Bank failure Friday

Feb 5, 2010 22:57 UTC

Just one small bank this week it appears…

#16

  • Failed bank: First American State Bank of Minnesota, Hancock MN
  • Acquiring bank: Community Development Bank, Ogema MN
  • Vitals: at 12/31/09, assets of $18.2 million, deposits of $16.3 million
  • Estimated DIF damage: $3.1 million
COMMENT

…it isn’t 5:00 on the West Coast yet. Patience, Grasshopper…

Posted by PDXDonSmith | Report as abusive

Bank failure Friday

Jan 30, 2010 08:35 UTC

#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

  • Failed bank: Community Bank & Trust, Cornelia GA
  • Acquiring bank: SCBT Bank NA, Orangeburg SC
  • Vitals: at 9/30/09, assets of $1.21 billion, deposits of $1.11 billion
  • Estimated DIF damage: $354.5m

#14

  • Failed bank: First Regional Bank, LA CA
  • Acquiring bank: First Citizens Bank & Trust, Raleigh NC
  • Vitals: assets of $2.18 billion, deposits of $1.87 billion
  • Estimated DIF damage: $825.5m

#15

  • Failed bank: American Marine Bank, Bainbridge Island WA
  • Acquiring bank: Columbia State Bank, Tacoma WA
  • Vitals: at 9/30/09, assets of $373.2m, deposits of $308.5m
  • Estimated DIF damage: $58.9 m

Bank failure Friday

Jan 23, 2010 00:11 UTC

Two billion-plus failures tonight….

By the way….Adam from BearishNews reminds us that the FDIC opened a temporary midwest satellite office to help with asset sales and bank closings.

#5

  • Failed bank: Premier American Bank, Miami FL
  • Acquiring bank: Premier American Bank Natl Assoc., Miami FL
  • Vitals: as of 9/30/09, assets of $350.9 million, deposits of $326.3 million
  • Estimated DIF damage: $85 million

#6

  • Failed bank: Bank of Leeton, Leeton MO
  • Acquiring bank: Sunflower Bank Natl Assoc., Salina KS
  • Vitals: as of 12/31/09, assets of $20.1m, deposits of $20.4m
  • Estimated DIF damage: $8.1 million

#7

  • Failed bank: Charter Bank, Santa Fe NM
  • Acquiring bank: Charter Bank, Albuquerque NM
  • Vitals: as of 9/30/09, assets of $1.2 billion, deposits of $851.5m
  • Estimated DIF damage: $201.9 million

#8

  • Failed bank: Evergreen Bank, Seattle WA
  • Acquiring bank: Umpqua Bank, Roseburg OR
  • Vitals: as of 9/30/09, assets of $488.5m, deposits of $439.4m
  • Estimated DIF damage: $64.2m

#9

  • Failed bank: Columbia River Bank, The Dalles OR
  • Acquiring bank: Columbia State Bank, Tacoma WA
  • Vitals: as of 9/30/09, assets of $1.1 billion, deposits of $1.0 billion
  • Estimated DIF damage: $172.5 million
COMMENT

I guess Obama’s policy of reining in on banks is just on time. Time to have some controls to avoid anymore dangers of systemic failures.

Bank failure Friday

Jan 16, 2010 06:02 UTC

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

Tonight’s bank failures: $14.5 billion combined assets

Dec 18, 2009 23:16 UTC

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
COMMENT

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.

Bank failure Friday

Dec 11, 2009 22:32 UTC

#131

  • Failed bank: Republic Federal N.A., Miami FL
  • Acquiring bank: 1st United Bank, Boca Raton FL
  • Vitals: at 9/30, assets of $433m, deposits of $352.7m
  • DIF damage: $122.6m

#132

  • Failed bank: Valley Capital Bank N.A., Mesa AZ
  • Acquiring bank: Enterprise Bank & Trust, Clayton MO
  • Vitals: at 9/30, assets of $40.3m, deposits of $41.3m
  • DIF damage: $7.4m

#133

  • Failed bank: SolutionsBank, Overland Park KS
  • Acquiring bank: Arvest Bank, Fayetteville AK
  • Vitals: at 9/30, assets of $511.1m, deposits of $421.3m
  • DIF damage: $122.1m

Bank failure Friday

Nov 21, 2009 04:54 UTC

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.

Bank failure Friday

Nov 14, 2009 00:46 UTC

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

#122

  • Failed bank: Orion Bank, Naples FL
  • Acquiring bank: IBERIABANK, Lafayette LA
  • Vitals: at 10/31, assets of $2.7b, deposits of $2.1b
  • DIF damage: $615m

#123

  • Failed bank: Pacific Coast National Bank, San Clemente CA
  • Acquiring bank: Sunwest Bank, Tustin CA
  • Vitals: at 8/31, assets of $134.4m, deposits of $130.9
  • DIF damage: $27.4m
COMMENT

2020 is a long way to go, and farbtoo long to wait for any nation. It is simply a date I read some where… Probably on the back of some worthless piece of paper, or something like that.

