Bank failure Friday — PR banks go down

April 30, 2010

Taken together, the estimated loss for the Deposit Insurance Fund for the three failed Puerto Rican banks is a whopping $5.3 billion (add another $2.1 billion for the night’s other 4 failures).

That’s the largest hit to the Deposit Insurance Fund since IndyMac failed nearly two years ago, costing the DIF $10.7 billion.

Though its “net worth” stood at -$20.9 billion as of 12/31/09, FDIC reported that the DIF had $66 billion of cash on hand. So Sheila won’t be asking Treasury for funds any time soon. Failures have been, and will continue to be, paid for out of assessments on banks.

By assets, WesternBank and R-G Premier Bank rank #2 and #8 on CR’s unofficial problem bank list.

It’s also worth noting that the pace of bank failures has picked up significantly. This week there were 7, last week there were 7, the week before there were 8. Year-to-date, FDIC has closed twice as many banks in 2009 (64) as 2008 (32).

#58

–Failed bank: Eurobank, San Juan, Puerto Rico
–Regulator: Puerto Rico Commissioner of Financial Institutions
–Acquiring bank: Oriental Bank and Trust, San Juan, Puerto Rico
–Transaction: loss share on $1.58 billion of assets
–Vitals: assets of $2.56 billion, deposits of $1.97 billion
–Estimated DIF damage: $743.9 million

#59

–Failed bank: R-G Premier Bank of Puerto Rico, Hato Rey, Puerto Rico
–Regulator: Puerto Rico Commissioner of Financial Institutions
–Acquiring bank: Scotiabank de Puerto Rico, San Juan, Puerto Rico
–Transaction: loss share on $5.41 billion of assets
–Vitals: assets of $5.92 billion, deposits of $4.25 billion
–Estimated DIF damage: $1.23 billion

#60

–Failed bank: Westernbank Puerto Rico, Mayaguez, Puerto Rico
–Regulator: Puerto Rico Commissioner of Financial Institutions
–Acquiring bank: Banco Popular de Puerto Rico, San Juan, Puerto Rico
–Transaction: loss share on $8.77 billion of assets
–Vitals: assets of $11.94 billion, deposits of $8.62 billion
–Estimated DIF damage: $3.31 billion

#61

–Failed bank: CF Bancorp, Port Huron MI
–Regulator: Michigan Office of Financial and Insurance Regulation
–Acquiring bank: First Michigan Bank, Troy MI
–Transaction: loss share on $808.1 million of assets
–Vitals: assets of $1.65 billion, deposits of $1.43 billion
–Estimated DIF damage: $615.3 million

#62

–Failed bank: Champion Bank, Creve Coeur MO
–Regulator: Missouri Division of Finance
–Acquiring bank: BankLiberty, Liberty MO
–Transaction: loss share on $113.5 million of assets
–Vitals: assets of $187.3 million, deposits of $153.8 million
–Estimated DIF damage: $52.7 million

#63

–Failed bank: BC National Banks, Butler MO
–Regulator: OCC
–Acquiring bank: Community First Bank, Butler MO
–Transaction: loss share on $37.9 million of assets
–Vitals: assets of $67.2 million, deposits of $54.9 million
–Estimated DIF damage: $11.4 million

#64

–Failed bank: Frontier Bank, Everett WA
–Regulator: Washington Department of Financial Institutions
–Acquiring bank: Union Bank, National Association, San Francisco CA
–Transaction: loss share on $3.04 billion of assets
–Vitals: assets of $3.50 billion, deposits of $3.13 billion
–Estimated DIF damage: $1.37 billion

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
  •