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:
- 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
- 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
- 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
FDIC has acknowledged that the DIF will show a negative balance as of the end of Q3. That doesn’t mean FDIC will be going to taxpayers for funds. Not yet anyway.
No, Sheila still has cash on the balance sheet. And she’ll be getting $45 billion more in Q4 when banks prepay their assessments. This cash will be carried on the DIF balance sheet as deferred revenue, so the balance ($10.4 million at the end of Q2) will continue to be negative.