Posted by dude | Report as abusive

Bank failure Friday

Nov 6, 2009 22:20 UTC

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

  • Failed bank: Prosperan bank, Oakdale MN
  • Acquiring bank: Alerus Financial NA, Grand Forks ND
  • Vitals: as of 8/30/09, assets of $199.5m, deposits of $175.6m
  • DIF damage: $60.1 million

#119

  • Failed bank: Gateway Bank of St. Louis, St. Louis MO
  • Acquiring bank: Central Bank of Kansas City, KC MO
  • Vitals: as of 9/25/09, assets of $27.7m, deposits of $27.9m
  • DIF damage: $9.2 million

#120

  • Failed bank: United Commercial Bank, SF CA
  • Acquiring bank: East West Bank, Pasadena CA
  • Vitals: as of 10/23/09, assets of $11.2 billion, deposits of $7.5 billion
  • DIF damage: $1.4 billion

The LA Times notes that United Commercial got $299 million of TARP money, which is now gone.

COMMENT

Well, at least not too much DIF damage.

Putting the largest 19 financial institutions in America on the ‘do not touch list’ makes a big difference but there are a number of smaller, yet big enough to hurt the DIF institutions our there who are being left alone despite having received ‘fix it’ letters from the FDIC.

WHY?

Posted by sangellone | Report as abusive

Bank failure Friday

Oct 31, 2009 18:30 UTC

FDIC closed 9 banks late last night, with a combined $19.4 billion of assets all of which were owned by one holding company and sold to US Bank in Minnesota. From Robin Sidel, WSJ:

Banking regulators seized nine related community lenders in California, Illinois, Arizona and Texas, representing the collapse of one of the nation’s largest privately held bank holding companies that grew through a string of acquisitions dating back to the savings-and-loan crisis of the 1990s.

The nine small banks represented the holdings of FBOP Corp., based in Oak Park, Ill., and owned by a banker who had plowed into real-estate lending around the country.

#107-#115

  • Failed banks: Bank USA, Phoenix AZ; California National Bank, LA CA; San Diego National Bank, SD CA; Pacific National Bank, SF CA; Park National Bank, Chicago IL; Community Bank of Lemont, Lemont IL; North Houston Bank, Houston TX; Madisonville State Bank, Madisonville TX; Citizens National Bank, Teague TX.
  • Acquiring bank: US Bank, Minneapolis MN
  • Vitals: as of 9/30, $19.4 billion of assets, $15.4 billion of deposits
  • DIF damage: $2.5 billion

US Bank has been highly acquisitive during this failure cycle. They also picked up Downey Savings and Loan and PFF Bank and Trust last November. Those two had $12.4 billion and $3.7 billion of assets when they failed.

COMMENT

Things are getting worse.

Posted by Casper | Report as abusive

#100….and counting (+ charts)

Oct 23, 2009 21:42 UTC

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

#103

  • Failed bank: Flagship National Bank, Bradenton FL
  • Acquiring bank: First Federal Bank of Florida, Lake City FL
  • Vitals: as of 8/31, assets of $190 million, deposits of $175m
  • DIF damage: $59m

#104

  • Failed bank: Bank of Elmwood, Racine WI
  • Acquiring bank: Tri City National Bank, Oak Creek WI
  • Vitals: as of 9/30, assets of $327 million, deposits of $273m
  • DIF damage: $101m

#105

  • Failed bank: Riverview Community Bank, Ostego MN
  • Acquiring bank: Central Bank, Stillwater MN
  • Vitals: as of 8/31, assets of $108 million, deposits of $80m
  • DIF damage: $20m

#106

  • Failed bank: First DuPage Bank, Westmont IL
  • Acquiring bank: First Midwest Bank, Itasca IL
  • Vitals: as of 8/31, assets of $279 million, deposits of $254m
  • DIF damage: $59m

This week’s bonus: a promotional video from Sheila….

One problem I have: It’s not fair to compare the number of bank failures during this cycle to the number in past cycles. As a % of GDP, the deposits in failed banks is far higher this time ’round:

(Click chart to enlarge in new window)

deposits-in-failed-banks

Yes, I include Citi, BofA and Wachovia in the failed bank bucket. None of them could have withstood last year’s crisis were it not for bailouts and ultra-easy money.

Also, it’s important to remind folks that the big four banks have grown significantly larger in recent years….

create animated gif

COMMENT

…one other thing, I know De Beers Diamonds were under scrutiny for antitrust, is there something similar for Bank Monopolies ?

Posted by Casper | Report as abusive

Bank failure Friday, Bair on TBTF at Buttonwood

Oct 17, 2009 10:59 UTC

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?

“No. I don’t know how we would do that.”

