Tonight’s bank failures: $14.5 billion combined assets

December 18, 2009

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

#136

  • Failed bank: Citizens State Bank, New Baltimore MI
  • Acquiring bank: FDIC creates a “Deposit Insurance National Bank”
  • Vitals: at 9/30, assets of $169m, deposits of $157m
  • DIF damage estimate: $77m

#137

  • Failed bank: New South Federal Savings Bank, Irondale AL
  • Acquiring bank: Beal Bank, Plano TX
  • Vitals: as of 9/30 assets of  $1.5 billion, deposits of $1.2 billion
  • DIF damage estimate: $212 million

#138

  • Failed bank: Independent Bankers’ Bank, Springfield IL
  • Acquiring bank: FDIC creates bridge bank
  • Vitals: as of 9/30 assets of $586m, deposits of $512m
  • DIF damage estimate: $68.4 million

Independent Bankers’ Bank did not take deposits directly from the general public nor did it make loans to consumers. It was a commercial bank that provided correspondent banking services to its client banks.

Independent Bankers’ Bank had approximately 450 client banks in four states, and operated one regional office.

#139

  • Failed bank: Imperial Capital Bank, La Jolla CA
  • Acquiring bank: City National Bank, LA CA
  • Vitals: as of 9/30 assets of $4.0 billion, deposits of $2.8 billion
  • DIF damage estimate: $619 million

#140

  • Failed bank: First Federal Bank, Santa Monica CA
  • Acquiring bank: One West Bank FSB, Pasadena CA
  • Vitals: as of 9/30 assets of $6.1 billion, deposits of $4.5 billion
  • DIF damage estimate: $146 million
Comments

I’ve become addicted to these bank failure posts. Every Friday I wait for them, and hope that it is not a very bad number. Actually I am waiting for a day, when you will report that none failed, but I wonder if that will happen even in 2010.

 

Ah… nice to see them finally take Fist Fed out behind the shed.

Beal Bank is a fun one, by the way. No branches, almost never originates credit. Beal, the owner, has made a mint buying up distressed assets the last year plus.

Posted by Andrew | Report as abusive
 

I don’t think they’ll close any more banks this year, btw. 2009 = 140 banks

Posted by Andrew | Report as abusive
 

$1.8b losses on $14.5b of assets.

What happens when banks are forced to bring toxic assets back on their books by FASB, defaults continue, and the Fed’s agency-debt buying program expires in March, causing interest rates to rise?

Don’t see how the Fed can let the programs expire, as their pain threshold is non-existent. Printing presses are just getting warmed up, imo.

 

A lot of banks can’t wait for rates to rise. They’re getting killed by the low rate environment.

What FASB decides doesn’t matter as much as how the regulators decide banks have to calculate their capital ratios. If the on balance sheet migrate gets largely exempted for a long period of time, nothing will happen.

Posted by Andrew | Report as abusive
 

Andrew…..I would have thought that the steep yield curve would really be helping banks right now.

And if rates rise, real estate prices will head back down…leading to more negative equity and more NPAs, no?

Do expand on your point. Would like to hear the thought in more detail.

Posted by Rolfe Winkler | Report as abusive
 

Manshu….next week might be your week. I doubt Sheila will close any banks the week of Xmas! ;)

Posted by Rolfe Winkler | Report as abusive
 

Till now California bank failures have cost the most the FDIC fund followed by Florida and Georgia.

Check detailed bank failure statistics at :
http://portalseven.com/banks/

Posted by Pravin | Report as abusive
 

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