Dedicated to Deposits: Deals, Data, and Discussion

106 Bank Failures for 2009

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We broke through the 100th bank failure milestone today with 7 closures. The total number of bank failures this year is now 106. All 7 of the failed banks were small with the largest one having assets of $327.4 million. Florida had the most closures with 3 banks. The other closures were in Georgia, Wisconsin, Minnesota and Illinois. Georgia continues as the state with the most bank failures. Georgia's total is now 20. Illinois is close behind with 17 failures.

Like most of the bank failures this year, the FDIC was able to find buyers to assume all deposits of the 7 failed banks. So the only concern for depositors will be how the acquiring banks will change existing CD rates. The acquiring banks are free to lower existing CD rates from the day of closure. However, depositors will be free to withdraw their deposits without a penalty for early withdrawal.

In addition to bank failures, one credit union was placed into conservatorship. The NCUA assumed control of operations at First Delta Federal Credit Union of Marks, Mississippi. First Delta is a small credit union with only 5,500 members and $5 million in assets (NCUA's press release).

Below is a summary of today's bank failures:

100th Bank Failure of 2009 (7th in FL)
  • FDIC Press Release, OTS Press Release
  • Closed Bank: Partners Bank, Naples, FL
  • Size: 2 offices, $65.5 million in assets, $64.9 million in deposits
  • Possible Uninsured Deposits: All deposits transferred
  • Acquiring Bank: Stonegate Bank, Fort Lauderdale, FL
  • Rate Changes: Stonegate Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $28.6 million
  • Financial Ratings: 0 star (lowest) at BauerFinancial, 1 star (lowest) at Bankrate.com
101st Bank Failure of 2009 (20th in GA)
  • FDIC Press Release
  • Closed Bank: American United Bank, Lawrenceville, GA
  • Size: 1 office, $111 million in assets, $101 million in deposits
  • Possible Uninsured Deposits: All deposits transferred
  • Acquiring Bank: Ameris Bank, Moultrie, GA
  • Rate Changes: Update 11/04/09: All CDs were immediately converted to an interest rate of 0.65%. Reader reported receiving a letter from Ameris, dated 10/23 but postmarked 10/29.
  • Estimated Cost to Deposit Insurance Fund: $44 million
  • Financial Ratings: 0 star (lowest) at BauerFinancial, 1 star (lowest) at Bankrate.com
102nd Bank Failure of 2009 (8th in FL)
  • FDIC Press Release
  • Closed Bank: Hillcrest Bank Florida, Naples, FL
  • Size: 6 offices, $83 million in assets, $84 million in deposits
  • Possible Uninsured Deposits: All deposits transferred except some brokered deposits
  • Acquiring Bank: Stonegate Bank, Fort Lauderdale, FL
  • Rate Changes: Stonegate Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $45 million
  • Financial Ratings: 0 star (lowest) at BauerFinancial, 1 star (lowest) at Bankrate.com
103rd Bank Failure of 2009 (9th in FL)
  • FDIC Press Release, OCC Press Release
  • Closed Bank: Flagship National Bank, Bradenton, FL
  • Size: 4 offices, $190 million in assets, $175 million in deposits
  • Possible Uninsured Deposits: All deposits transferred
  • Acquiring Bank: First Federal Bank of Florida, Lake City, FL
  • Rate Changes: First Federal Bank of Florida will review rates
  • Estimated Cost to Deposit Insurance Fund: $59 million
  • Financial Ratings: 0 star (lowest) at BauerFinancial, 1 star (lowest) at Bankrate.com
104th Bank Failure of 2009 (1st in WI)
  • FDIC Press Release
  • Closed Bank: Bank of Elmwood, Racine, WI
  • Size: 5 offices, $327.4 million in assets, $273.2 million in deposits
  • Possible Uninsured Deposits: All deposits transferred except some brokered deposits
  • Acquiring Bank: Tri City National Bank, Oak Creek, WI
  • Rate Changes: Tri City National Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $101.1 million
  • Financial Ratings: 0 star (lowest) at BauerFinancial, 1 star (lowest) at Bankrate.com
105th Bank Failure of 2009 (5th in MN)
  • FDIC Press Release
  • Closed Bank: Riverview Community Bank, Otsego, MN
  • Size: 2 offices, $108 million in assets, $80 million in deposits
  • Possible Uninsured Deposits: All deposits transferred
  • Acquiring Bank: Central Bank, Stillwater, MN
  • Rate Changes: Central Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $20 million
  • Financial Ratings: 0 star (lowest) at BauerFinancial, 1 star (lowest) at Bankrate.com
106th Bank Failure of 2009 (17th in IL)
  • FDIC Press Release
  • Closed Bank: First Dupage Bank, Westmont, IL
  • Size: 1 office, $279 million in assets, $254 million in deposits
  • Possible Uninsured Deposits: All deposits transferred except some brokered deposits
  • Acquiring Bank: First Midwest Bank, Itasca, IL
  • Rate Changes: First Midwest Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $59 million
  • Financial Ratings: 0 star (lowest) at BauerFinancial, 1 star (lowest) at Bankrate.com
The above ratings are based on 6/30/09 financial data.

References:

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Comments
Comment #1 by Anonymous posted on
Anonymous
In a sad sign of the times, today I received phishing e-mail with the subject line "FDIC alert: check your Bank Deposit Insurance Coverage." It informed me that the FDIC had just listed a bank with which I had deposits as a failed bank, and I needed to do X, Y, and Z (through the links very conveniently provided, of course) to check my FDIC insurance coverage. Have to give them credit for at least paying attention to the financial news!

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