She said, for instance, she didn’t think anything like a $500 billion cap on assets would be workable. She said we need to articulate that government won’t be there next time so that the market imposes discipline on banks. Hence, her emphasis on the need for broad resolution authority to resolve the biggest financial institutions.

Another specific policy proposal: limit the claims of secured creditors so that they face losses of up to 20% when a bank fails. Presumably, if they were on the hook for losses, it would be harder for banks to raise debt without having a substantial equity cushion and without acting prudently on the asset side of the balance sheet.

She also repeated her suggestion that there be an insurance fund for the biggest banks, statutorily prohibited from bailing out shareholders. That’s an important last point. The risk of creating a new insurance fund for TBTF banks is that it would REDUCE market discipline, that, done wrong, government would effectively be codifying the implicit guarantee that TBTF banks currently enjoy.

So long as a fund stands behind them, depositors and lenders may not demand the most robust risk management. That’s my concern with proposals to designate certain big banks as systemically important. It might just send a signal to markets that these banks are backstopped, so funding would flow to them at below-market rates, allowing them to grow even larger relative to banks not so-designated.

Why did Fan and Fred attract so much capital? The implicit guarantee…

Another proposal: limiting the amount of short-term secured funding banks are allowed to have. That’s why investment banks were dropping like flies over weekends, because much of their funding was short-term. Their lenders could walk away on short-notice. Basically, they were being hit by the up-market equivalent of a bank run.

Asked if we should reinstitute/update Glass Steagall, Bair said no, that’s probably not possible, but she did say insured deposits are being used in risky ways she doesn’t like. She singled out “prop trading.”

Amen.

COMMENT

jjw…agreed. In fact, that’s one of Bair’s arguments.

But because it would be hard to break them up we shouldn’t even try? We’re supposed to live with state-backed banks which engage in highly risky activities?

Posted by Rolfe Winkler | Report as abusive

Bank Failures: counting ‘em up

Oct 3, 2009 01:54 UTC

Here’s how bank failures have stacked up since the beginning of this failure cycle in 2007. The estimated DIF damage figure is pulled from FDIC press releases. The ultimate cost of many of the older failures may have differed significantly from initial esimates.

2007

  • Number of failed banks: 3
  • Vitals: assets of $2.6 billion, deposits of $2.4 billion
  • Estimated DIF damage: $113 million
  • Biggest failure: NetBank — $2.5 billion assets/$2.3 billion deposits/DIF damage: $110 million

2008

  • Number of failed banks: 25
  • Vitals: assets of $372 billion, deposits of $233.2 billion
  • Estimated DIF damage: $17.1 billion
  • Biggest failure: WaMu, $307b assets/$188b deposits/DIF damage: $0
  • Most expensive failure: IndyMac — $32b assets/$19.1b deposits/DIF damage: $10.7b

Q1 2009

  • Number of failed banks: 21
  • Vitals: assets of $9.6 billion, deposits of $7.9 billion
  • Estimated DIF damage: $2.3 billion
  • Biggest failure: County Bank, Merced CA — $1.7b assets/$1.3b deposits/DIF damage: $135m
  • Most expensive failure: Omni National, Atlanta — $1.0b assets/$800m deposits/DIF damage: $290m

Q2 2009

  • Number of failed banks: 24
  • Vitals: assets of $26.5 billion, deposits of $19.6 billion
  • Estimated DIF damage: $9.0 billion
  • Biggest failure: BankUnited — $12.8b assets/$8.6b deposits/DIF damage: $4.9b
  • Most expensive failure: see above

Q3 2009

  • Number of failed banks: 50
  • Vitals: assets of $68.7 billion, deposits of $60.0 billion
  • Estimated DIF damage: $14.9 billion
  • Biggest failure: Colonial Bank — $25.0b assets/$20.0b deposits/DIF damage: $2.8b
  • Most expensive failure: Guaranty Bank — $13.0b assets/$12.0b deposits/DIF damage: $3.0b

GRAND TOTALS

  • Number of failed banks: 123
  • Vitals: assets of $479 billion, deposits of $323.2 billion
  • Estimated DIF damage: $43.4 billion

Bank failure Friday

Oct 2, 2009 22:29 UTC

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

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.

COMMENT

I want to vote for the next ceo of bofa, cit, and aig as a taxpayer and now a shareholder in these companies that accepted tarp. PEUW on government oversight, it should be public taxpayer assoc. oversight. ANYONE willing to join?

Posted by MIOMI | Report as abusive

Bank Failure Friday

Sep 25, 2009 20:50 UTC

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!

COMMENT

The FDIC takeover is not a bailout — it is just the opposite — it is the “closure” of 2 banks. (has absolutely nothing to do with Tarp)

Another bank may purchase the failed banks, and if not,
then the assets will be sold to another willing buyer. The FDIC will cover up to $250,000 per account (if properly vested) and those funds come from “all” Banks in a form of dues based on bank deposits.

This is the FDIC not the Fed (which is a private corporation).

Posted by ddavid | Report as abusive
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