 24th, assets of $2 billion, deposits of ~$2 billion
• DIF Damage: $892 million

Yet another failure in Georgia!